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Greater Belen EDC
100 South Main St
Belen NM 87002
(505) 864-8221
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INCENTIVES
Incentives for Rural Communities:
Rural Jobs Tax Credit
Employers in "rural areas are entitled to a modified combined, personal or corporate income tax credit when expanding their work force - the Rural Jobs Tax Credit. The maximum credit is $4,000 per job created in a Tier One area (population of 15,000 or less) and $2,000 per job created in a Tier Two area (population over 15,000 but still rural). Albuquerque, Las Cruces, Rio Rancho and Santa Fe do not qualify Only companies that qualify for the Job Training Incentive Program assistance are eligible for this credit. The credit may be carried forward for up to three years and may be sold, exchanged, or transferred.
Rural Software Tax Deduction
A taxpayer whose primary business is providing software development services and who had no business location in New Mexico other than in a qualified area during the period for which a deduction under this section is sought. The company must have been established after 7/1/02. Software development services include custom software design and development and web site design and development, but does not include software implementation or support services.
Technology Jobs Tax Credit
The purpose of the "Technology Jobs Tax Credit Act is to provide a favorable tax climate for technology-based businesses engaging in research, development, and experimentation. There are two types of credits, a "basic credit and an "additional credit. The tax credits for rural areas are doubled.
- The basic credit is equal to 4% of allocable expenditures made after July 2000 related to qualified research at a qualified New Mexico facility for depreciable land, rent, buildings, equipment, computer software and upgrades, technical books and manuals, test materials, consultants, and subcontractors performing work in New Mexico. The credit may be taken against gross receipts tax, compensating tax or state payroll tax.
- The additional credit is equal to the credit established for the basic credit that may be applied to state tax. However, the credit would require the taxpayer to increase its base payroll expense by $75,000 for every $1 million of investment for which the credit is claimed. For example: For every increase in payroll of $75,000 the company is entitled to an additional credit of $40,000.
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More on New Mexico's Business Incentives at :
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