A bill requiring an annual survey of exemptions, credits and deductions written into New Mexico's tax code cleared a Senate committee Wednesday.

New Mexico forgoes collecting about $1.3 billion in revenue each year thanks to more than 300 credits, exemptions and deductions that are in state law. But New Mexico is one of a handful of states that doesn't regularly survey how much the so-called tax expenditures cost the state coffers, or whether some of the exemptions, deductions and credits are of any use.

The so-called tax expenditure budget created by the legislation would "cover the holes in the Swiss cheese," Sen. Tim Keller, D-Albuquerque, the legislation's sponsor, said, referring to the state's tax code. The legislation would require an annual report.

The concept of a tax-expenditure budget is not new to the New Mexico Legislature. Similar legislation passed both chambers in 2007 only to die of a veto by then-Gov. Bill Richardson.

Both Republican and Democratic lawmakers rallied to the support of the bill during Wednesday's Corporation and Transportation Committee.

"I think it's a good idea," Sen. Mark Boitano, R-Albuquerque.

Several people attending the meeting also spoke up for the bill, saying it gave the state the tools to find out whether all of the credits, exemptions and deductions written into the tax code are still of use.

Tax policy, including whether to close or reduce certain tax expenditures, has increasingly generated discussion during this year's legislative session as New Mexico officials try to close a shortfall projected between $200 million and $450 million. Some lawmakers argue that reducing or closing some tax expenditures could generate money to help address the budget shortfall.

So far, Gov. Susana Martinez has opposed that sort of talk, although she herself wants to lower from 25 percent to 15 percent the refundable tax credit New Mexico gives to film and TV production companies that meet certain requirements. Last year, film and TV production companies received $65.9 million through the film production tax-credit program.

Opponents of reducing the film-production tax credit say the state should scrutinize the entire tax code, and not just one program. And they point to the more than $134 million that went to the oil and gas industry through various breaks last year.

None of that broader discussion surfaced during lawmakers' discussion concerning Keller's bill Wednesday.

The committee wasn't as amenable to another of Keller's bills. That piece of legislation would have required corporations, businesses and other organizations to itemize on their tax returns how much money they forgo paying each year to the state due to their use of exemptions to the state's gross-receipts and withholding taxes.

"It's a small tax fix," Keller said.

But Tom Clifford, policy director for the New Mexico Taxation and Revenue Department, opposed the legislation.

"Quite simply, we can't do this," Clifford told lawmakers. It would add so much work to the department's staff that it would "bog down the system."

Contact Trip Jennings at 986-3050 or at tjennings@sfnewmexican.com.