Six companies will create jobs in New Mexico because of a new law that eliminates gross receipts tax on maintenance and parts for aircraft.
Gov. Susana Martinez announced on Thursday that combined the six companies are expected to create 150 new jobs.
“Making New Mexico competitive has proven to be an effective strategy in growing our aviation industry and helping attract new businesses to our state,” Martinez said. “By signing today’s bill, we are able to level the playing field with other states so we can keep aviation business here.”
The bill extends the existing gross receipts tax deduction for manufacturers of aircraft to all companies that provide parts and labor services for aircraft. With the exception of Utah, every state surrounding New Mexico does not tax aircraft service and maintenance.
“This is a very good day for the New Mexico aviation industry as we can now directly compete with our neighboring states, which will swiftly bring more work and new jobs to our industry,” Sante Fe Aero Services Owner Ron Tarrson said. “For our company, we are immediately establishing a new aircraft avionics and maintenance center at the Santa Teresa Airport and expect to hire some 20 new technicians in the next few of years – all new good-paying jobs that are in addition to the 20 folks we already employee in Santa Fe and Albuquerque.”
Martinez also signed legislation into law last week that eliminates the sales tax on aircraft that weigh more than 10,000 pounds.