Doing Business in Rio Rancho
Economic Development Incentives and Finance
High Wage Jobs Tax Credit
Eligible businesses may earn the High Wage Jobs tax credit for each qualifying high wage job created between July 1, 2004, and June 30, 2009. The amount of the credit is ten (10) percent of wages and benefits paid or distributed to an eligible employee in a high wage job for a maximum credit of $12,000 per qualified period. To qualify for the credit, in Rio Rancho, the eligible employee must receive wages for the qualifying period of at least $40,000.
For every person hired, the employer receives from the state 50 percent of the credit earned for federal purposes. Credit can be earned on the same individual employed by the same employer for up to two years. State maximum credit amounts are $1,750 for the 1st year, $2,500 for the 2nd year per qualifying employee, and any part of the remaining credit may carry forward at the end of the taxable year for three (3) consecutive taxable years. An employer must first qualify for the federal credit.
For more information on the High Wage Jobs Tax Credit, see www.state.nm.us/tax/forms/year03/corporate.htm.