Doing Business in Rio Rancho
Economic Development Incentives and Finance
Investment Tax Credit Act
Provides a credit equal to five percent of the value of certain equipment purchased or brought into New Mexico in connection with a manufacturing operation. To qualify for the credit businesses must meet applicable employment requirements. For applications submitted on or after June 20, 2003, but before July 1, 2011:
- Business must have employed one additional full-time employee for every $500,000 (or portion of that amount) in value of qualified equipment for which the credit is claimed on the application, up to a value of $30 million, and
- Businesses must have employed one additional full-time employee for every $1,000,000 (or portion of that amount) in value of qualified equipment over $30 million.
Businesses receiving approved investment credits, may apply the amount against gross receipts, compensating or withholding tax owed to the state. The credit is limited to 85 percent of the CRS due for any reporting period and may not be taken against any local option gross receipts taxes. Any amount of credit remaining may be claimed in subsequent reporting periods.
For more information, see Sections 7-9A-11, NMSA 1978, the Application for New Mexico Investment Credit Instructions, Application for New Mexico Investment Credit, and Application for New Mexico Investment Credit – Schedule A and Schedule A Instructions available for download at www.state.nm.us/tax/forms/year03/corporate.htm.