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Governor signs tax break for BNSF in New Mexico

SANTA FE, N.M. (AP) -- A newly enacted law in New Mexico will provide a tax break to lower the cost of locomotive fuel for the BNSF Railway Co.

Gov. Susana Martinez signed legislation into law on Tuesday to extend the incentive to BNSF if it spends at least $50 million to upgrade tracks, signals or other facilities in the state.

The company has nearly 1,400 workers in New Mexico and railyards in Albuquerque, Belen and Clovis.

The new law takes effect in July, and offers BNSF a tax break similar to that provided in 2011 to the Union Pacific Corp.

New Mexico agreed to lift gross receipts and compensating taxes from locomotive fuel for Union Pacific if it invested at least $100 million on a terminal facility near Santa Teresa.