Companies that want tax breaks in Bernalillo County must now show how those corporate subsidies will turn into community benefits for taxpayers who fund them.
The Bernalillo County Board of County Commissioners on Wednesday approved a first-of-its-kind resolution that requires businesses seeking public subsidies, including Industrial Revenue Bonds, to commit to local hiring, support for small businesses and environmental protections.
Commissioner Barbara Baca sponsored the measure, which creates a scoring system that links the size of a company’s tax break to those commitments.
The resolution also creates a Community Benefits Fund, which companies must support with at least 5% of their tax savings from payments in lieu of taxes to fund workforce training and environmental priorities. A permanent community advisory board will review major development proposals.
“We need to remain competitive in our efforts to recruit, retain and grow businesses,” Baca said. “But with those incentives, which sometimes are millions of dollars over 30 years, we are also saying we need to have community benefits integrated into these decisions.”
Bernalillo County is the first in New Mexico to adopt these requirements, according to the county. Commissioners developed the policy over a year through public meetings, a steering committee and consultation with experts.