New Mexico Gov. Susana Martinez (R) last week signed a bill offering the Air Force a deduction on the gross receipts tax it would be charged for construction services and materials needed for Holloman AFB to accommodate an expanded and permanent F-16 fighter pilot training mission. The measure would apply to five planned construction projects estimated to cost $15.4 million, reports the Alamogordo News. The economic impact of adding 638 permanent civilian jobs and 350 to 400 military families “will more than make up for [the tax break for] many more years to come,” said state Sen. Bill Burt (R).
The new law also should enhance Holloman’s military value in a future BRAC round as defense officials have noted the installation’s high construction costs during past BRACs. “This will address some of that,” Burt said. “The biggest competitors for this training mission are Arizona and Texas. If we can take that 6.3 percent off of that, theoretically the contractors will take that off of their bill. Now we’ve become a little more competitive with the cost of construction. Hopefully it eliminates one of the red marks we may have to get that mission here.”
Air Force photo by Staff Sgt. Stacy Jonsgaard