N.M. Stat. § 3-32-1 (2026)

Wherever used in the Industrial Revenue Bond Act unless a different meaning
clearly appears in the context, the following terms whether used in the singular or plural
shall be given the following respective interpretations:

   A. "municipality" means a city, town or village in New Mexico;

    B. "project" means any land and building or other improvements thereon, the
acquisition by or for a New Mexico corporation of the assets or stock of an existing
business or corporation located outside the state to be relocated within or near the
municipality in the state and all real and personal properties deemed necessary in
connection therewith, whether or not now in existence, which shall be suitable for use
by the following or by any combination of two or more thereof:

      (1)   an industry for the manufacturing, processing or assembling of agricultural
or manufactured products;

       (2)    a commercial enterprise in storing, warehousing, distributing or selling
products of agriculture, mining or industry but does not include a facility designed for the
sale of goods or commodities at retail or distribution to the public of electricity, gas,
water or telephone or other services commonly classified as public utilities;

       (3)    a business in which all or part of the activities of the business involve the
supplying of services to the general public or to governmental agencies or to a specific
industry or customer but does not include an establishment primarily engaged in the
sale of goods or commodities at retail;

      (4)     a water distribution or irrigation system, including without limitation,
pumps, distribution lines, transmission lines, towers, dams and similar facilities and
equipment, designed to provide water to a vineyard or winery;

       (5)    an electric generation or transmission facility, other than one for which
both location approval and a certificate of convenience and necessity are required prior
to commencing construction or operation of the facility, pursuant to the Public Utility Act
[Chapter 62, Articles 1 to 13 NMSA 1978];

      (6)    an energy storage facility, which is a facility that uses mechanical,
chemical, thermal, kinetic or other processes to store energy for release at a later time
to integrate energy supply associated with renewable generation across the electric
grid; and

       (7)    a 501(c)(3) corporation;

  C. "governing body" means the board or body in which the legislative powers of the
municipality are vested;

   D. "property" means any land, improvements thereon, buildings and any
improvements thereto, machinery and equipment of any and all kinds necessary to the
project, operating capital and any other personal properties deemed necessary in
connection with the project;

   E. "mortgage" means a mortgage or a mortgage and deed of trust or the pledge and
hypothecation of any assets as collateral security;

   F. "health care service" means the diagnosis or treatment of sick or injured persons
or medical research and includes the ownership, operation, maintenance, leasing and
disposition of health care facilities such as hospitals, clinics, laboratories, x-ray centers
and pharmacies and, for any small municipality only, office facilities for physicians;

   G. "refinance a hospital or 501(c)(3) corporation project" means the issuance of
bonds by a municipality and the use of all or substantially all of the proceeds to liquidate
any obligations previously incurred to finance or aid in financing a project of a nonprofit
corporation engaged in health care services, including nursing homes, or of a 501(c)(3)
corporation, which would constitute a project under the Industrial Revenue Bond Act
[Chapter 4, Article 59 NMSA 1978] had it been originally undertaken and financed by a
municipality pursuant to the Industrial Revenue Bond Act; and

   H. "501(c)(3) corporation" means a corporation that demonstrates to the taxation
and revenue department that it has been granted exemption from the federal income tax
as an organization described in Section 501(c)(3) of the Internal Revenue Code of
1986, as amended or renumbered.

History: 1953 Comp., § 14-31-1, enacted by Laws 1965, ch. 300; 1969, ch. 201, § 1;
1974, ch. 50, § 1; 1977, ch. 267, § 1; 1977, ch. 335, § 1; 1981, ch. 45, § 1; 1983, ch.
282, § 1; 2002, ch. 25, § 1; 2002, ch. 37, § 1; 2020, ch. 14, § 1; 2024, ch. 67, § 1.

                                      ANNOTATIONS

Cross references. — For public aid to private enterprises prohibited, see N.M. Const.,
art. IX, § 14.

For the County Industrial Revenue Bond Act, see 4-59-1 NMSA 1978 et seq.

For Section 501(c)(3) of the Internal Revenue Code of 1986, see 26 U.S.C. § 501(c)(3).
The 2024 amendment, effective July 1, 2024, amended the Industrial Revenue Bond
Act to include certain electric energy storage facilities as eligible projects; and in
Subsection B, added a new Paragraph B(6) and redesignated former Paragraph B(6) as
Paragraph B(7).

The 2020 amendment, effective July 1, 2020, included electric transmission facilities
within the definition of an eligible "project" as used in the Industrial Revenue Bond Act,
and made certain technical amendments; and in Subsection B, Paragraph B(5), after
"electric generation", added "or transmission", and after "Public Utility Act", deleted "and
Electric Utility Industry Restructuring Act of 1999".

2002 Amendments. — Laws 2002, ch. 25, § 1, effective May 15, 2002, added a new
Paragraph B(5); in Subsection G, inserted "or 501(c)(3) corporation" and "or of any
501(c)(3) corporation"; and added Subsection H.

