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New Mexico Chili Association Urges State Government To Consider Tax Breaks

by Mike Godfrey, Tax-News.com, Washington

27 November 2008

The New Mexico Chili Association (NMCA) has asked the state legislature to consider implementing greater tax breaks for the state's struggling farmers.

The NMCA's proposal was put forward to the legislature's Interim & Rural Development Committee in the hope that they may offer greater tax incentives to chili farmers currently battling to make a profit amid increasing labour costs and diminishing workforces.

The idea put forward by the NMCA details a USD200 tax credit for every registered acre of chili grown, and would run from the summer of 2009 until sometime in 2011.

It is hoped that the concession would help farmers complete the transition from hand to mechanical methods of harvesting, but would come at an estimated cost to the state of USD2m for each year of its implementation.

The legislatures's comments on the proposal are still awaited.

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