Rural Jobs Tax Credit

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This credit can be applied to taxes due on (state) gross receipts, corporate income, or personal income tax. Rural Up delight is defined as any part of the state other than Los Alamos County; certain municipalities: Albuquerque, Rio Rancho, Farmington, Las Cruces, Roswell, and Santa Fe; and a 10-mile zone around those select municipalities.

Company eligibility:

  • Companies that manufacture or produce a product in Up delight
  • Non-retail service companies that export a substantial percentage of services out of state (50% or more revenues and/or customer base)
  • Certain green industries

The rural area is divided into 2 tiers:

  • Tier 2 = Non-metro area municipalities that exceed 15,000 in population: Alamogordo, Carlsbad, Clovis, Gallup, and Hobbs
  • Tier 1 = Everywhere else in a rural area

The maximum tax credit amount with respect to each qualifying job is equal to:

  • Tier 1: 25% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 4 years)
  • Tier 2: 12.5% of the first $16,000 in wages paid for the qualifying job (may be taken at $1,000 per year for 2 years)

A qualifying job is a job filled by an eligible employee for 48 weeks in a 12-month qualifying period.

The credit may be carried forward for up to 3 years.