Laws 2002, ch. 37, § 1, effective May 15, 2002, added Paragraphs B(5) and (6); in
Subsection G, inserted "or 501(c)(3) corporation" and "or of any 501(c)(3) corporation";
and added Subsection H.

Pollution control facilities are "project". — Pollution control facilities which do not
provide any substantial employment fall within the definition of the term "project" as
contained in this section, because this section does not require that a "project" increase
employment. Kennecott Copper Corp. v. Town of Hurley, 1973-NMSC-032, 84 N.M.
743, 507 P.2d 1074.

Issuance of bonds for pollution control facilities was constitutional. — The
issuance of revenue bonds pursuant to the Industrial Revenue Bond Act to finance the
cost of pollution control facilities was a proper "public purpose" for which such revenue
bonds could be constitutionally issued. Kennecott Copper Corp. v. Town of Hurley,
1973-NMSC-032, 84 N.M. 743, 507 P.2d 1074.

Constitutionality of revenue bonds. — Revenue bonds which do not engage the
general taxing power of the state, or a political subdivision thereof, are not within the
prohibition of N.M. Const., art. IX, §§ 12 and 13, either as to the requirement for
approval of a popular referendum, or as exceeding constitutional limitation on
indebtedness. Village of Deming v. Hosdreg Co., 1956-NMSC-111, 62 N.M. 18, 303
P.2d 920.

Indebtedness created by revenue bonds are not the kind of "debt" the framers of the
constitution had in mind and were talking about in N.M. Const., art. IX, §§ 12 and 13.
Village of Deming v. Hosdreg Co., 1956-NMSC-111, 62 N.M. 18, 303 P.2d 920.

Constitutionality of bonds issued for purpose of promoting industry and trade. —
Statute authorizing the issuance of bonds by municipalities to finance projects for the
purpose of promoting industry and trade did not violate N.M. Const., art. IX, § 12 or 14.
Village of Deming v. Hosdreg Co., 1956-NMSC-111, 62 N.M. 18, 303 P.2d 920.
Bonds issued to promote industry and trade did not violate public policy. —
Statute authorizing the issuance of bonds by municipalities to finance projects for the
purpose of promoting industry and trade did not present a program in violation of public
policy. Village of Deming v. Hosdreg Co., 1956-NMSC-111, 62 N.M. 18, 303 P.2d 920.

Exclusion of businesses from act. — A business should be specifically excluded from
the Industrial Revenue Bond Act before it may be deprived of the act's benefits. 1967
Op. Att'y Gen. No. 67-120.

In order for a business to qualify as a "project" it must be an existing business.
1960 Op. Att'y Gen. No. 60-114.

Unless an existing business is acquired, there is no valid "project" under this
section. 1960 Op. Att'y Gen. No. 60-114, overruled to the extent it conflicts with 1960
Op. Att'y Gen. No. 60-172

"Primarily engaged in the sale of goods or commodities at retail," in Subsection
B(3), means a facility which is "principally" or "chiefly" devoted to retail sales. 1981 Op.
Att'y Gen. No. 81-32.

When office building qualifies as "project". — An office building available for general
commercial leasing qualifies as a "project" if less than half the available space is leased
to retail trade. 1981 Op. Att'y Gen. No. 81-32.

Issuance of bonds for financing machinery and equipment. — The word "project"
as used in this section allows a municipality to issue revenue bonds for financing
machinery and equipment to be used in an industry, the land and building of which are
financed through other means. 1971 Op. Att'y Gen. No. 71-51.

Cemetery is not "project". — A cemetery cannot be purchased by a municipality
under the Industrial Revenue Bond Act because a cemetery would not appear to fall
within the definition of "project" as that term is used in this section. 1970 Op. Att'y Gen.
No. 70-102.

Municipally owned portions of a project are tax exempt. If a municipality acquires
land, and leases that land for the construction and operation of a project, the land
owned by the municipality is not subject to an ad valorem tax. But the leasehold interest
of the corporation operating the project, and all its raw materials, stock, equipment and
buildings may be so taxed, and all of the privilege, excise and income taxes are still
applicable. 1960 Op. Att'y Gen. No. 60-190.

Using bond proceeds. — Bond proceeds may be used to acquire land, buildings and
improvements for sale or lease to a commercial airline already located in New Mexico.
1967 Op. Att'y Gen. No. 67-120.
Bond proceeds may be used to acquire a facility consisting of land, building and
equipment, but not the assets and stock of a business. 1960 Op. Att'y Gen. No. 60-172.

Law reviews. — For article, "New Mexico Taxes: Taking Another Look", see 32 N.M.L.
Rev. 351 (2002).

For article, "Ad Valorem Tax Status of a Private Lessee's Interest in Publicly Owned
Property: Taxability of Possessory Interests in Industrial Projects under the New Mexico
Industrial Revenue Bond Act," see 3 N.M.L. Rev. 136 (1973).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 64 Am. Jur. 2d Public Securities and
Obligations § 85.

Eminent domain: industrial park or similar development as public use justifying
condemnation of private property, 62 A.L.R.4th 1183.

64 C.J.S. Municipal Corporations § 1957.