The municipalities of Raton and Trinidad, and Colfax and Las Animas Counties have developed economic development incentive policies to attract and assist qualifying businesses and developers in growing the local economy. Below are summaries of potential incentives offered, qualifications for application, and supporting documentation. For full incentive policies and procedures, please review the full Economic Development Ordinances attached at the bottom of the page.

This information, extracted from the Local Economic Development Act - attached below - is a summary, for full details and complete text review the municipal websites, or contact Town Hall.

Local Incentives

Raton, NM

Potential Economic Development Incentives


1. The city may provide land, buildings, and infrastructure it already owns, or it may build, purchase or lease the facilities needed for an economic development project. 2. The city, at its discretion, may bear the full cost or contribute a portion of the costs including the waiver of applicable fees. 3. The city, at its discretion, may also contribute to the payment of costs for professional services such as industry feasibility studies and planning and design services needed to implement a project.




Qualifying Entities


An existing or proposed corporation, limited liability company, partnership, joint venture, syndicate, association, or other person that is one or a combination of 2 or more of the following: 1. An industry for manufacturing, processing, or assembling or any mining, agriculutral, or manufactured products; 2. A commercial enterprise for storing, warehousing, distributing, or selling products of agricultural, mining or industry, but other (5), (6) or (9), not including any enterprise for sale of goods or commodities at retail or for the dirstribution to the pubic of electricity, gas, water, or telephone or other services commonly classified as public utilities; 3. A business in which all or part of the activities of the business involves the supplying of services to the general public or to government agencies or to a specific industry or customer, but, other than provided in (5) or (9), not including businesses primarily engaged in the sale of good or commoditied at retail; 4. An Indian nation, tribe or pueblo or a federally chartered tribal corporation; 5. A telecommunications sales enterprise that makes the majority of its sales to persons outside of New Mexico; 6. A facility fo the direct sales by growers of agricultural products, commonly known as farmers' markets; 7. A business that is the developer of a metropolitan redevelopment project; 8. A cultural facility; and 9. A retail business.




Application Requirements


1. ​Any qualifying entity meeting the definition set forth in § 153.33 may propose an economic development project to the city. Meeting the definition of a qualifying entity does not create any obligation on the part of the city. 2. Applications from qualifying entities shall be submitted to the city on the LEDA Application form provided by the city. 3. Applications shall contain the following information for business applicants. A. Identification information: - Complete name and address of entity; - Incorporation papers with by-laws; - List of board of directors and executive director, with addresses; and - Resumes of all directors and officers. B. Evidence of financial solvency (personal statement of principals); - Financial statement (income statement and balance sheets) for the past 3 years; - Federal tax number, New Mexico state taxation and revenue number and county business license; and - Projected income statement for at least 3 years. C. Evidence of organizational capacity: - Brief history of the entity; - Organizational chart of the entity; and - Business plans for the entity and proposed project (shall include pro-forma cash flow analysis). D. The project participation agreement and any other pertinent information will be forwarded to the governing body for final consideration at a public meeting.




Review Criteria


1. Applications for economic development projects requesting economic assistance from the city, which meet the policies and objectives of the city's economic development plan, shall receive priority. Examples include, but are not limited to: - Manufacturing firms (including intellectual property such as computer software); - Projects, which enhance the exporting capacity of companies and/or provide goods and services, which currently have to be imported into Raton; - Private companies seeking to build, expand or relocate facilities; - Private companies which provide facilities or services which enhance the ability of Raton businesses to operate; - Organizations which assist business start-ups or bring small companies together to increase their competitive abilities. a.This must involve a tangible project, which will create jobs and promote an industry. --Examples include, but are not limited to: 1. Business incubators; 2. Art incubators or coalition (e.g. a performing arts coalition seeking construction rehearsal or performance facilities); 3. Public markets for farmers, gardeners, crafts, etc.; and 4. Organizations which foster economic development by promoting work force development efforts such as apprenticeships or other job training programs. -Projects in industry clusters listed above are particularly encouraged, but others are eligible to apply as well. The intention is to retain flexibility in the use of incentives; -Qualifying entities with existing contract or projects with the city when this plan is adopted may propose a restructuring of their projects as an economic development project. 2. All applications for economic development projects requesting economic assistance from the city shall submit a cost benefit analysis. Preparing a cost benefit analysis shall be the responsibility of the applicant. The city retains the right to specify a format and methodology for the cost benefit analysis. The REDC shall review and approve the methodology used. The source and rationale for any multiplier effects shall be identified. The cost benefit analysis shall show that the city will recoup the value of its donation within a period of 10 years. The analysis shall address the following: - The number and type of jobs to be created, both temporary construction jobs and permanent jobs (by New Mexico Department of Labor job category); - Pay scale of jobs; - Determination of which jobs are expected to be filled locally and which will be filled by transfers from other facilities or recruited from outside the Raton area; - Total payroll expected at start-up and after 1 year; - Anticipated impact on local tax base; and - Anticipated impact on local school systems. 3.All applicants for economic development projects requesting economic assistance from the city shall require the same review required of industrial revenue bond applications. This review shall focus on environmental and community impacts of proposed projects. Special attention shall be given to job training and career advancement programs and policies. Projects shall demonstrate a strong commitment to providing career opportunities for Raton area residents. Cultural impacts of projects shall also be considered. 4. Any qualifying entity seeking assistance shall prepare and make available a job training and career development plan for their employees. 5. All applicants for economic development projects requesting economic assistance from the city shall clearly demonstrate the benefits which will accrue to the community as a result of the donation of public resources. The city has considerable flexibility in determining what is considered as adequate benefits. Benefits such as providing components or production capabilities, which enhance a targeted industry cluster, or addressing critical deficiencies in regional economy, may be recognized. The benefits claimed of any proposal will receive careful scrutiny. However, it is the intent of this subchapter to be flexible in the evaluation of these benefits, and to recognize the qualitative as well as quantitative impact of a proposal. 6. All applicants for economic development projects requesting assistance from the county shall clearly demonstrate how the qualifying entity is making a substantive contribution. The contribution shall be of value and may be paid in money, in-kind services, jobs, expanded tax base, property or other thing or service of value for the expansion or improvement of the economy. The city retains flexibility in defining the "substantive contributions." The benefits identified in the previous divisions may be accepted as adequate contributions on their own, or as cash donations may be required. Assistance in providing affordable housing to its employees or the community at large may also qualify. Determination of what constitutes an acceptable contribution for a given project shall be at the discretion of the governing body.





