Incentives

The vibrant Metro New Mexico business climate encourages strong, healthy industries. The New Mexico state government offers a variety of financial incentives, including tax free industrial revenue bonds and tax breaks for small businesses to large corporations, as part of its commitment to developing its economic base. The corporate incentives and rewards are available to existing New Mexico businesses as well as those new to the state, and some incentives are enhanced for rural areas. Along with these incentives are a host of other advantages for expanding, new and relocating businesses. We are happy to discuss specific opportunities to meet your needs. Just email us or call 800-226-2935.

The cornerstone of New Mexico’s incentives is the Job Training Incentive Program (JTIP). In FY 2007, JTIP received $8 million in funding. New Mexico is able to pay half or more of the salary of new hires for up to half a year. Since the program's inception in 1972, it has funded 35,000 workers in 600 companies.

In addition to a rich incentive program, in 2003 the New Mexico Legislature enacted a major phased-in personal income tax reduction. The cuts reduce the top marginal personal income tax rate from 8.2% to 4.9% by 2008. For 2006 and 2007, the top rate is 5.3%.

Additionally, the State of New Mexico has some of the lowest property tax rates in the nation. Franchise taxes are only $50 a year and New Mexico has no property transfer tax. These financial advantages, plus an aggressive build to suit program, one stop information resources and foreign trade zones, make New Mexico more than an enchanting place to do businesses: they make it easy.

Note: Incentive details are provided for information purposes only. The information should not be relied upon as legal advice or a legal opinion for any specific facts or circumstances. For a complete analysis for individual fact situations we recommend that the reader consult with a qualified state tax lawyer or accountant.

Exemptions and Deductions both allow you to subtract dollars from your tax base before calculating the tax due. An Exemption means that the exempt receipts don’t have to be reported. A Deduction means that the deductible receipts must be reported, and then properly claimed. In contrast, a Credit reduces taxes due dollar-for-dollar; the credited amount is subtracted after calculating the tax.