NM Democrats urge restraint on Tesla incentives

Published on NewsOK Modified: April 3, 2014 at 9:50 pm •  Published: April 3, 2014
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ALBUQUERQUE, N.M. (AP) — A dozen legislators and other Democrats say New Mexico shouldn't go overboard in granting tax breaks to Tesla Motors so the electric car company locates a battery plant in the state.

In a letter to the Albuquerque Journal (http://bit.ly/QIGb0h ), the Democrats said any bid to attract the plant shouldn't rely solely on tax breaks.

Arizona, California, Nevada and Texas also are trying to win the $5 billion battery plant.

The New Mexico Democrats' letter said the state can't afford to give up so much future tax revenue to Tesla that education and other needs aren't met. It also says incentives for Tesla shouldn't cause other taxpayers to pay more.

While the letter described Tesla as a cutting-edge carmaker that could have a positive impact on New Mexico's economy, it argued that the state has lost money in previous deals with out-of-state corporations.

Republican Gov. Susana Martinez has said she might consider calling a special legislative session on economic incentives to make New Mexico more appealing to Tesla.