OPINION: New Mexico can't afford to be left out of innovation and opportunity 

New Mexico has always been a place of ingenuity. From agriculture and aerospace to energy and advanced manufacturing, we’ve built our economy by solving problems in tough environments. But too often, when the New Mexico Legislature talks about innovation, investment and economic development, they forget about the importance of research and development (R&D). Passing the R&D tax credit bill is a chance to change that — and it’s a chance the Legislature should not miss.

The research and development tax credit is not a giveaway. It’s a proven tool used by dozens of states to attract private investment, grow home-grown companies and turn good ideas into good business with good-paying jobs. At its core, the credit rewards businesses for doing exactly what we say we want more of in New Mexico: developing new technologies, improving processes and commercializing innovation right here instead of exporting it elsewhere.

New Mexico is standing on the precipice of a once-in-a-lifetime opportunity to own the advanced energy sector and the advanced computing sector. We’ve seen dozens of news stories about the international interest in New Mexico from quantum and fusion companies. If we don’t act now, our neighbors will and we will be shut out of this opportunity.

For southern New Mexico, the benefits are especially clear. The region is home to world-class assets, including White Sands Missile Range, New Mexico State University, aerospace and defense contractors, and a growing cluster of energy and aerospace startups. The borderplex is becoming more and more attractive for companies searching for a permanent home.

And in northern New Mexico, we have three national laboratories, the University of New Mexico, Central New Mexico Community College and exciting new projects like Pacific Fusion and Castilion. What we lack is a competitive policy environment that encourages companies to take risks on new ideas and invest locally for the long term.

Without an expanded R&D tax credit, too many promising projects stall or move out of state. Companies look at and often choose our neighbors — Arizona, Texas, Colorado and Utah, all of which aggressively incentivize research and innovation. They decide their capital is better spent elsewhere. Once a company has received that capital infrastructure investment it’s costly for them to abandon the location, meaning they typically stay in that location, which drives job growth into the future. And those decisions cost New Mexico jobs, talent and an expanding tax base.

Passing the R&D tax credit bill would send a clear signal that New Mexico is open for business — not just in Albuquerque, but in Las Cruces, Santa Teresa, Alamogordo, Silver City, Hobbs, Carlsbad and communities across the state. It would help existing employers reinvest locally, attract new companies tied to defense, space, clean energy and advanced manufacturing, and support startups emerging from our universities and research institutions.

Importantly, this credit supports the kinds of jobs New Mexico needs: high-skill, high-wage positions that keep our young people from having to leave the state to build a career. When R&D happens locally, it creates a ripple effect — engineers, technicians, suppliers, construction workers and service businesses all benefit.

This is also a smart, accountable investment. R&D tax credits are performance-based. Companies only receive the credit if they actually spend money in New Mexico on research activities. That means real payroll, real facilities and real economic activity — not promises.

New Mexico is ready for the next generation of projects, from space commercialization to energy innovation to advanced manufacturing. What we need now is a Legislature willing to back that future with modern, competitive policy.

Passing the R&D tax credit bill is about making sure New Mexico isn’t left behind. The Legislature should seize this opportunity.

Davin Lopez is the president of New Mexico IDEA, a the statewide economic development professional association.