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State of New Mexico Incentives

JTIP

Highly flexible state program to provide classroom and on-the-job training for qualified employees of qualified employers. Customized training may be provided by post-secondary educational institutions, company trainers, or outside trainers.

The state will reimburse for up to 50% of trainees’ wages up to 1,040 hours for companies located in urban areas and up to 65% of trainees' wages up to 1,040 hours for companies located in rural areas.

  • Companies may receive an additional wage reimbursement of 5% for an eligible high-wage job.
  • Companies may receive an additional 5% reimbursement for one of the three following conditions, provided the entry wage is at least the minimum rate for the Job Zone as outlined in the JTIP wage chart for Zones 1, 2, 3 and 4.
  • Trainee has taken the WorkKeys® assessment as a part of the hiring process.
  • Trainee has graduated within the past twelve months from a post-secondary training or academic program at a New Mexico institution of higher education.
  • Trainee is a U.S. Veteran.

Classroom training costs provided by New Mexico post-secondary educational institutions, ($35 per hour for instructors’ time capped at $1,000 per employee).

High Wage Jobs Tax Credit

Provides businesses with a tax credit equal to 10% of salaries for each new job paying a net taxable wage of at least $60,000 per year in the Albuquerque metropolitan area. Qualified employers can take the credit for four years. The refundable credit can be applied against the modified combined tax liability of the taxpayer, including the state portion of the gross receipts tax, compensating tax and withholding tax. Excludes the local portion of the gross receipts tax. This credit is refundable to businesses with fewer than 50 employees. It is scheduled to sunset on June 30, 2020.

New Market Tax Credits (NMTC)

The New Mexico Finance Authority operates the NMTC program on behalf of the State of New Mexico. The NMTC program was established primarily to provide greater access to financing for new, expanding or relocating businesses in underserved areas. Projects eligible for NMTC funding must be located in qualified Census tracts. These tracts are generally located in “highly distressed” areas.

Characteristics of these census tracts:

  • Poverty above 30%.
  • Median family income below 60% of statewide median.
  • Unemployment above 1.5 X national unemployment rate.

To quickly check eligibility, enter the address in the Reznick Group’s NMTC Qualifying Census Tracts Mapping Tool.

Contact Juan Torres, Director of Finance Development Programs, [email protected], or 505.827.0238.

NM Credit Enhancement Program (CEP)

To support business growth in New Mexico and to create and retain jobs, the state Economic Development Department encourages banks and other financial institutions to make loans to New Mexico small businesses in “under-served” markets. NMEDD can pledge cash to cover a collateral shortfall of a loan to enable financing that otherwise might not be available to a small business. The program is administered through the NMEDD’s Finance Development Team (FDT).

Eligible borrowers must meet these criteria:

  • Business purpose is one of the industries listed in the North American Industry Classification Systems (NAICS) codes list.
  • Business is considered a “small business” under the U.S. Small Business Administration - 750 employees or fewer full-time equivalents.

Loan proceeds can be used toward the following:

  • Any tangible or intangible asset purchase, including construction, renovation or improvements of an eligible place of business
  • Start-up costs
  • Working capital
  • Franchise fees
  • Equipment
  • Inventory
  • Bridge loans needed before the borrower obtaining permanent financing or support

How it Works:

  • Cash support up to 50% of the principal based on qualifying criteria for under collateralized loans.
  • Preference is given to businesses for the following: located in under-served, rural, economically distressed or metropolitan redevelopment areas; minority-owned; veteran-owned; generating income from outside the state; and creating jobs.
  • Before issuance of a loan, the participating lender submits a Credit Enhancement Program request to NMEDD FDT.
  • Once approved by NMEDD FDT, CEP approval is sent to the lender. This commitment can be called upon for up to 90 days after issuance.
  • Once the loan is finalized, NMEDD FDT funds the CEP contribution. A separate account is opened for each loan that is enrolled in CEP.
  • Within 15 business days of loan closing, the lender submits the final loan information and notifies NMEDD FDT that the loan was funded.

To learn more, contact 505.827.0264 or email [email protected].