New Mexico State Tax Credits

More ways to save your hard-earned money from the tax man!

New Mexico has some great State Tax Credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
New mexico

New Mexico High-Wage Jobs Tax Credit (HWJTC)

Overview:
The HWJTC provides refundable tax credits to New Mexico businesses that create and retain high-paying jobs, offering a valuable incentive for companies committed to long-term employment growth.

Who It’s For:
Manufacturing or non-retail businesses in New Mexico looking to grow their workforce with full-time, well-paid local employees and participate in the Job Training Incentive Program (JTIP).

Four Key Highlights:

  1. Refundable Credit Up to $12,750 Per Job
    – Earn an 8.5% credit on wages per qualified position, refundable even beyond tax liability, for up to four years per employee.

  2. High-Wage Thresholds Must Be Met
    – Jobs must pay at least $40K/year in rural areas or $60K/year in urban areas, with employees working a minimum of 44 weeks.

  3. Eligibility Tied to Workforce Growth
    – The company must show a net year-over-year increase in jobs and participate in JTIP; construction and extraction industries are excluded.

  4. Application Timing Is Critical
    – Claims must be filed within 12 months after the qualifying employment period ends, and only after the employee has worked for 12 months.

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New Mexico Rural Jobs Tax Credit

Overview:
The Rural Jobs Tax Credit rewards businesses in rural New Mexico that create new, long-term jobs by offering tax credits based on wages paid. The incentive aims to stimulate employment and economic development outside major metro areas.

Who It’s For:
Manufacturers, production businesses, green industries, and non-retail service providers in rural parts of New Mexico that create new jobs and maintain them for nearly a full year.

Four Key Highlights:

  1. Tiered Credit Structure Based on Location
    – Tier 1: 25% of the first $16,000 in wages, claimed at $1,000/year for 4 years.
    – Tier 2: 12.5% of the first $16,000 in wages, claimed at $1,000/year for 2 years.

  2. Applies to Multiple State Taxes
    – Credit can offset Gross Receipts Tax (GRT), Corporate Income Tax, or Personal Income Tax.

  3. Strict Geographic and Job Requirements
    – Only businesses outside of large cities and their surrounding zones qualify, and each job must be filled for at least 48 weeks.

  4. Carryforward Option Offers Flexibility
    – Unused credits can be carried forward for up to 3 years, giving businesses more time to utilize the full benefit.

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New Mexico Angel Investment Tax Credit (AITC)

Overview:
The Angel Investment Tax Credit encourages accredited New Mexico investors to support early-stage businesses in the state through a 25% state income tax credit on qualified investments, with the aim of boosting innovation and job creation.

Who It’s For:
Accredited New Mexico investors funding in-state startups engaged in qualified research or manufacturing—and New Mexico-based businesses seeking private capital.

Four Key Highlights:

  1. 25% Credit Up to $62,500 per Investment
    – Investors can claim up to five credits per year, with each investment eligible for a credit of up to $62,500.

  2. Eligibility Tied to In-State Presence
    – Companies must have the majority of both employees and investment activity located in New Mexico and be engaged in qualified R&D or manufacturing.

  3. Annual Program Cap of $2 Million
    – Credits are issued on a first-come, first-served basis; excess claims are rolled into the next year’s allocation.

  4. Five-Year Carryforward, No Refunds
    – While the credit is non-refundable, unused amounts can be carried forward for up to five years for future tax offset.

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