Building on Success: Longer Tax Abatements Signed Into Law
Expanded incentives expected to bring more investment, housing, and community benefits to Albuquerque
ALBUQUERQUE – Gov. Michelle Lujan Grisham has signed legislation that will strengthen Albuquerque’s ability to support redevelopment projects and bring new housing, businesses, and community spaces to life.
Senate Bill 58 updates the state’s Metropolitan Redevelopment Code to allow a property tax freeze for redevelopment projects up to 14 years--an increase from the current seven-year limit. The legislation was sponsored by Sen. Heather Berghmans, Rep. Cristina Parajón, Sen. Nicole Tobiassen, and Sen. Cindy Nava. The change builds on the City’s existing Redevelopment Tax Abatement (RTA) program and is expected to encourage more investment in Metropolitan Redevelopment Areas.
“Long-term change doesn’t happen overnight, and we appreciate the governor’s partnership and the leadership of the bill sponsors in making this effort possible,” said Mayor Tim Keller. “We are working to make sure every project has the time it needs to succeed, bringing housing, jobs, and opportunities directly to our neighborhoods.”
The City’s Metropolitan Redevelopment Agency (MRA) manages the RTA program, which has supported more than 350 new homes, built or under construction. The program freezes property taxes at predevelopment values while projects are built or renovated, and gives developers time to get established before paying taxes on the improved property. Under the new law, the City can maintain that tax level for up to 14 years after construction is complete, depending on a project’s size and needs.
The law applies to new redevelopment agreements signed after it takes effect. In the months ahead, the MRA will work with partners and stakeholders to finalize implementation details and identify projects that could benefit from the extended timeline.
“This change gives communities and developers more time to make projects succeed,” said MRA Director Terry Brunner. “Redevelopment often takes years of planning and construction. With more time, we can support projects that bring housing, jobs, and vibrant community spaces to life for Albuquerque families.”
For more information about the RTA program, visit the MRA Website.