Trinidad, CO

Potential Economic Development Incentives


1. Conveyance of real property owned by the city at no or reduced consideration; 2. Reduction, deferment or abatement of outstanding property tax; 3. Refund of general property tac, pursuant to CRS 39-30-107.5(1); 4. Refund of personal property tax, pursuant to CRS 31-15-903; 5. Property tax credit or Incentive Payment, pursuant to HB 02-1399; 6. Refund of sales tax levied by the City, pursuant to CRS 39-30-107.5(2); 7. Waiver or reduction of permit fees; 8. Waiver or reduction of utility tap fees; 9. Any other incentive deemed appropriate not specifically identified herein.




Incentive Considerations


In making an initial determination as to the appropriateness and extent of a development incentive offer and whether it is in the best interest of the city, the following factors shall be considered: 1. The size and fair market value of the improvements and business facilities that are proposed to be located in the City; 2. The number of employees that are proposed to be employed at the business site, the proposed educational and/or training requirements of the employees to be employed, whether or not the employees with be those already retained by the business or will be recruited from the City and the surrounding communities, and the projected salaries of those employees; 3. The impact the proposed business will have on the City's resources and infrastructure. Particularly, the business shall provide information regarding the amount of water that may be required to operate the business, the projected discharge of wastewater, and special wastes produced by the business that would require the availability of additional resources by the City, whether the business would require increased law enforcement resources, and/or whether the business would produce significant amounts of odor, noise, or dust pollution, and other impact upon the City's infrastructure due to the nature of the proposed business. 4. The financial ability of the proposed business ownership to build the improvements, connect to City infrastructure, or other considerations. The business ownership may be required to provide proof of such financial ability as part of an agreement for the provision of development incentives by the City. 5. Whither the proposed business is in conformance with the City's Comprehensive Plan and is of a character amenable to the City and the surrounding community. 6. Whether the business would result in a contribution to the economic diversity of the city. 7. Whether the proposed business will purchase materials and seek services from the City's existing businesses. 8. Any other factors determined to be peculiar to the proposed business.





Colfax County, NM

County Resources Available


1. Land the County is willing to lease, sell, or grant. 2. Buildings the County is willing to lease, sell, or grant. 3. Infrastructure the County is willing to build, extend, or expand. 4. Financial Resources Available - Industrial Revenue Bonds - Local Economic Development Act revenues




Qualifying Entities


An existing or proposed corporation, limited liability company, partnership, joint venture, syndicate, association, or other person that is one or combination of two or more of the following, that is current on any state tax liability: 1. An industry for manufacturing, processing, or assembling of any agricultural or manufacturing projects; 2. A Commercial enterprise for storing, warehousing, districting, or selling products of agriculture, mining, or industry, but other than provided in (4), not including any enterprise for the distribution to the public or electricity, gas, water, or telephone or other services commonly classified as public utilities.; 3. A business in which all or part of the activities of the business involves the supplying of services to the general public or to government agencies or to a specific industry or customer, but other than provided in (4), not including business primarily engaged in the sale of goods or commodities at retail; 4. A telecommunications sales enterprise that generates the majority of its sales to persons outside of New Mexico; 5. A facility for the first sales by growers of agricultural products, commonly known as farmers' markets; 6. A cultural facility; 7. A retail business; 8. An Indian nation, tribe, or pueblo or a federally chartered tribal corporation.




Application Process


The process for awarding economic development incentives is governed bu the County’s Economic Development Ordinance (Ordinance 2011-01). The basic steps in the process are as follows: 1. The County Manager or designee will meet the application to determine eligibility and to discuss the specific needs of the applicant. A preliminary plan of action will be established. 2. The applicant will submit a formal application for incentives on the form attached in this packet. 3. The application shall be accompanied by an application fee as established from time to time by resolution of the County Commission. This application fee is non-refundable. 4. The application shall be delivered to the Colfax County Manager’s Office for initial review and processing. 5. The review process shall include an evaluation of the applicant’s credit worthiness, business experience, and review of other information contained in the application based on the following factors: - Determine whether the project can be lawfully instituted, constructed, or operated with the county assistance proposed in the application. - Determine the financial and management ability of the application (and if the applicant is a subsidiary of another firm owning a majority of stock in the application, the parent firm), and its ability to perform the duties which will be imposed on the applicant as a result of the application. - Evaluate the financial feasibility of the project. - Verify the fact that the project will serve the benefit of the citizens of Colfax County. - Insure that the project will be capable of achieving those purposed stated in the application, including the applicant’s cost benefit analysis to the community. - Insure that the project conforms to the Colfax County Economic Development Plan. - Develop any other information the County Commissioner may deem necessary for a full review of the economic development project application. Upon completion of the review, the County Manager of designee shall a formulate a written report summarizing the findings of the review, credit analysis, and other merits of the project and shall submit the report to the County Commission. The report shall conclude with a recommendation to the Count Commission. The decision to fund the proposed project shall be made solely by the County Commission and shall be approved by ordinance. Upon approval by the Colfax County Commission, the County and the applicant will enter into a project participation agreement which shall set out the minimum contributions to made by each party, security provided to the County for the project or other requirement(s) as established by the County’s Economic Development Ordinance (Ordinance 2011-01) and the State of New Mexico Local Economic Development Act.





