A Rural Job Tax Credit is available for employers in rural areas of New Mexico who qualify
for Job Training Incentive Program assistance. Eligible employers may earn the rural job tax credit for each qualifying job created after July 1, 2000. The employer must certify the wages paid to each eligible employee. See Form RPD-41247, Certificate of Eligibility for the Rural Job Tax Credit, on the TRD web site, www.state.nm.us/tax.
Calculate the Rural Job Tax Credit at 6-1/4% of the first $16,000 in wages paid for each qualifying job for no more than four qualifying periods in a Tier 1 area, and no more than two qualifying periods in a Tier 2 area. The rural area excludes Albuquerque, Los Ranchos, Corrales, Rio Rancho, Tijeras, Santa Fe and Las Cruces and a ten-mile zone around these municipalities. Tier 2 areas are limited to Roswell, Clovis Carlsbad, Hobbs, Gallup, Alamogordo, Farmington and Las Vegas. Tier 1 is any rural area not part of a Tier 2 area. A qualifying period is 12 months.
The holder of the Rural Job Tax Credit document may apply all or part of the credit against the holders combined state gross receipts, compensating and withholding taxes, or personal or corporate income tax. When you file your personal income tax return, indicate the amount of the credit you wish applied to your liability. Attach a copy of the Rural Job Tax Credit Claim Form, RPD-41243.
For Taxation and Revenue Department approval of Rural Job Tax Credit, complete the Application for Rural Job Tax Credit, RPD-41238. Call (505) 827-0867 for more details.
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