OVERVIEW

Manufacturer’s Investment Tax Credit
Manufacturers may take a tax credit of 5.125 percent of the value of qualified equipment and other property used in their operation. The credit can be applied against compensating, gross receipts or withholding tax up to 85% of the total. Any remaining available credit may be claimed in subsequent reporting periods.

Technology Jobs Tax Credit
A taxpayer who conducts qualified research and development at a facility in New Mexico is allowed a basic tax credit equal to five percent (5%) of qualified expenditures, and an additional five percent (5%) credit toward income tax liability by raising its in-state payroll $75,000 for every $1 million in qualified expenditures claimed. The tax credit doubles for expenditures in facilities located in rural New Mexico (as defined for this tax credit as anywhere outside Rio Rancho or more than 3 miles outside Bernalillo, Doña Ana, San Juan or Santa Fe counties).

Consumables Gross Receipts Tax Deduction for Manufacturers
A seller may deduct receipts from sales to a manufacturer of tangible personal property that becomes an ingredient or component part of a manufactured product. For the purposes of this deduction, consumable is defined as tangible personal property that is incorporated into, destroyed, or transformed during the manufacturing process. This includes electricity, fuels, water, manufacturing aids and supplies, chemicals, gases, repair parts, spares, and other tangible items used to manufacture a product.