 

Colorado and New Mexico also offer state economic development incentives across a wide array of categories. Look below to find overviews, and links to more information.

 

CO State Incentives

Advanced Industries

What are considered Advanced Industries?


The following programs are designed to support job creation and innovation in your field as a business operating in one of Colorado’s seven advanced industries: - Advanced manufacturing - Aerospace - Bioscience - Electronics - Energy and natural resources - Infrastructure engineering - Technology and information In addition to credit, funding and job training programs, a set of five advanced industry grants make up the Advanced Industries Accelerator programs which are designed to promote growth and sustainability in these industries by helping accelerate commercialization, encourage public-private partnerships, increase access to early stage capital and create a strong ecosystem that increases the state’s global competitiveness. Learn more about these available opportunities by exploring the programs below. See more.




Advanced Industries Accelerator Programs


Proof of Concept Grant: This grant uses funding to identify and pull technologies from research institutions where they were discovered and connect them to the private sector where they can be developed into products for commercialization. Learn more. Early-Stage Capital and Retention Grant: This grant uses funding to support companies using technologies developed in proof of concept grants and other early stage start-ups that have created viable products that meet a market need and that can be created or manufactured in Colorado and exported globally. Learn more . Collaborative Infrastructure Funding: This grant uses funding to accelerate commercialization and innovation of advanced industry products and services by building capacity and workforce for the advanced industries ecosystem. The application for this grant is open once a year in the spring. Learn more. Export Accelerator Program: This is a financial assistance program for aspiring and current Colorado exporters. The grant program supports eligible small and medium-sized business through funds to offset international business development and marketing costs. Learn more.




Advanced Industries Tax Credit


Advanced Industries Tax Credit: A program which provides assistance to Colorado companies operating in seven advanced industries the opportunity to receive capital from investors. Learn more.




Aviation Development Zone Tax Credit


A program providing a state income tax credit of $1,200 per new full-time employee for businesses involved in the maintenance and repair, completion or modification of aircraft located within approved Aviation Development Zone airports. Learn more.




Colorado FIRST


A customized job training program focusing on companies relocating to or expanding in Colorado and provide funds only to net new hires. Learn more.




EZ - Research and Development Tax Credit


A tax credit for businesses up to three percent, based on the increase of a company’s research and development expenditures within an enterprise zone during the previous two income tax years. Learn more.




Global Consultant Network


A network of international consultants that connect qualifying Colorado companies to global opportunities and market education. Learn More.




Job Growth Investment Tax Credit


A program for businesses pursuing job creation projects that would not occur in Colorado without this support. Learn more.




Job Growth Incentive Tax Credit - Higher Education Partnership


A program for businesses partnering with State Higher Institutions (HEI) to support job growth, academic development and economic expansion. Learn more.




Procurement Technical Assistance Center (PTAC)


A program which provides Federal, State and local government contract procurement assistance in the form of education and counseling for Colorado companies. Learn more.




Rural Jump Start


A program for eligible new businesses and new hires that relocate to Jump-Start Zones. Learn more.




Strategic Fund Incentive


A program designed to encourage recruitment, retention and economic growth through Colorado by supporting businesses that have created and maintained permanent net new jobs for one year. Learn more.




Venture Capital Authority Funds


A program which makes seed and early-stage capital investments in eligible businesses via two Colorado Funds which are established with an independently operated fund manager. Learn more.





Creative Industries and Artists

Commercial Historic Preserviation Tax Credit


A program jointly administered with History Colorado for owners of designated commercial properties that do a certified rehabilitiation of their property. Learn more.




Colorado Creative Districts


This program offers vetted districts across the state access to grant funding, tailored technical assistance, networking and training programs, and access to advocacy tools to support the growth and infrastructure of the state’s creative economy. Learn more.




Space to Create


This program is the first state driven initiative in the nation to develop affordable housing and workspaces for artists and art organizations. Designed to position Colorado as the leader in artist-led community transformation in rural communities, this program will facilitate the development of nine projects over the course of eight years. Learn more.





Enterprise Zone

What is the Colorado Enterprise Zone Program?


The Colorado Enterprise Zone (EZ) Program is designed to promote a business-friendly environment in economically distressed areas by offering state income tax credits that incentivize businesses to locate and develop in, and non-profit organizations to assist with the needs of these communities. Private-sector business activity encouraged by these income tax incentives brings job opportunities and capital investment to economically distressed areas. The private investment results in tax revenue for school districts, cities, counties and the state, outweighing the costs of the tax credits granted. Las Animas County is considered an 'Enhanced Enterprise Zone' Learn more.




Investment Tax Credit


Businesses investing in Enterprise Zones through business personal property can earn a 3% tax credit. Special rules for renewable energy equipment apply.




Job Training


Companies that implement a qualified job-training program for their enterprise zone employees may earn an income tax credit of 12% of their eligible training costs.




New Employee Credit


Agricultural Processor: An additional tax credit of $500 per net new employee may be claimed by businesses adding value to agricultural commodities through manufacturing or processing. Enhanced Rural EZ: An additional tax credit of $2,000 per net new employee may be claimed for businesses in Enhanced Rural EZs – these are re-established every 2 years. EREZ designated counties are highlighted on the map below. Enhanced Rural Agricultural Processor: An additional tax credit of $500 per net new employee may be claimed if the business is an agricultural manufacturing or processing business in an Enhanced Rural EZ.




