Finance

New Mexico lawmakers are considering expanding a technology jobs R&D tax credit as the state competes for advanced energy, aerospace, and computing investment. HB 27 would revisit incentives that currently offer up to 5% of qualified R&D spending—10% in rural areas—according to an LFC assessment.

New Mexico’s Senate Bill 177 would move and appropriate state dollars toward tech-focused economic development, including innovation hubs, workforce programs, and matching funds tied to federal AI and quantum initiatives. Supporters say the measure is designed to turn lab and university research into businesses that stay in-state, while critics are expected to focus on scale and oversight.

Los Alamos National Laboratory said it spent about $2.9 billion in New Mexico during FY2025, according to its annual economic impact report, alongside a $5.28 billion budget and more than 16,000 employees (excluding contractors).

Two startups—New Mexico’s Guide Theory and Denver’s SouthLight Services—each won $10,000 at CNM Ingenuity’s Ski Lift Pitch in Taos Ski Valley, as the event added a new out-of-state prize and showcased four finalists.

Moody’s upgraded New Mexico’s issuer rating to Aa1 from Aa2, citing governance and steps to reduce reliance on volatile oil-and-gas revenue. The move can lower borrowing costs over time, but analysts and officials are watching federal funding risks and the durability of the state’s revenue shift toward recurring investment income.