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High Wage Jobs Tax Credit

Category: State Incentives, Tax Incentives


AGENCY: Taxation and Revenue Department
DESCRIPTION: The High-Wage Jobs Tax Credit provides a refundable tax credit to businesses for each high-wage job created.
ELIGIBLE USES:
•  The credit is equal to 10% of the salary and benefits of each qualifying economic-based job, up to $12,000 per employee.
•  May be claimed against gross receipts tax, compensating tax, or withholding tax for the year the job was created and the following three years.
•  In urban areas, qualifying jobs must pay at least $40,000 per year.
•  In rural areas, qualifying jobs must pay at least $28,000 per year.   

QUALIFICATION CRITERIA/COMMENTS:
•  The eligible employer has to apply to the Taxation and Revenue Department in the manner specified by the Department.
•  The credit may be deducted from the modified combined tax liability of a taxpayer. If the credit exceeds the modified combined tax liability of the tax payer, the excess will be refunded.
•  Urban areas are defined as a population greater than 40,000.
•  The qualifying job must have been occupied for at least 48 weeks.
•  See 7-9G-1 NMSA.
•  Visit the Taxation and Revenue Department homepage at http://www.state.nm.us/tax/home.htm or find paperwork and applications at http://www.state.nm.us/tax/BizPge.htm.
•  Call the office of the Secretary at (505) 827-0951.
 


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