NEW MEXICO INCENTIVES
New Mexico shows an average deal value of $0.23 million with 41 new jobs created per deal
RURAL JOBS TAX CREDIT
Qualified employers locating in a rural area and approved for the JTIP program are eligible to receive a tax credit (6.25% of the first $16,000 in wages), for up to four consecutive years. Rural New Mexico is defined as any part of the state other than Los Alamos, Albuquerque, Rio Rancho, Las Cruces and Santa Fe – and a 10 mile zone around municipalities. Unused credit may be carried forward for up to three years.
HIGH-WAGE JOBS TAX CREDIT
Provides a tax credit equal to 10% of the combined value of salaries and benefits for each new job paying a minimum of $28,000 per year in areas with populations less than 40,000 persons. Companies locating in larger areas must pay salaries of $40,000 to receive the credit. Credit is for up to four years and any excess credit will be refunded to the business. The credit shall not exceed $12,000 per year, per job. The credit is applied against the businesses tax liability, including the state portion of gross receipts tax, compensating tax and withholding tax.
MANUFACTURERS INVESTMENT TAX CREDIT
Provides tax credits of 5% of the value of qualified equipment and other property used in their operation to be applied against compensating, gross receipts or withholding tax, up to 85% of the total. Any remaining available credit may be claimed in subsequent reporting periods. To qualify, the company must add one new job for each credit, up to $30 million; and one new employee must be hired for each $500,000 in equipment.
TECHNOLOGY JOBS TAX CREDIT
A tax credit is available for 4% of qualified research expenditures (8% in rural areas). The credit may be taken against gross receipts tax, compensating tax or state payroll tax, and may be carried forward. An additional 4% may be applied against state income tax if base payroll expenses are increased by at least $75,000 per $1,000,000 of expenditures claimed.
JOB TRAINING INVESTMENT PROGRAM (JTIP)
Provides companies with reimbursement for training costs associated for newly created jobs. Reimbursements typically range from 50%-80% of employee wages and travel expenses. Eligibility for JTIP funds depends on the company’s business, the role of the newly created positions in that business, and the trainees themselves.
OTHER NEW MEXICO INCENTIVE PROGRAMS
- Angel Investment Credit
- Consumables Gross Receipts Tax Deduction for Manufacturers
- Texas/New Mexico Border Residents’ Tax Exemption
- Aircraft Deduction
- Military Acquisition Program Tax Deduction
- Research & Development Tax Deduction
- Space Gross Receipts Tax Deductions
- Financial Management Tax Credit
- Film Post Production Services 25% Refundable Tax Credit
- Rural Software Development Gross Receipts Tax Deduction
- Web Hosting Gross Receipts Tax Deduction
- Advanced Energy Deduction & Advanced Energy Tax Credit
- Alternative Energy Product Manufacturer’s Tax Credit
- Biodiesel Blending Facility Tax Credit
- Biomass-Related Equipment & Materials Deduction
- Renewable Energy Production Tax Credit
- Locomotive Fuel Gross Receipts & Compensating Tax Exemption