Industry Specific Incentives
The incentives in this section apply to specific industries. Find your category below:
Aviation & Aerospace Incentives
Energy Incentives
Technology & Electronics Incentives
Manufacturing Incentives
Digital Business & Media Incentives
Operations Centers Incentives
Aviation & Aerospace Incentives
Aerospace Research & Development Tax Deduction
Receipts from selling R&D services performed in New Mexico and sold to the U.S. Air Force are deductible from gross receipts.
Aircraft Manufacturing Tax Deduction
Receipts from the sale of aircraft by an aircraft manufacturer are deductible from gross receipts.
Aircraft Refurbishing and Remodeling Tax Deduction
Receipts from refurbishing, remodeling or modifying aircraft over 10,000 pounds in New Mexico are deducible from gross receipts.
Space Operation Deduction
Receipts from launching, operating or recovering space vehicles or payloads in New Mexico or preparing payloads and operating a spaceport in New Mexico are deductible from gross receipts.
Aerospace & Military Research And Testing Compensating Tax Deductions
Deductions from compensating tax for use in aerospace and military research and testing activities within New Mexico.
Energy Incentives
Alternative Energy Product Manufacturers’ Tax Credit
This tax credit was created by the State of New Mexico to encourage the manufacturing of “advanced energy products.” Manufacturers can receive a 5% credit on their equipment. The credit went into effect July 1, 2007.
Renewable Energy Production Tax Credit
Provides $0.01/kwh corporate income tax credit for for 10 years for the first 400,000 mwh of electricity produced each year by a renewable energy facility using wind, solar or biomass energy.
Biomass-Related Equipment Compensating Tax Deduction
The value of biomass-related equipment may be deducted in computing compensating tax due.
Energy Efficiency and Renewable Energy Bonding Act
The state can issue bonds for $20 million in energy efficiency upgrades.
The Efficient Use of Energy Act
Public utilities required to evaluate the potential for energy efficiency improvements and implement programs to increase energy efficiency.
Clean Energy Grants Program
Appropriates $3 million for grants for clean energy projects and hydrogen energy technology for municipalities and other eligible community, tribal, and state entities.
Technology & Electronics Incentives
Technology Jobs Tax Credits
Tax credits up to 8% of expenditures (including payroll) available for research and development in urban areas, doubling to 16% in rural communities.
Research & Development Gross Receipts Tax Deduction
R&D services exported from the state are deductible from the gross receipts tax.
Research & Development Small Business Tax Credit
Qualified small businesses receive a tax credit equal to the sum of all gross receipts, compensating and withholding taxes due if at least 20% of their total annual expenses are for R&D.
Rural Software and Web site Gross Receipts Tax Deduction
Receipts from software and web development services located in rural New Mexico are deductible from the gross receipts tax.
Manufacturing Incentives
Manufacturing Investment Tax Credit
A 5% tax credit is available on cost of qualified manufacturing equipment.
Double-Weighted Sales Factor Option for Corporate Income Tax
Favorable formula created for calculating New Mexico corporate income tax liability for manufacturing corporations that export products outside of New Mexico.
Digital Business & Media Incentives
Film Production Tax Credit
A refundable credit on owner's personal or corporate income tax return up to 25% of total direct production costs incurred in New Mexico.
Filmmaker Gross Receipts Tax Deduction
Provides for a gross receipts tax deduction for film production costs purchased in New Mexico.
Film Investment Program
Allows the State of New Mexico to invest in a New Mexico film project or a New Mexico film private equity fund.
Web Hosting Gross Receipts Tax Deduction
Receipts from hosting websites are deductible from gross receipts.
Operations Centers Incentives
Telemarketing Tax Exemptions and Deduction
Telemarketing operations that process orders and inquiries are exempt from both gross receipts tax and the interstate telecommunications gross receipt tax.
