Technology Jobs Tax Credit

The Technology Jobs Tax Credit is 4% of qualified expenditures for conducting research and development. An additional 4% credit is available if the taxpayer increases its annual payroll by at least $75,000 for every $1 million in qualified expenditures it claims in a tax year. The basic and additional credits double for businesses in rural areas. The taxpayer must make the eligible expenditures for research and development at a qualified facility. Among such expenditures are expenses for depletable land and rent paid or incurred for land or improvements. For a complete list of qualified expenditures, see the instructions for Application for Technology Jobs Tax Credit, RPD-41239. The holder of the Technology Jobs Tax Credit document may apply all or part of the credit against the holders combined state gross receipts, compensating and withholding taxes. If you have earned additional credits, you may claim that amount on personal or corporate income taxes. When claiming the credit against your personal income tax, indicate the amount of the credit you wish applied to your liability. Attach a copy of the Technology Jobs Tax Credit Claim Form, RPD-41244. For approval of the Technology Jobs Tax Credit, complete the Application for Technology Jobs Tax Credit, RPD- 41239. Send it to the Taxation and Revenue Department. Call (505) 827-0867 for more details.

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