Category: State Incentives, Tax Incentives
AGENCY: Taxation and Revenue Department
DESCRIPTION: Employers in rural areas will be entitled to a tax credit when expanding their work force.
• The Economic Development Department will determine which employers are eligible and will report the listing to the Taxation and Revenue Department.
• Maximum Program Benefits:
• Modified combined, personal or corporate income tax credit;
• The maximum credit is 6.25% of the first $16,000 wages paid for the qualifying job;
• Employers located in Tier One (population of 15,000 or less) may claim the credit for four qualifying periods; and
• Employers located in Tier Two (population over 15,000, but still considered rural) may claim the credit for two qualifying periods.
• A job established by the employer that is occupied by an eligible employee for at least 48 weeks of a qualifying period.
• The period of 12 months beginning on the day an eligible employee begins working in a qualifying job or the period of 12 months beginning on the anniversary of the day an eligible employee began working in a qualifying job.
• Legislation specifies that a company must have been awarded Job Training Incentive Program (JTIP) funds to qualify for the tax credit, but specific jobs within a company do not have to meet JTIP requirements.
• The credit may be carried forward for up to three years and may be sold, exchanged or transferred.
• See 7-2E-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.