The Rural Job Tax Credit promotes the public policy of encouraging job growth in rural areas of New Mexico by awarding transferable tax credits proportionate to the number of eligible employees and remoteness of the location.
Like the Conservation Easement Tax Credit, this credit is tied to federal income tax principles and is complex in nature. The Rural Job Tax Credit is codified at NMSA Section 7-2E-1.1 (2007).
Eligible employers may earn the Rural Job Tax Credit for each qualifying job created after July 1, 2000, apply it to taxes due on CRS returns, or to corporate or personal income tax. Employers receive a credit of 6.25% of the first $16,000 in wages paid for a qualifying job. If the job is located in a Tier One location, the employer receives a credit for 4 consecutive years. Employers in a Tier Two location may take the credit for 2 consecutive years.
The Rural Job Tax Credit has a three year carryforward period and, like the Sustainable Building Credit, it may not be fragmented for purposes of transfer. It may be applied to corporate and personal income taxes, as well as “modified combined tax liability” as defined in NMSA 1978, 7-2E-1.1(J)(4) (2007). Please view our Comparison Chart for an overview.