Identifying Resources to
An eligible employer must file annually to apply for a high-wage jobs tax credit for each new high-wage job created on or after July 1, 2004 and before July 1, 2026, occupied during a qualified period beginning with the year the new job is created and for three consecutive qualifying periods. The amount of the credit is 8.5% of wages paid to an eligible employee in a high-wage job for a maximum credit of $12,750 per qualified period.
The Investment Credit Act provides a credit for certain equipment purchased or brought into New Mexico in connection with a manufacturing operation. The credit does have a specific employment requirement that is associated with the cost of the equipment being claimed. For applications submitted on or after July 1, 2020 but before July 1, 2030:
- You must have employed one additional full-time employee for every $750,000 (or portion of that amount) in value of qualified equipment for which the credit is claimed on the application, up to a value of $30 million, and
- You must have employed one additional full-time employee for every $1,000,000 (or portion of that amount) in value of
qualified equipment over $30 million.
For tax years beginning on January 1, 2020, if 80% or more of the property and payroll factors apportioned to New Mexico are employed in manufacturing, that taxpayer or filing group may elect to have business income apportioned to New Mexico by multiplying the income by the sales factor for the taxable year.
For tax years beginning on or after January 1, 2015, a filing group or a taxpayer that has a headquarters operation in New Mexico may elect to have business income apportioned to New Mexico using the sales factor for the taxable year.
A taxpayer who owns a dairy or feedlot and files an individual New Mexico income tax return for a taxable year between January 1, 2011, and January 1, 2030, may apply for a tax credit equal to $5/wet ton of agricultural biomass transported from the dairy/feedlot to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use.
For tax years beginning on or after January 1, 2007, a taxpayer who files a New Mexico personal income tax return, who is not a dependent of another individual, is an accredited investor and makes a qualified investment may claim a credit for 25% of the qualifying investment in a high-technology or manufacturing business. For tax years beginning on or after January 1, 2015, the credit allowed for each qualified investment shall not exceed $62,500.