High Wage Jobs Tax Credit

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 10% of the wages and benefits paid for each new economic-base job created.

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 48 weeks by the employee

Qualified employers: 

  • Are growing with employment greater than the previous year; and
  • Made more than 50% of its sales to persons outside New Mexico during the most recent 12 months of the employer’s modified combined tax liability reporting periods ending prior to claiming this credit; or
  • Are eligible for the Job Training Incentive Program

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 4 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 $12,000 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