Major Incentives

Significant real and personal property tax abatement and compensating tax and gross receipts tax exemptions can occur through the use of an Industrial Revenue Bond (IRB). An IRB is a loan from the bond purchaser to a company where the loan proceeds and repayment flows through a governmental issuer. 

The New Mexico Job Training Incentive Program is a highly flexible state program that provides on-the-job training. Customized training may be provided by post-secondary educational institutions, company trainers, or outside trainers. 

The Workforce Innovation & Opportunity Act (WIOA) is a federal program that provides a financial incentive to employers for hiring individuals and training existing employees. The WIOA program is administered through New Mexico Workforce Connection. 

The High Wage Jobs Tax Credit provides businesses with a tax credit equal to 8.5% of the value of salaries for each net new job paying a net taxable wage of at least $40,000 per year in rural communities.

For Rural Jobs Tax Credit, the maximum tax credit amount is 12.5% of the first $16,000 in wages paid for the qualifying job.

New Mexico tax law provides for a credit equal to 5.125% of the value of qualified equipment and other property used directly and exclusively in a manufacturing operation. The credit can be applied against compensating tax, gross receipts tax and withholding tax. 

The New Mexico Local Economic Development Act (LEDA) established a process for local governments to provide financial resources, or a “deal-closing fund,” for the attraction and support of new or growing eligible private-sector, economic-base business “projects” that can demonstrate additional funding is needed to close a competitive cost gap or make the project financially viable. 

NMFA partners with the New Mexico Economic Development Department in creating and operating finance programs that help stimulate the economy through job creation and business growth, particularly in rural and underserved areas of New Mexico. NMFA has implemented several economic development programs that meet these goals and help improve communities in New Mexico. 

 Business Programs provide financial backing and technical assistance to stimulate business creation and growth. The programs work through partnerships with public and private community based organizations and financial institutions to provide financial assistance, business development, and technical assistance to rural businesses. These programs help to provide capital, equipment, space, job training, and entrepreneurial skills that can help to start and/or grow a business.

The U.S. Small Business Administration (SBA) helps small businesses get funding by setting guidelines for loans and reducing lender risk. These SBA-backed loans make it easier for small businesses to get the funding they need.