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Technology Incentives

Research & Development Tax Deduction
Rural Software Tax Deduction

Also see these Across the Board Incentives
Technology Jobs Tax Credit
Research & Development Small Business Tax Credit

For more information or a free custom analysis of tax incentives for your company, call 800-226-2935 or email us .

Research & Development Gross Receipts Tax Deduction

To encourage the growth of research and development service companies, the state offers a gross receipts tax deduction for receipts from selling any service performed in New Mexico that is exported from the state to a buyer outside of New Mexico, even if the buyer has a New Mexico office or facility, as long as:
  • The product of the service is delivered to the buyer out-of-state; and,
  • The product of the service is initially used by the buyer for its intended purpose outside of New Mexico.

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Rural Software and Web site Gross Receipts Tax Deduction

In an effort to stimulate new business development in rural New Mexico, the state legislature enacted a gross receipts tax deduction for software and Web site companies in rural New Mexico. The Metro New Mexico communities of Belen, Los Lunas and Estancia Valley qualify as rural for purposes of this tax deduction. The deduction:
  • covers receipts from selling custom software design and development and Web site design and development services.
  • applies to businesses located anywhere in the state except in a municipality with a population of more than 50,000.
  • applies only to businesses established after July 1, 2002.
  • doesn't apply to receipts from selling software implementation or support services
  • cannot be used by businesses with a second office in a metropolitan area.

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