Single Sales Factor

Beginning January 1, 2014, New Mexico will begin phasing in a single sales factor apportionment methodology for corporations whose principal business activity is manufacturing.

For the purposes of apportioning income, “manufacturing” excludes construction, farming, power generation, and processing natural resources including hydrocarbons.

In addition, in taxable years that begin on or after January 1, 2015, corporate headquarters operations may elect to have business income apportioned to New Mexico subject to a single sales factor apportionment methodology.  

Five-Year Policy Changes:

Year Appointment
2014 Double-Weighted Sales
2015 Triple-Weighted Sales
2016 70% Sales
2017 80% Sales
2018 Single Sales Factor