Category: State Incentives, Tax Incentives
PROGRAM: Indian Intergovernmental Tax Credit
AGENCY: Taxation and Revenue Department
DESCRIPTION: A company engaged in growing, processing or manufacturing may receive a tax credit from taxes imposed by an Indian nation, Tribe or Pueblo located wholly or partly in New Mexico.
Maximum Program Benefits: The tax credit is 50% or the lesser of:
• The aggregate amount of tax paid by a taxpayer.
• The amount of the taxpayer’s corporate income tax due for the reporting period from the new business’s activity conducted on Indian land.
• The tax credit is limited to income from a new company established on tribal land after July 1, 1997.
• The tax credit is non-refundable and can be applied against the existing tax liabilities only; an excess can be carried forward.
• The burden of showing entitlement to this credit lies with the taxpayer claiming it.
• For a taxpayer who qualifies and conducts business outside of Indian land: the corporate income tax liability of the products of one-half of the taxpayer’s New Mexico corporate income tax liability before application of the credit provided by section 7-2A-16 multiplied by the payroll factor and one half of the taxpayer’s New Mexico corporate tax liability before application of the credit provided here, multiplied by the property factor.
• for specifications on these factors.
• Visit the Taxation and Revenue Department homepage at http://www.state.nm.us/tax/home.htm or call the office of the Secretary at (505) 827-0951.