Employer Sponsored Health Insurance


Offers businesses $1,000 per net new employee insured under a qualified health plan for which the employer pays at least 50% of the cost. This credit is available for the first two years the business is located in an enterprise zone.




Research and Development Tax Credit


Businesses conducting research and development may earn a 3% tax credit on the increase in such expenditures as compared to that of the prior 2 years.




Vacant Commercial Building Rehabilitation


Encourages redevelopment of vacant commercial property with a 25% credit for the cost of rehabilitation of a building that is at least 20 years old and has been completely vacant for at least 2 years. The credit is limited to $50,000 per building. *When certifying for the EZ Vacant Commercial Building Rehabilitation tax credit, the applicant is required to provide evidence of the building’s age and vacancy condition prior the start of the remodel.




Commercial Vehicle Investment Tax Credit


Investment in commercial trucks, truck tractors, tractors, or semitrailers, and associated parts registered in CO and based and used in an EZ may earn the taxpayer a 1.5% credit. Application Form and Instructions.




Contribution Projects


Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize EZs. EZ Administrators may propose projects for EZ Project status to implement the economic development plan of that specific EZ. EZ Administrators work with their communities to bring forward proposals that support local economic improvements, result in job creation/retention and business expansion, and have the support of the community. Colorado taxpayers may earn a 25% state income tax credit by contributing to targeted efforts. Learn more.





Exporting & Global Investment Opportunities

Advanced Industries Export Grant


The Advanced Industries (AI) Export Grant is a Colorado financial assistance program for aspiring and current Colorado exporters administered by the Colorado Office of Economic Development and International Trade (OEDIT). The grant program supports small and medium-sized business through funds to offset international business development and marketing costs. The grant is funded by the Colorado Advanced Industries Acceleration Program.




State Trade Expansion Program


The State Trade Expansion Program (STEP) Grant is a financial assistance program for aspiring and current Colorado exporters entering into a new global market. Funded in part by a grant with the U.S. Small Business Administration (SBA), STEP provides grant awards to small and medium-sized businesses to offset global business and export development activities.




Global Consultant Network


Through the Global Consultant Network, we maintain a network of international consultants that connect Colorado companies to global opportunities. Colorado companies have access to international consultants in major markets that provide valuable in-country market research.




Foreign Delegations


OEDIT regularly engages with international business and government delegations visiting Colorado. Contact us for details on upcoming delegations, if: - You represent a foreign entity interested in bringing a delegation to Colorado - You represent a Colorado company or organization that is interested in engaging with potential foreign investors, trade partners, or government officials Learn more





Rural Business Funding

Aviation Development Zone Tax Credit


A program providing a state income tax credit of $1,200 per new full-time employee for businesses involved in the maintenance and repair, completion or modification of aircraft located within approved Aviation Development Zone airports. Learn more.




CBDG - Grant and Loan Fund


Every year, the State of Colorado receives an allocation of federal funds to use for both community and economic development efforts within the state. OEDIT receives approximately one-third of this allocation of funds, using this allocation specifically for economic development efforts via the state’s Business Loan Funds.




Colorado FIRST


A customized job training program that focuses on companies relocating to or expanding in Colorado and provides funds only to net new hires. Learn more.




Enterprise Zone Tax Credits


These tax incentives encourage businesses to locate and expand in designated economically distressed areas of the state. Learn more.




Commercial Historic Preservation Tax Credit


A program jointly administered with History Colorado for owners of designated commercial properties that do a certified rehabilitation of their property. Learn more.




Job Growth Investment Tax Credit


A performance-based program for businesses pursuing job creation projects that would not occur in Colorado without this support. Learn more.




Job Growth Incentive Tax Credit-Higher Education Partnership


A program for businesses partnering with State Higher Institutions (HEI) to support job growth, academic development and economic expansion. Learn more.




Procurement Technical Assistance Center (PTAC)


A program which provides Federal, State and local government contract procurement assistance in the form of education and counseling for Colorado companies. Learn more.




Rural Technical Assistance Program


A program which provides Federal, State and local government contract procurement assistance in the form of education and counseling for Colorado companies. Learn more.




Rural Jump Start


A program for eligible new businesses and new hires that relocate to Jump-Start Zones. Learn more.




Strategic Fund Initiative


A program which supports eligible rural companies, communities and non-profit initiatives in new business development such as incubators. Learn more.




Strategic Fund Incentive


A performance-based program designed to encourage recruitment, retention and economic growth through Colorado by supporting Colorado Economic Development Commission (EDC) approved businesses that have created and maintained permanent net new jobs for one year. Learn more.




Colorado Creative Districts


This program offers vetted districts across the state access to grant funding, tailored technical assistance, networking and training programs, and access to advocacy tools to support the growth and infrastructure of the state’s creative economy. Learn more.




Space to Create


This program is the first state driven initiative in the nation to develop affordable housing and workspaces for artists and art organizations. Designed to position Colorado as the leader in artist-led community transformation in rural communities, this program will facilitate the development of nine projects over the course of eight years. Learn more.




Advanced Industries Export Accelerator Program


This is a financial assistance program for aspiring and current Colorado exporters. The grant program supports eligible small and medium-sized business through funds to offset international business development and marketing costs. Learn more.




Global Consultant Network


A network of international consultants that connect qualifying Colorado companies to global opportunities and market education. Learn more.




State Trade Expansion Program


A financial assistance program for aspiring and current Colorado exporters entering into a new international market. This program supports small and medium-sized business through grant funds to offset international business development and marketing costs. Learn more.





