NEW MEXICO R&D TAX CREDIT SUMMARY
New Mexico Technology Jobs and R&D Tax Credit
New Mexico allows taxpayers conducting qualified research in New Mexico and making qualified expenditures to claim the basic technology jobs and research and development tax credit. The taxpayer is also entitled to an additional credit if annual payroll expenses increase by $75,000 over base payroll for every $1,000,000 in qualified expenditures claimed by the taxpayer in a tax year in the same claim. A taxpayer may apply for approval of a basic credit within one year following the end of the reporting period in which the qualified expenditure was made.
The Basic Tax Credit may be applied against the taxpayer’s compensating tax, withholding tax or gross receipts tax (excluding local option gross receipts tax), due to the state of New Mexico. No taxpayer may claim an amount of approved basic credit for any reporting period that exceeds the sum of the taxpayer’s compensating tax, withholding tax and gross receipts tax (excluding local option gross receipts tax) due for that reporting period. Approved basic credit may be carried forward for a period of up to three years from the date of the original claim.
The Additional Tax Credit may be applied against the taxpayer’s personal or corporate income tax. Except for qualified research and development small businesses, no taxpayer may claim an amount of additional credit for any reporting period that exceeds the amount of the taxpayer’s personal or corporate income tax due for that reporting period.
