High Wage Jobs Tax Credit

Please Note:  Changes were made to the High Wage Jobs Tax Credit in the recent 2019 Legislative Session.  These changes are reflected below, but do not become effective until July 1, 2019.  Questions should be directed to the 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 1/2% of the wages and benefits paid for each new economic-base job created, up to $12,750 per job.

Qualified jobs: 

  • Pays at least $40,000/year in a community with a population of less than 60,000
  • Pays at least $60,000/year in a community with a population of 60,000 or more
  • Occupied for at least 44 weeks by the employee

Qualified employers: 

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.

Qualified employees: 

  • Must be a resident of New Mexico.
  • 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.