NM State Incentives

Advanced Manufacturing

Angel Investment Credit


A taxpayer who files a New Mexico income tax return and who is a “qualified investor” may take a tax credit of up to $62,500 (25% of a qualified investment) for an investment made in each of up to five New Mexico companies that are engaging in qualified research, as defined by the Internal Revenue Code, or manufacturing. The taxpayer may claim the angel investment credit for one qualified investment per investment round. Any portion of the tax credit remaining unused at the end of the taxpayer’s taxable year may be carried forward for five consecutive years. See More




Consumables Gross Receipts Tax Deduction for Manufacturers


A seller may deduct receipts from sales to a manufacturer of tangible personal property that becomes an ingredient or component part of a manufactured product. For the purposes of this deduction, “consumable” is defined as tangible personal property that is incorporated into, destroyed, depleted, or transformed in the process of manufacturing a product, including electricity, fuels, water, manufacturing aids and supplies, chemicals, gases, repair parts, spares, and other tangibles used to manufacture a product. Read more about the consumables deduction. See more.




High Wage Jobs Tax Credit


Please Note: Changes were made to the High Wage Jobs Tax Credit in the recent 2019 Legislative Session. These changes are reflected below, but do not become effective until July 1, 2019. Questions should be directed to the Taxation & Revenue Department.

A taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-wage economic-base job. The credit amount equals 8 1/2% of the wages and benefits paid for each new economic-base job created, up to $12,750 per job.
Qualified jobs: - Pays at least $40,000/year in a community with a population of less than 60,000 - Pays at least $60,000/year in a community with a population of 60,000 or more - Occupied for at least 44 weeks by the employee Qualified employers: - Are growing with employment greater than the previous year; and - Are eligible for the Job Training Incentive Program Qualified employers can take the credit for 4 years. The credit may only be claimed for up to 1 year after the end of the 3 qualifying periods. 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 $12,750 per year, per job. Qualified employees: - Must be a resident of New Mexico. - Cannot be a relative of the employer or own more than 50% of the company and cannot own, directly or indirectly, 50% in value of outstanding stock. See more.




Investment Tax Credit for Manufacturers


Administered by NM Taxation & Revenue Department Manufacturers may take a credit against gross receipts, compensating or withholding taxes equal to 5.125% of the value of qualified equipment when the following employment conditions are met: - For every $500,000 of equipment, 1 employee must be added up to $30 million; and - For amounts exceeding $30 million, 1 employee must be added for each $1 million of equipment The credit may (also) be claimed for equipment acquired under an IRB. This is a double benefit because no gross receipts or compensating tax was paid on the purchase or importation of the equipment. The manufacturer simply reduces its tax payment to the state (by as much as 85% per reporting period) until the amount of investment credit is exhausted. There also are provisions for issuing a refund when the credit balance falls under $500,000. The credit does not apply against local gross receipts taxes.
See more.




Rural Jobs Tax Credit


Administered by NM Taxation & Revenue Department This credit can be applied to taxes due on (state) gross receipts, corporate income, or personal income tax. Rural New Mexico is defined as any part of the state other than Los Alamos County; certain municipalities: Albuquerque, Rio Rancho, Farmington, Las Cruces, Roswell, and Santa Fe; and a 10-mile zone around those select municipalities. Company eligibility: - Companies that manufacture or produce a product in New Mexico - Non-retail service companies that export a substantial percentage of services out of state (50% or more revenues and/or customer base) - Certain green industries The rural area is divided into 2 tiers: - Tier 2 = Non-metro area municipalities that exceed 15,000 in population: Alamogordo, Carlsbad, Clovis, Gallup, and Hobbs - Tier 1 = Everywhere else in a rural area The maximum tax credit amount with respect to each qualifying job is equal to: - Tier 1: 25% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 4 years) - Tier 2: 12.5% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 2 years) A qualifying job is a job filled by an eligible employee for 48 weeks in a 12-month qualifying period. The credit may be carried forward for up to 3 years. See more.




Single Sales Factor


For the purposes of apportioning income, “manufacturing” excludes construction, farming, power generation, and processing natural resources including hydrocarbons. In addition, in taxable years that begin on or after January 1, 2015, corporate headquarters operations may elect to have business income apportioned to New Mexico subject to a single sales factor apportionment methodology. See more.




Trade Support Company in a Border Zone


The receipts of a customs brokerage firm or freight forwarder may be deducted from gross receipts if the company first locates in New Mexico within twenty (20) miles of an international port of entry in New Mexico on New Mexico's border with Mexico at which customs services are provided by United States Customs and Border Protection on or after July 1, 2003, but before July 1, 2013, or on or after January 1, 2016 but before January 1, 2021. The deduction is valid for those receipts derived from the company's business activities and operations at its border zone location within five years of the date on which the company locates in New Mexico. To qualify, the company must emply at least two employees in New Mexico. See more.





Aerospace

Aircraft Deduction


Administered by NM Taxation & Revenue Department - Receipts from selling aircraft parts or maintenance services for aircraft or aircraft parts - Receipts of an aircraft manufacturer from selling aircraft flight support, pilot training, or maintenance training services - Receipts from the sale of or from maintaining, refurbishing, remodeling, or otherwise modifying a commercial or military carrier over 10,000 pounds gross landing weight - 50% of gross receipts from selling other aircraft - 55% of the receipts from selling jet fuel for use in turboprop or jet engines until June 30, 2017; 40% after June 30, 2017 See more.




Directed Energy and Satellites


Receipts from the sale of qualified research and development services and qualified directed energy and satellite-related inputs to the Department of Defense may be deducted from gross receipts. See more.




