High-Wage Jobs Tax Credit
New Mexico wants to partner with employers in creating new, higher-paying jobs. Eligible employers can receive a refundable tax credit that can be claimed against gross receipts, compensating and withholding taxes for up to four years for each qualifying new high-wage job.
- Eligible Employers
- Fifty percent of sales in the year prior to claiming credit were to customers outside of New Mexico. OR...
- Eligible for Job Training Assistance Program assistance on or before date new high wage job created. AND...
- Must be an increase in number of new high-wage jobs at job location over prior year.
- Qualifying Employee
- resident of New Mexico
- employed in new job created between July 1, 2004 and July 1, 2009
- holds job for at least 48 weeks in year before applying for credit
- in a municipality with population 40,000 or over (Albuquerque or Rio Rancho), is paid wages (exclusive of some benefits) of at least $40,000 for the twelve months following job start
- in a municipality with population under 40,000 or unincorporated areas, is paid wages (exclusive of some benefits) of at least $28,000 for twelve months following job start.
- Amount of Credit
- Ten percent of wages and benefits paid to qualifying employee up to $12,000 per qualifying employee per year
- Claimed against sum of state (but not local option) gross receipts tax, compensating tax and withholding tax, minus any other credits claimed against these taxes.
- Credit Refundable If Not Exhausted
For more information or analysis of tax incentives for your company, call 800-226-2935 or email us .
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