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A bold, new incentive created in 2004 by Governor Richardson and the New Mexico Legislature, this tax credit equals 10 percent of the wages and benefits for each new economic-base job created. Qualified employers can receive the credit for up to four years. Espanola software company Computer Assets and Taos’s new insurance call center CiDirect are just two companies who qualify for the credit.
A taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-wage, economic-based job. The credit amount equals 10 percent of the wages and benefits paid for each new economic-base job created.
Qualified jobs:
- Pays at least $28,000/year in a community with a population of less than 40,000
- Pays at least $40,000/year in a community with a population of 40,000 or more
- Created on or after July 1, 2004 and prior to July 1, 2009 and is occupied for at least 48 weeks by the employee
Qualified employers can take the credit for four years. The credit can be applied to the state portion of the gross receipts tax, compensating tax, and withholding tax. Any excess credit will be refunded to the taxpayer. The credit shall not exceed $12,000 per year, per job.
To qualify, an employer must:
- make more than 50 percent of its sales to persons outside New Mexico during the most recent 12 months of the employer’s modified combined tax liability reporting periods ending prior to claiming this credit
- be eligible for the Job Training Incentive Program (manufacturing facilities and non-retail services industries)
- be growing, with employment greater than the year before
To qualify, an employee must:
- be a resident of New Mexico
- not be a relative of the employer or own more than 50 percent of the company
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