High Wage Jobs Tax Credit


Please Note: Changes were made to the High Wage Jobs Tax Credit in the recent 2019 Legislative Session. These changes are reflected below, but do not become effective until July 1, 2019. Questions should be directed to the Taxation & Revenue Department.

A taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-wage economic-base job. The credit amount equals 8 1/2% of the wages and benefits paid for each new economic-base job created, up to $12,750 per job.
Qualified jobs: - Pays at least $40,000/year in a community with a population of less than 60,000 - Pays at least $60,000/year in a community with a population of 60,000 or more - Occupied for at least 44 weeks by the employee Qualified employers: - Are growing with employment greater than the previous year; and - Are eligible for the Job Training Incentive Program Qualified employers can take the credit for 4 years. The credit may only be claimed for up to 1 year after the end of the 3 qualifying periods. 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 $12,750 per year, per job. Qualified employees: - Must be a resident of New Mexico. - Cannot be a relative of the employer or own more than 50% of the company and cannot own, directly or indirectly, 50% in value of outstanding stock. See more.




Military Aquisition Program Tax Deduction


Administered by NM Taxation & Revenue Department Receipts from transformational acquisition programs performing research and development, testing, and evaluation at New Mexico major range and test facility bases pursuant to contracts entered into with the U. S. Department of Defense may be deducted from gross receipts. See more.




Research and Development Tax Deduction


Aerospace services are the research and development services sold or for resale to an organization for resale by the organization to the U.S. Air Force. When R&D services are sold to Phillips Laboratory for resale to the Air Force, the seller's receipts are deductible. If the R&D services are sold to an intermediary for resale to Phillips Laboratory for resale to the Air Force, those receipts are also deductible. See more.




Rural Jobs Tax Credit


Administered by NM Taxation & Revenue Department This credit can be applied to taxes due on (state) gross receipts, corporate income, or personal income tax. Rural New Mexico is defined as any part of the state other than Los Alamos County; certain municipalities: Albuquerque, Rio Rancho, Farmington, Las Cruces, Roswell, and Santa Fe; and a 10-mile zone around those select municipalities. Company eligibility: - Companies that manufacture or produce a product in New Mexico - Non-retail service companies that export a substantial percentage of services out of state (50% or more revenues and/or customer base) - Certain green industries The rural area is divided into 2 tiers: - Tier 2 = Non-metro area municipalities that exceed 15,000 in population: Alamogordo, Carlsbad, Clovis, Gallup, and Hobbs - Tier 1 = Everywhere else in a rural area The maximum tax credit amount with respect to each qualifying job is equal to: - Tier 1: 25% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 4 years) - Tier 2: 12.5% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 2 years) A qualifying job is a job filled by an eligible employee for 48 weeks in a 12-month qualifying period. The credit may be carried forward for up to 3 years. See more.




Spaceport-Related Activities Gross Receipts Tax Deductions


There are 4 separate deductions connected with the operation of a spaceport in New Mexico. 1. Receipts from launching, operating, or recovering space vehicles or payloads 2. Receipts from preparing a payload in New Mexico 3. Receipts from operating a spaceport in New Mexico 4. Receipts from the provision of research, development, testing, and evaluation services for the United States Air Force Operationally Responsive Space Program “Space” is defined as any location beyond altitudes of 60,000 feet above mean sea level. “Payload” means a system, subsystem or other mechanical structure designed and constructed to perform a function in space. “Space operations” is defined as the process of commanding and controlling payloads in space. “Spaceport” is defined as the installation and related facilities used for the launching, landing, operating, recovering, servicing, and monitoring of vehicles capable of entering or returning from space. See more.





Sustainable & Value Added Agriculture

Beer & Wine Producers' Preferential Tax Rate


Administered by NM Taxation & Revenue Department Microbreweries producing less than 5,000 barrels of beer annually and small wineries producing less than 560,000 liters of wine per year qualify for a preferential tax rate. The Liquor Excise Tax Act imposes taxes on beer, wine, and spirituous liquors. The basic tax rate for wine is 45 cents per liter. Wine produced by a small vintner carries a tax of 10 cents per liter on the first 80,000 liters and 20 cents on production over that level up to 560,000 liters. The basic tax rate for beer produced by a brewery is 41 cents; beer produced by a microbrewery (producing less than 5,000 barrels annually) is taxed at 8 cents per gallon. See more.




Consumables Gross Receipts Tax Deduction for Manufacturers


A seller may deduct receipts from sales to a manufacturer of tangible personal property that becomes an ingredient or component part of a manufactured product. For the purposes of this deduction, “consumable” is defined as tangible personal property that is incorporated into, destroyed, depleted, or transformed in the process of manufacturing a product, including electricity, fuels, water, manufacturing aids and supplies, chemicals, gases, repair parts, spares, and other tangibles used to manufacture a product. Read more about the consumables deduction. See more.




Investment Tax Credit for Manufacturers


Administered by NM Taxation & Revenue Department Manufacturers may take a credit against gross receipts, compensating or withholding taxes equal to 5.125% of the value of qualified equipment when the following employment conditions are met: - For every $500,000 of equipment, 1 employee must be added up to $30 million; and - For amounts exceeding $30 million, 1 employee must be added for each $1 million of equipment The credit may (also) be claimed for equipment acquired under an IRB. This is a double benefit because no gross receipts or compensating tax was paid on the purchase or importation of the equipment. The manufacturer simply reduces its tax payment to the state (by as much as 85% per reporting period) until the amount of investment credit is exhausted. There also are provisions for issuing a refund when the credit balance falls under $500,000. The credit does not apply against local gross receipts taxes. See more.




