Incentives

Local Economic Development Act (LEDA) Program
Under the Local Economic Development Act (LEDA) (5-10-1 to 5-10-13 NMSA 1978) the New Mexico Economic Development Department (NMEDD) is granted authority to administer grants to Local Governments (Municipality and/or County); to assist expanding or relocating businesses that are Qualified Entities that will stimulate economic development and produce public benefits pursuant to LEDA. All grants are funded on a strictly reimbursement basis.

NMEDD targets economic development projects that comply with all legal facets of LEDA. Additional consideration is given to project that demonstrate:

Significant Community Impact and Support;
Rural and Underserved Areas of New Mexico;
Increased Wages and Job Creation;
Significant New Capital Investment; and
Environmentally Sustainable Outcomes.

Learn more at https://edd.newmexico.gov/community-development/local-economic-development-act/

Job Training Incentive Program (JTIP)
New Mexico has one of the most generous training incentive programs in the country. The Job Training Incentive Program (JTIP) funds classroom and on-the-job training for newly created jobs in expanding or relocating businesses for up to 6 months. The program reimburses 50-75% of employee wages. Custom training at a New Mexico public educational institution may also be reimbursed.

Learn more at https://edd.newmexico.gov/business-development/edd-programs-for-business/job-training-incentive-program/

High Wage Job Tax Credit
Administered by the NM Taxation & Revenue Department, a taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-wage economic-base job. The credit amount equals 8.5% of the wages and benefits paid for each new economic-base job created, up to $12,750 per job. Qualified jobs are those which pay at least $40,000/year in a community with a population of less than 60,000, those that pay at least $60,000/year in a community with a population of 60,000 or more, and are occupied for at least 44 weeks by the employee. Qualified employers can take the credit for 4 years. The credit may only be claimed for up to 1 year after the end of the 3 qualifying periods. The credit can be applied to the state portion of the gross receipts tax, compensating tax, and withholding tax. Any excess credit will be refunded to the taxpayer. The credit shall not exceed $12,750 per year, per job. Qualifying employees must be residents of New Mexico and cannot be a relative of the employer or own more than 50% of the company and cannot own, directly or indirectly, 50% in value of outstanding stock.

Learn more at https://edd.newmexico.gov/choose-new-mexico/competitive-business-climate/incentives/high-wage-jobs-tax-credit

New Market Tax Credit (NMTC) Program
The New Markets Tax Credit program is a federal program designed to provide businesses in rural or low-income communities with greater access to capital in order to increase job creation and development activities.

Under the New Markets Tax Credit program, Finance New Mexico leverages private capital with funds derived from the sale of tax credits to investors. The incentive to investors is a 39% federal income tax credit earned over seven years for every dollar invested in a qualified low-income community enterprise. The benefit to New Mexico businesses is very-low-cost capital, with flexible lending criteria and the potential to convert portions of NMTC loans to equity.

Learn more at : https://www.nmfinance.com/business-financing/new-markets-tax-credits/

New Mexico Rural Efficient Business Program
The Rural Efficient Business Program (REBP) offers assistance to small businesses and agricultural producers in New Mexico. We offer resources to reduce energy consumption, increase profits, and implement renewable energy systems.

Learn more at: https://nmruralbiz.com/

State Small Business Credit Initiative (SSBCI)
On March 11, 2021, President Biden signed The American Rescue Plan Act (ARPA), which reauthorized and funded the State Small Business Credit Initiative (SSBCI). New Mexico is allocating capital to TWO different programs:

Venture Capital/Equity Funds
Collateral Support
Learn more at https://edd.newmexico.gov/business-development/edd-programs-for-business/ssbci/

Other Business Incentive Programs
Learn more about the business incentive programs in New Mexico by industry at https://edd.newmexico.gov/choose-new-mexico/competitive-business-climate/incentives/