Incentives
New Mexico offers some of the most aggressive incentives in the country to encourage job creation and investment. These include business friendly on-the-job training incentives as well as incentives which support investment in building, land, infrastructure and equipment. At the NMBorderplex, our team will walk you through each of the programs that your company may qualify for and guide you through the process. We also offer a complimentary analysis to estimate the potential value of these programs and how they impact your bottom line.
The NM Borderplex is constantly working to find innovative, new approaches to matching available financial and tax incentives along with grant and loan opportunities to businesses interested in expanding or establishing new facilities.
Let us match our resources with your plans! We can walk you through each of the programs that your company may qualify for and guide you through the process.
We also offer a complimentary analysis to estimate the sum value of all applicable awards so you understand exactly how it can positively impact your bottom line.
Cash Grants
NMBorderplex Closing Incentive
The NMBorderplex Incentive Program is a post-performance, economic-based, job creation grant managed by MVEDA with financial assistance from the NM Economic Development Fund (the Fund), a multipurpose economic development initiative administered by the CFSNM. This incentive is available to economic-based companies that illustrate capital investment in facilities and/or job creation within El Paso Electric’s New Mexico service territory.
Cash Reimbursements
Local Economic Development Act (LEDA)
New Mexico’s “job creation fund” consists of discretionary dollars that can be used toward investment in building(s), land, or infrastructure. Funds are granted to companies by the Cabinet Secretary of Economic Development in trade for a company’s job growth within New Mexico.
Local municipalities may provide additional local contributions (i.e., funding, infrastructure improvements, and deeding land) to increase the size of awards to companies creating jobs within their boundaries.
Job Training Incentive Program (JTIP)
For over 45 years, JTIP has funded on‐the‐job and classroom training for newly created jobs in expanding or relocating businesses for up to six months. The program reimburses a portion of employee wages, regardless of where the training occurs. Custom training at a New Mexico public educational institution is also available through this program. Reimbursements range from 50 to 85 percent depending on location within Doña Ana County and the wages paid. Additionally, those positions that are eligible for the High Wage Jobs Tax Credit can be filled by individuals who have been residents of New Mexico for only a single day.
Wage + Program
These funds are only available to companies located within the City of Las Cruces. To qualify, a company must first be eligible under the City’s Local Economic Development Act and complete the state’s JTIP program. Upon completion, those positions that pay 10 percent above the median wage are eligible for additional cash reimbursements under this program ($1,500 per qualified position).
Workforce Innovation & Opportunities Act (WIOA)
A federally funded program, WIOA reimburses 50 to 90 percent of wages paid to half of all trainees per contract period. This pool of funds can be used to pay for wages of non‐New Mexico residents. The qualifying positions must meet a minimum pay threshold. Reimbursements occur monthly upon timesheet submissions.
Property Tax Abatement
In New Mexico, we rank nationally as one of the lowest effective property-tax rates in the country. This is because we only tax on one‐third of the total valuation of real and personal property, netting the company a 67 percent discount over other locations in the country. We also do not tax inventory.
Industrial Development Bonds (IRBs)
An IRB exempts a substantial portion of a company’s property taxes and compensating taxes on real property (land and buildings) and personal property (equipment). This option typically abates 75‐80% percent of taxes under a 20‐year agreement. All capital investments should total between $4.5 and $5 million for this option to be viable.
Community Development Incentive Act (IRB LITE)
This incentive allows for the exemption of personal property taxes when no real property (land and buildings) is involved. These investments are typically smaller in value than an IRB and are available for up to 20 years.
Tax Credits
High Wage Jobs Tax Credit
This credit gives companies who hire New Mexico resident employees at salaries of $40,000 or higher in rural areas ($60,000 or more within the City of Las Cruces and 10 miles outside its limits), a deduction of the state’s portion of gross receipts tax, compensating tax, or withholding taxes, equal to 8.5 percent of the salary paid by the company for the year in which the job is created. This credit can be used for four years. If a company has exhausted its taxable liabilities, the remaining credit is paid back to the company.
Rural Jobs Tax Credit
The credit amounts to 25 percent of the first $16,000 in wages paid per job (up to $4,000), and can be claimed for four years (up to $1,000 per year per job) and can be applied to taxes due on (state) gross receipts, corporate income, or personal income tax. Companies must be at least 10 miles outside of the City of Las Cruces to claim this credit. This credit can be sold to other entities. Additionally, this credit does not require employees to be residents of New Mexico.
Investment Tax Credit
Manufacturers may take a credit of 5.125 percent of the value of qualified equipment and other property used in their operation. The credit can be applied again compensating, gross receipts, or withholding tax up to 85 percent of the total liability. Any remaining available credit may be claimed in subsequent reporting periods. To claim the credit, the company must hire one employee for every $500,000 investment to a total of $30 million. Thereafter, every $1 million investment must be accompanied with one new employee. If a company has done an IRB, the equipment would already be abated, allowing for this credit to create a duplicated value of abatement in that scenario.