Rural Jobs Tax Credit


Administered by NM Taxation & Revenue Department This credit can be applied to taxes due on (state) gross receipts, corporate income, or personal income tax. Rural New Mexico is defined as any part of the state other than Los Alamos County; certain municipalities: Albuquerque, Rio Rancho, Farmington, Las Cruces, Roswell, and Santa Fe; and a 10-mile zone around those select municipalities. Company eligibility: - Companies that manufacture or produce a product in New Mexico - Non-retail service companies that export a substantial percentage of services out of state (50% or more revenues and/or customer base) - Certain green industries The rural area is divided into 2 tiers: - Tier 2 = Non-metro area municipalities that exceed 15,000 in population: Alamogordo, Carlsbad, Clovis, Gallup, and Hobbs - Tier 1 = Everywhere else in a rural area The maximum tax credit amount with respect to each qualifying job is equal to: - Tier 1: 25% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 4 years) - Tier 2: 12.5% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 2 years) A qualifying job is a job filled by an eligible employee for 48 weeks in a 12-month qualifying period. The credit may be carried forward for up to 3 years. See more.




Singles Sales Factor


For the purposes of apportioning income, “manufacturing” excludes construction, farming, power generation, and processing natural resources including hydrocarbons. In addition, in taxable years that begin on or after January 1, 2015, corporate headquarters operations may elect to have business income apportioned to New Mexico subject to a single sales factor apportionment methodology. See more.





Back Office & Technical Support

Financial Management Tax Credit


Administered by NM Taxation & Revenue Department Receipts from fees received for performing management or investment advisory services for a related mutual fund, hedge fund, or real estate investment trust may be deducted from gross receipts See more.




High Wage Jobs Tax Credit


Please Note: Changes were made to the High Wage Jobs Tax Credit in the recent 2019 Legislative Session. These changes are reflected below, but do not become effective until July 1, 2019. Questions should be directed to the Taxation & Revenue Department.

A taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-wage economic-base job. The credit amount equals 8 1/2% of the wages and benefits paid for each new economic-base job created, up to $12,750 per job.
Qualified jobs: - Pays at least $40,000/year in a community with a population of less than 60,000 - Pays at least $60,000/year in a community with a population of 60,000 or more - Occupied for at least 44 weeks by the employee Qualified employers: - Are growing with employment greater than the previous year; and - Are eligible for the Job Training Incentive Program Qualified employers can take the credit for 4 years. The credit may only be claimed for up to 1 year after the end of the 3 qualifying periods. 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 $12,750 per year, per job. Qualified employees: - Must be a resident of New Mexico. - Cannot be a relative of the employer or own more than 50% of the company and cannot own, directly or indirectly, 50% in value of outstanding stock. See more.




Rural Jobs Tax Credit


Administered by NM Taxation & Revenue Department This credit can be applied to taxes due on (state) gross receipts, corporate income, or personal income tax. Rural New Mexico is defined as any part of the state other than Los Alamos County; certain municipalities: Albuquerque, Rio Rancho, Farmington, Las Cruces, Roswell, and Santa Fe; and a 10-mile zone around those select municipalities. Company eligibility: - Companies that manufacture or produce a product in New Mexico - Non-retail service companies that export a substantial percentage of services out of state (50% or more revenues and/or customer base) - Certain green industries The rural area is divided into 2 tiers: - Tier 2 = Non-metro area municipalities that exceed 15,000 in population: Alamogordo, Carlsbad, Clovis, Gallup, and Hobbs - Tier 1 = Everywhere else in a rural area The maximum tax credit amount with respect to each qualifying job is equal to: - Tier 1: 25% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 4 years) - Tier 2: 12.5% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 2 years) A qualifying job is a job filled by an eligible employee for 48 weeks in a 12-month qualifying period. The credit may be carried forward for up to 3 years. See more.





Emerging & Digital Media

Angel Investment Credit


A taxpayer who files a New Mexico income tax return and who is a “qualified investor” may take a tax credit of up to $62,500 (25% of a qualified investment) for an investment made in each of up to five New Mexico companies that are engaging in qualified research, as defined by the Internal Revenue Code, or manufacturing. The taxpayer may claim the angel investment credit for one qualified investment per investment round. Any portion of the tax credit remaining unused at the end of the taxpayer’s taxable year may be carried forward for five consecutive years. See More




Film Post Production Services 25% Refundable Tax Credit


The Film Production Tax Credit applies to post production expenditures which are directly attributable to the production of a commercial film or audiovisual product. The services must be performed in New Mexico. Eligible expenditures include editing, Foley recording, automatic dialogue replacement, sound editing, special effects, including computer-generated imagery or other effects, scoring and music editing, beginning and end credits, negative cutting, soundtrack production, dubbing, subtitling or addition or sound or visual effects. For additional information, visit the New Mexico Film Office. See more.




Rural Software Development Gross Reciepts Tax Deduction


Receipts from the sale of software development services may be deducted from gross receipts tax when the service is performed in a rural area. Software development services include custom software design and development and web site design and development, but does not include software implementation or support services. A rural area is defined as any not within the municipal boundaries of the cities of Albuquerque, Las Cruces, Rio Rancho and Santa Fe are not eligible for this deduction. See more.




