Since the 1930’s, New Mexico has been a world leader in scientific research and energy development. Our national laboratories and federal and academic research facilities have conducted experiments in a wide array of disciplines from nuclear weapons and defense systems, to aerospace, bioscience and nanotechnology.

New Mexico’s scientific infrastructure is the result of a strong federal presence, a collection of research institutions, and the highest level of non-industry research and development investment in the nation. Many of these federal and state-funded laboratories and educational research facilities offer opportunities for private sector companies to partner through collaborative research and development agreements (CRADAs), lease one-of-a-kind research facilities, and access licensable technologies.

Being home to such a diverse convergence of laboratories, research entities, and private developers makes New Mexico an attractive place for technology-intensive businesses to locate. Among the state’s highly regarded facilities are:

• Sandia National Laboratories – Centrally located in Albuquerque, Sandia National Laboratories is a leading government R&D laboratory, focusing on nuclear weapons technology and security, energy, climate and infrastructure security, defense systems, and homeland security.
• Los Alamos National Laboratory – Los Alamos National Laboratory, located less than an hour’s drive from Santa Fe, is a premier national security research institution focused on delivering scientific and engineering solutions for the most crucial and complex problems including the advancement of bioscience, chemistry, computer science, earth and environmental sciences, materials science, and physics.
• Spaceport America – New Mexico is home to the world’s first purpose-built commercial spaceport. Located in Sierra County, Spaceport America is intended to host a variety of space activity, including commercial space flights, payload launches, experimental racing teams and research centers.
• White Sands Missile Range – White Sands Missile Range in Southern New Mexico provides Army, Navy, Air Force, Department of Defense, and private industry customers with high quality services for experimentation, test, research, assessment, development, and training.

---

Emerging Technology Tax Incentives

Technology Jobs Tax Credit

1. Expenditures: Includes a wide range of non-reimbursed expenses such as payroll, consultants and contractors performing work in New Mexico, software, equipment, technical manuals, rent, and operating expenses of facilities.
2. Research: Must be technological in nature and constitute elements of a process of experimentation leading to new or improved function, performance or reliability (not cosmetic, style).
3. Facility: A building or group, with land and machinery, equipment and other real or personal property used in connection with the operation of the facility; excludes national labs.

1. Basic credit: The taxpayer claims the credit within one year following the end of the year in which the expenditure was made. The credit amount is applied against the taxpayer’s state gross receipts, compensating and withholding liabilities until the credit is exhausted.
2. Additional credit: A taxpayer earns the additional credit by increasing its payroll. The annual payroll must increase by at least $75,000 over the base period and by at least $75,000 for each $1 million in qualified expenditures (equivalent to $40,000 in credit) it wishes to claim. The base period floats; it is defined as the 12-month period ending on the day one year prior to the day the taxpayer applies for the additional credit. The base period payroll amount is also to be adjusted for inflation so that merely keeping up with the inflation will not earn any credit. The credit is not refundable, but excess credit amounts may be carried forward.

R&D Small Business Tax Credit

1. Employs no more than 25 employees in any prior calendar month
2. Had total revenue of no more than $5 million dollars in any prior fiscal year.
3. Did not in any prior calendar month have more than 50% of its voting securities or other equity interest with the right to designate or elect the board of directors or other governing body of the qualified business owned directly or indirectly by another business
4. Has made qualified research expenditures for the period of 12 calendar months ending with the month for which the credit is sought of at least 20% of its total expenditures for those 12 months.

Angel Investment Credit