Technology Jobs and Research and Development Tax Credit.
Basic credit: A taxpayer who conducts qualified research1 and development at a facility in New Mexico – except at a facility operated for the U.S. government – may claim a basic credit equal to 4% of qualified expenditures. The 4% credit doubles when the qualified facility is in a rural area (that part of New Mexico outside Bernalillo, Doña Ana and Santa Fe counties and the three-mile buffer zone around Bernalillo, Doña Ana, San Juan and Santa Fe counties and the municipality of Rio Rancho). Qualified expenses include rent, equipment, software, payroll, technical manuals and materials, and operation and maintenance of facilities. Expenditures which are reimbursed, or which are incurred on property owned by the taxpayer before July 4, 2000, on property owned by a local government in connection with an industrial bond project, – or for which the taxpayer has received another credit – are ineligible. For additional qualifying information, please look at TRD’s application and claim form listed above.
Additional credit: A taxpayer may qualify for an additional 4% credit toward income tax liability by raising its in-state payroll $75,000 for every $1 million in qualified expenditures claimed. The minimum is $75,000. This credit also doubles if the qualified facility is in a rural area. For additional qualifying information, please look at TRD’s application and claim form listed above.