New Mexico offers a variety of incentives to attract and support businesses within the state.  These programs are designed to foster economic growth, job creation, and innovation in key sectors such as technology, manufacturing, energy, and agriculture.  New Mexico’s incentive programs range from tax credits to grants and loan programs, providing businesses with the tools they need to succeed.  Below are some of the key business incentives available in New Mexico.

New Mexico Job Training Incentive Program (JTIP)

Overview

JTIP is designed to encourage businesses to hire and train employees in high-wage, high-skill jobs.  The program supports training costs for businesses across a variety of industries, including manufacturing, technology, and service sectors.

Eligibility

• The business must be based in New Mexico and create new, full-time, permanent jobs.

• The business must meet wage standards set by the state, which are typically higher than the average wage for the area.

• Training must be provided for employees hired for new positions or to improve skills in existing roles.

Incentive Value

• JTIP covers up to 75% of the costs associated with employee training, including wages, tuition, and instructor fees.

• The amount of funding is based on the number of jobs created, the wages of those jobs, and the region in which the business operates.

Application Process

Businesses must apply through the New Mexico Economic Development Department (NMEDD), providing a detailed training plan and financial projections for the new jobs.

New Mexico High Wage Jobs Tax Credit

Overview

The New Mexico High Wage Jobs Tax Credit is designed to attract businesses that create high-paying jobs in the state.  This program incentivizes businesses to create jobs that pay above-average wages and provide benefits to workers.

Eligibility

• The business must create at least five new full-time jobs within a 12-month period.

• The new jobs must pay at least 150% of the state’s average wage.

• The business must meet other requirements based on industry and location.

Incentive Value

• The program offers a tax credit of 10% of the new wages paid to employees in qualifying jobs.

• The value of the tax credit is capped at $12,000 per new employee, with additional incentives available in targeted economic areas.

Application Process

Businesses must apply through NMEDD, providing proof of job creation, wage rates, and business plans.

New Mexico Research and Development (R&D) Tax Credit

Overview

The New Mexico R&D Tax Credit supports businesses involved in innovative research and development activities by offering a tax credit on qualifying R&D expenditures.  The credit is designed to encourage companies to invest in new technologies and processes.

Eligibility

• The business must conduct research and development activities in New Mexico.

• The R&D activities must focus on the development of new or improved products, services, or technologies.

• The business must incur eligible R&D expenses, including wages, supplies, and contract research.

Incentive Value

• The program offers a tax credit of up to 9% of qualifying R&D expenses.

• The credit is refundable for smaller businesses and can be carried forward for up to 15 years.

Application Process

Businesses must apply to the New Mexico Taxation and Revenue Department (TRD), providing documentation of R&D activities and expenditures.

New Mexico Economic Development Department (NMEDD) Tax Incentive Programs

Overview

NMEDD offers several tax incentive programs aimed at encouraging businesses to expand or relocate to the state.  These programs are designed to support the creation of jobs, investment in infrastructure, and overall economic growth.

Eligibility

• The business must meet specific investment and job creation criteria set by NMEDD.

• The business must operate in a targeted industry such as manufacturing, technology, or energy.

Incentive Value

• Programs include tax credits, property tax abatements, and exemptions from gross receipts taxes.

• Incentives vary based on the size of the investment, the number of jobs created, and the location of the business.

Application Process

Businesses must apply through NMEDD, providing a business plan and details of their planned investments and job creation.

New Mexico Rural Job Tax Credit

Overview

The New Mexico Rural Job Tax Credit incentivizes businesses to create jobs in rural areas of the state.  This program targets underserved regions to promote economic development and reduce unemployment in rural New Mexico communities.

Eligibility

• The business must create new, full-time jobs in a designated rural area of New Mexico.

• The new jobs must pay above the average wage for the region.

• The business must make significant investments in infrastructure, equipment, or facilities.

Incentive Value

• The program offers a tax credit of up to 10% of wages paid to employees in qualifying jobs.

• The program also provides credits for capital investments in rural areas.

Application Process

Businesses must apply through NMEDD, submitting job creation projections, wage rates, and details of capital investments.

New Mexico Film Tax Credit

Overview

The New Mexico Film Tax Credit is aimed at attracting film, television, and digital media productions to the state.  The program offers significant tax credits to businesses involved in qualifying production activities, from feature films to commercials and video game development.

Eligibility

• The business must engage in the production of a feature film, television show, commercial, or digital media project.

• The production must take place in New Mexico and meet certain spending requirements, including wages and equipment costs.

Incentive Value

• The program offers a tax credit of up to 25% of qualified production expenditures.

• Additional credits are available for productions that include specific New Mexico-based vendors or crew members.

Application Process

Businesses must apply through the New Mexico Film Office, providing a production budget, financial details, and documentation of eligible expenses.

New Mexico Opportunity Zone Program

Overview

The New Mexico Opportunity Zone Program incentivizes investments in low-income communities across the state.  This program provides tax advantages for businesses and investors that contribute to the revitalization of Opportunity Zones.

Eligibility

• The business must invest in property or equipment located in a designated Opportunity Zone.

• The business must meet job creation, investment, and other criteria set by the state.

Incentive Value

• The program offers tax incentives including capital gains tax deferrals and credits.

• Investors can benefit from tax exclusions on gains from qualified investments in Opportunity Zones.

Application Process

Businesses must apply through NMEDD, submitting documentation of the planned investment and expected economic impact.

New Mexico Green Jobs Tax Credit

Overview

The New Mexico Green Jobs Tax Credit promotes environmentally sustainable business practices by offering tax incentives to companies that invest in green technologies, energy efficiency, and renewable energy systems.

Eligibility

• The business must be involved in energy efficiency, renewable energy, or other green technologies.

• The business must meet specific energy and environmental standards set by the state.

Incentive Value

• The program offers tax credits for capital investments in energy-efficient equipment and renewable energy systems.

• Credits can offset business income taxes and other state liabilities.

Application Process

Businesses must apply through the New Mexico Energy, Minerals and Natural Resources Department, providing details of their green projects and energy savings.