Incentives and Tax Credits Overview
New Mexico and the City of Rio Rancho offer eligible firms access to a variety of incentives and support services. These programs are designed to assist companies locate, grow, and expand in the state. The City of Rio Rancho has a Local Economic Development Act (LEDA) and local incentives, such as its City-‐owned land and proficiency in fast-‐tracking are offered as an incentive ONLY to companies that export 60% or more of their product or their services outside of the Albuquerque MSA and/or State.
Sandoval Economic Alliance supports your client in maximizing these incentives and tax credits at start-‐up. We also conduct regular reviews with local companies to educate and position them for further growth using the latest tax and incentive rules that change frequently.
Potential project support and incentives include, but are not limited to, the following items.
Incentives to Reduce Capital and Lease Costs
Local Economic Development Act (LEDA)
The state of New Mexico and or the local municipality can issue a payment (to be negotiated) to offset start-‐up costs. These funds can be used to reduce infrastructure costs, tenant improvement costs and/or lease abatements for a period of time.
Incentives to Reduce Training and Hiring Costs
Job Training Incentive Program (JTIP)
The state of New Mexico reimburses 50% of approved training hours for approved jobs for up to six months per job funded annually by legislative decision; funded at $7.9 million for the 2013-‐14 fiscal year.
Workforce Investment Act (WIA)
The Workforce Investment Act, or WIA, reformed Federal job training legislation and created a new and comprehensive workforce investment system. Title I of WIA authorizes a number of services that include employment and training activities for adults, dislocated workers, and youth.
Work Opportunity Tax Credit (WOTC)
WOTC is a federal tax credit that encourages employers to hire workers from nine target groups. The tax credit is designed to help job seekers gain on-‐the-‐job experience, move towards economic self-‐sufficiency, and help reduce employers’ federal tax liability.
Out-of-State Tuition Waivers and Lottery Scholarships (for transfer employees)
The state of New Mexico provides transferring employees’ and their children in-‐state tuition & eligibility to the State’s Lottery Scholarship, which pays 100% of tuition for eight consecutive semesters of eligibility beginning with the second semester of college enrollment.
Incentives to Reduce Operational Costs
High Wage Jobs Tax Credit
A taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-‐wage economic-‐base job. The credit amount equals 10% of the wages and benefits paid for each new economic-‐base job created.