Technology Jobs and Research and Development Tax Credit


Administered by NM Taxation & Revenue Department The purpose of the credit is to provide a favorable tax climate for technology-based businesses engaging in research, development and experimentation and to promote increased employment and higher wages in those fields in New Mexico. A taxpayer conducting qualified research at a qualified facility and making qualified expenditures of no more than $5 million in New Mexico is eligible to claim the basic technology jobs and research and development tax credit of 5% against the taxpayer’s compensating tax, withholding tax or gross receipts tax, excluding local option gross receipts tax. The tax credit will double to 10% for expenditures in facilities located in rural New Mexico. The approved basic credit may be carried forward for a period of up to three years. That same taxpayer may apply for an additional tax credit of 5% against the taxpayer’s income tax or corporate income tax liability. The credit will double to 10% for taxpayers located in rural New Mexico. To qualify for the additional credit the taxpayer must increase the annual payroll expense $75,000 for every $1 million in qualified expenditures claimed. The taxpayer may not claim an amount that exceeds the taxpayer’s personal or corporate income for that reporting period. The additional credit may be carried forward for a period of up to three years. For a qualified research and development small business, which is defined as having no more than 50 employees, they too, can claim the basic credit and the same rules apply to them. The qualified research and development small business can also claim the additional credit with the same rules. The qualified research and development small business can be refunded if the approved amount exceeds the taxpayer’s income tax liability or corporate income tax liability: - Less than $3 million, the excess will be refunded. - $3 million to less than $4 million, two-thirds of the excess will be refunded. - $4 million to $5 million, one-third of the excess will be refunded. See more.




Web Hosting Gross Receipts Tax Deduction


Administered by NM Taxation & Revenue Department Receipts from hosting World Wide Web sites may be deducted from gross receipts. Hosting means storing information on computers attached to the Internet. See more.





Energy & Natural Resources

Advanced Energy Deduction & Advanced Energy Tax Credit


Administered by NM Taxation & Revenue Department Receipts from selling or leasing tangible personal property or services that are eligible generation plant costs to a person that holds an interest in a qualified generating facility are deductible from gross receipts and compensating tax. In addition, a taxpayer who holds an interest in a qualified generating facility in New Mexico that files a corporate income tax return may claim a credit for 6% of the eligible generation plant costs of a qualified facility. See more.




Alternative Energy Product Manufacturer’s Tax Credit


Administered by NM Taxation & Revenue Department Manufacturers of certain alternative energy products may receive a tax credit not to exceed 5% of qualified expenditures for purchase of manufacturing equipment used in the manufacturing operation. This credit is designed to stimulate the development of new alternative energy manufacturing facilities. See more.




Biodiesel Blending Facility Tax Credit


Administered by NM Taxation & Revenue Department An operator of a refinery in New Mexico, any person who blends special fuel in New Mexico, or the owner of special fuel stored at a pipeline terminal in New Mexico, who installs biodiesel blending equipment for the purpose of establishing or expanding in a facility to produce blended biodiesel fuel is eligible to claim a credit against gross receipts tax or compensating tax. A certificate of eligibility must be obtained from the Energy, Minerals, and Natural Resources Department to apply for this credit. The credit is equal to 30% of the purchase cost of the equipment plus 30% of the cost of installing that equipment. The credit cannot exceed $50,000 with respect to equipment installed at any one facility. The credit may be applied against the taxpayer’s gross receipts tax liability or compensating tax liability. The credit may be carried forward for 4 years from the date of the certificate of eligibility. See more.




Biomass-Related Equipment & Materials Deduction


Administered by NM Taxation & Revenue Department The value of equipment such as a boiler, turbine-generator, storage facility, feedstock processor, interconnection transformer, or biomass material used for bio-power, bio-fuels, or bio-based products may be deducted in computing the compensating tax due. See more.




Renewable Energy Production Tax Credit


Administered by NM Taxation & Revenue Department A corporate or personal taxpayer who owns a qualified energy generator is eligible for a tax credit in an amount equal to 1 cent per kilowatt hour of electricity produced by the qualified energy generator using a qualified energy resource in the tax year. A variable rate of credit is added for electricity produced using solar energy. The rate starts at 1.5 cents in the 1st year of operation and increases in increments of .5 cent each of the next 5 years, to a maximum of 4 cents, and then will decline by .5 cent per year in the next 4 years to 2 cents in the 10th year of operation. The 1 cent per kilowatt hour rate applies for all other qualified energy generation facilities. The facility must generate a minimum of 1 megawatt. The total amount of electricity that can qualify for the corporate and individual income tax credits is 2 million megawatts for wind and biomass with an additional 500,000 megawatt hours allowed for solar-generated power. See more.





Logistics, Distribution, & Transportation

Locomotive Fuel Gross Reciepts & Compensating Tax Exemption


Administered by NM Taxation & Revenue Department Receipts from the sale of fuel to a common carrier to be loaded or used in a locomotive engine may be deducted from the gross receipts, and the value of fuel sold to a common carrier to be loaded or used in a locomotive engine may be deducted in computing the compensating tax. “Locomotive engine” is defined as a wheeled vehicle consisting of a self-propelled engine that is used to draw trains along railway tracks. To be eligible, the fuel sold must be used or loaded by a common carrier that: 1. After July 1, 2011, made a capital investment of $100 million or more in new construction or renovations at the railroad locomotive refueling facility in which the fuel is loaded or used; or 2. On or after July 1, 2012, made a capital investment of $50 million or more in new railroad infrastructure improvements, including railroad facilities, track, signals, and supporting railroad network, located in New Mexico; provided that the new railroad infrastructure improvements are not required by a regulatory agency to correct problems, such as regular or preventive maintenance, specifically identified by that agency as requiring necessary corrective action. See more.




Trade Support Company in a Border Zone


The receipts of a customs brokerage firm or freight forwarder may be deducted from gross receipts if the company first locates in New Mexico within twenty (20) miles of an international port of entry in New Mexico on New Mexico's border with Mexico at which customs services are provided by United States Customs and Border Protection on or after July 1, 2003, but before July 1, 2013, or on or after January 1, 2016 but before January 1, 2021. The deduction is valid for those receipts derived from the company's business activities and operations at its border zone location within five years of the date on which the company locates in New Mexico. To qualify, the company must emply at least two employees in New Mexico. See more.