Technology Jobs Tax Credits
Aimed at supporting New Mexico's high technology industries, the Technology Jobs Tax Credit Act provides two tax credits tied to taxpayer expenditures for internal technological research and related increases in payroll expenditures.
- “Basic Credit”
- 4% of qualified research expenditures.
- Claimed against gross receipts, compensating and withholding tax.
- Carries forward if not exhausted;not refundable.
- “Additional Credit'
- 4% of qualified research expenditures if taxpayer increases payroll expense over prior year by at least $75,000 for every $1,000.000 in qualified expenditures.
- Claimed against corporate or personal income tax.
- Carries forward if not exhausted; not refundable.
- Credits Doubled in Rural Areas (such as Los Lunas, Belen and the Estancia Valley)
- Qualified Research
- Technological research and experimentation in New Mexico to develop new or improved business component of the taxpayer.
- Not research at a facility operated by the taxpayer for any arm of the federal government, contract research for others or research paid for with grant money.
- Qualified Expenditures
- Taxpayer expenditures related to qualified research in New Mexico including the cost of land and facilities, improvements, computer-related expenses, consultants and contractors performing work in New Mexico and payroll.
- Not property purchased under an Industrial Revenue Bond, property supporting a claim for the Manufacturing Investment Tax Credit.
- Subject to Recapture Provisions
For more information or a free custom analysis of tax incentives for your company, call 800-226-2935 or email us .
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