State program
New Mexico Technology Jobs and Research and Development Tax Credit
A dual basic and additional credit tied to payroll growth, with a rural bonus and refundability for small businesses.
Program overview
New Mexico structures its incentive as a basic credit on qualified research expenditures plus an additional credit that is unlocked only when the business increases its New Mexico payroll. Rates double for expenditures in rural areas outside the state's metropolitan corridors. Small businesses may receive a refund of the basic credit in cash, and the credit may be applied against gross receipts tax, compensating tax and withholding tax as well as income tax, which is unusually flexible.
Eligibility
Taxpayers conducting qualified research at a facility in New Mexico, with the additional credit requiring an increase in annual New Mexico payroll relative to a base year.
Benefits
Applies against gross receipts, compensating, withholding and income tax; refundable in cash for qualifying small businesses.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.