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Local Incentives

Land, Buildings and Infrastructure

The City of Clovis has cash assistance available for qualifying businesses for furthering or implementing economic development plans and projects including the purchase of land, buldings, and infrastructure defined by the local economic development plan. A combination of low interest loans, subsidized land costs, and performance based grants are negotiated on a case-by-case basis.

Clovis Industrial Development Corporation (CIDC)

The Clovis Industrial Development Corporation is a private, nonprofit organization that works with qualified businesses on an individual basis to provide land, buildings, and financial incentives for industrial development.

Education

Clovis Community College

Clovis Community College- Industrial Technology Program
Clovis Community College (CCC) will design training programs specific to an employer’s needs.  The training can be conducted on campus or on-site and can vary in length, depending on need.  The training is available at low cost, and often with incentives, at no cost to the employer.

Clovis Community College provides opportunities for learning that accommodate students seeking technical training and higher education. CCC has a history of distinction in the level of accessibility, quality, and affordability. A variety of associate degrees, technical-vocational certificates, university parallel (transfer) programs, and individual courses for enrichment are provided on campus and through distance education. The education available at CCC is an excellent foundation to continuing academic studies.

What does the Industrial Program offer?
CCC’s Industrial Technology program teaches the fundamentals of the operation and maintenance of complex industrial systems. Industrial technology students are exposed to a wide variety of maintenance and operations coursework, providing students with a unique blend of training for a high wage and in-demand field. This program provides two areas of concentration constructed around industry demands. These areas of concentration are Plant Operations and Equipment and Wind Energy. Associate of Applied Science degrees are available in each concentration. If students choose to complete only the Program and Related Requirements of a particular track, they are eligible for a Certificate of Completion in the respective concentration. In addition to this, five Letters of Qualification can be earned by taking a subset of classes in a specialty area. For more information click here.

Industrial Revenue Bonds

The City of Clovis and Curry County can issue Industrial Revenue Bonds (IRB) for the expansion and relocation of commercial and industrial projects.  Significant property tax and compensating tax exemptions can occur through the use of an IRB. An IRB is a loan from the bond purchaser to a company where the loan proceeds and repayment flows through a governmental issuer. Instead of purchasing a facility directly, companies can enter into a lease with the issuer, provided the company will lease the facility from the issuer and, at the end of the lease, purchase the facility from the issuer for a nominal amount.

IRBs generally range from 50% for 20 years to 75% for 30 years.

The benefit of remaining property tax exemptions can be passed on to the new owner or flow through a lease in event of a sale or lease to a new user, under certain qualifying conditions.  City council must vote to induce an IRB, and the community does not lend its credit to an IRB.  The company must secure its own purchase of IRBs or the company can purchase its own IRB.

Assume a company invests $10 million in Clovis: $5 million in land and building, and $5 million in equipment purchased out of state:

Tax Exemption 

Calculation

Value

Property Tax Exemption on Land and Building

($5,000,000/3) x 0.045951

$76,585

Nominal value for 20 years:

$76,585 x 20 years

$1,531,700

Property Tax Exemption on Equipment (first year)

($5,000,000/3) x 0.045951

$76,585

Nominal value for 7 years

(Depreciated value/3) x 0.045951

$306,340

Tax Exemption on Equipment

$5,000,000 x 0.05

$250,000

Property Tax Abatement

New Mexico communities can choose to abate all property taxes on a plant location or expansion up to 30 years, subject to the discretion of the local community. This is not a tax freeze but a true abatement on building, land and equipment. While state law allows this incentive, each city or county government controls this tool. At the end of the abatement period, the company will be faced with paying relatively low property taxes as New Mexico property taxes are the 49th lowest in the nation.

Gross Receipts Tax Incentive

The City of Clovis has a 1/8 gross receipt tax, the proceeds of which are used for economic development incentives, including infrastructure development.

Community Development Incentive Act

(Referred to as “IRB-Lite”), new business facilities may be qualified to receive a property tax exemption on commercial personal property (equipment) up to 20 years.