State Program
New Mexico Technology Jobs and Research and Development Tax Credit
A basic research credit and an additional credit tied to New Mexico payroll growth, with higher rates for qualifying research conducted in rural areas and refundability available to eligible small businesses.
Program Overview
New Mexico provides a basic credit based on qualified research expenditures and an additional credit that is available when a business meets applicable New Mexico payroll-growth requirements. Higher credit rates may apply to qualifying research expenditures associated with facilities in eligible rural areas outside designated metropolitan areas. Eligible small businesses may receive a refund of the basic credit, subject to applicable requirements. The credit may be applied against gross receipts tax, compensating tax, withholding tax, and income tax, as permitted under New Mexico law.
Eligibility
- Taxpayers conducting qualified research at an eligible facility in New Mexico may qualify.
- Qualifying research expenditures must meet applicable New Mexico requirements.
- The additional credit requires the business to meet the applicable New Mexico payroll-growth requirement relative to the designated base year.
- Additional requirements may apply to businesses seeking the rural-area rate or refundability for small businesses.
Benefits
- Basic credit available for qualifying research expenditures.
- Additional credit may be available when applicable New Mexico payroll-growth requirements are met.
- Higher rates may apply to qualifying research conducted in eligible rural areas.
- The credit may be applied against gross receipts tax, compensating tax, withholding tax, and income tax, subject to applicable requirements.
- Eligible small businesses may receive a refund of the basic credit, subject to applicable limitations and requirements.
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