Tax Incentives & Financial Assistance
Tax incentives
- Corporate Income Tax Incentives: New Mexico's corporate income tax rate is competitive, and businesses involved in manufacturing or headquarters operations may qualify for additional tax reductions.
- Single Sales Factor Apportionment: This tax provision allows multistate corporations to apportion corporate income tax based solely on the sales made within New Mexico, reducing tax burdens for companies with operations in multiple states.
- Gross Receipts Tax Deductions: New Mexico offers deductions for manufacturing, research and development, and certain services performed for out-of-state clients.
- High-Wage Jobs Tax Credit: Businesses creating high-paying jobs may qualify for a tax credit equal
to 8.5% of the wages and benefits of each qualifying job.
Strategic Location and Infrastructure
- Opportunity Zones: Businesses located in federally designated Opportunity Zones in New Mexico can benefit from long-term tax deferrals and other investment incentives.
- Transportation and Infrastructure Support: The state offers assistance for businesses relying on logistical advantages, including proximity to major interstates, rail lines, and airports.
Industry-Specific Incentives
- Technology Jobs Tax Credit: High-tech businesses conducting R&D or other technology-related activities can receive tax credits for qualified expenditures.
- Film and Media Incentives: New Mexico is a global leader in film production, offering rebates and tax credits for media and production companies.
- Renewable Energy Incentives: Generous credits and rebates are available for companies in renewable energy sectors, including wind, solar, and bioenergy.
Business-Friendly Resources
- Economic Development Toolbox: The New Mexico Economic Development Department (NMEDD) offers consulting services, data, and tools to guide businesses through the relocation process.
- Site Selection Assistance: Programs help businesses identify optimal locations, evaluate infrastructure availability, and connect with local community resources.
Financial Assistance
Job Training Incentive Program (JTIP): This award-winning program reimburses 50% to 75% of employee wages for on-the-job training and classroom instruction for newly created positions.
Local Economic Development Act (LEDA): Provides funds for infrastructure development, land acquisition, and other critical needs to attract and support business relocation or expansion.
New Market Tax Credits: Encourages private investment in underserved communities by providing federal tax credits to investors.
Industrial Revenue Bonds (IRBs): These bonds offer significant property tax and gross receipts tax
abatements to businesses that make substantial capital investments.