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.
Sandoval County, which encompasses most of Rio Rancho, has a labor force of about 60,000 people. Rio Rancho’s adjacency to Albuquerque allows it to draw from the largest labor pool in New Mexico – about 400,000 workers in the Albuquerque MSA. The metro area boasts a capable and quality workforce for prospective employers.
Sandoval County’s Labor Force: 59,983
Sandoval County’s Number of Unemployed: 3,916
Sandoval County’s Unemployment Rate: 6.5%
*Data provided by NM Department of Work Force Solutions, 2015 preliminary data.
Unique to New Mexico and the MSA is a large population of a dubbed “creative class” workforce. In his book “The Rise of the Creative Class,” Richard Florida ranked the Albuquerque MSA as the #1 creative place among medium sized regions. Encouraged by New Mexico’s long artistic history, more and more New Mexican workers are engaged in occupations of creation: scientists, artists, entrepreneurs, writers, engineers, musicians, and inventors. New Mexico also boasts the highest per capita Ph.D. ratio than any other State, with the majority in engineering or science related fields.
The following table illustrates labor availability, and current average wage for customer service representatives, and financial clerks located within the metro area:
|Industry||Labor Availability||Average Hourly Wage|
|Customer Service Representative||1,840||$12.50|
|Financial Clerks, all others||5,842||$16.81|
|Office and Administrative Support Occupations||5,835||$10.05|
An Education Capability Adaptable for Future Needs
Rio Rancho Public Schools, founded in 1994, serves more than 17,000 students through a public pre-school, ten elementary schools, one elementary Montessori school, four middle schools, two comprehensive high schools, an alternative school and a cyber academy. The district is known for rigorous academic expectations and strong academic achievement, along with robust and award winning fine and performing arts at all grade levels and championship athletic teams.
Rio Rancho Public Schools graduation rate of 84.4% is well ahead of the national average and is the highest graduation rate in the state for large school districts. Albuquerque Business First ranked Rio Rancho Public Schools #2 of the 25 largest districts in New Mexico based on Student Proficiency Levels. In addition, Rio Rancho Public Schools received the highest level of productivity on the Center for American Progress’ Return on Educational Investment.
University of New Mexico Statistics
The following table illustrates the latest enrollment numbers (Spring Semesters) for UNM, UNM West, and UNM Online Education.
|UNM Headcount (Overall)||27,305||27,278||27,197||26,749||25,816|
|UNM West Headcount (in Rio Rancho)||706||736||913||1,568||1,097|
|UNM Online Headcount||3,616||5,602||7,456||8,026||8,086|
Central New Mexico Community College Statistics
CNM offers a range of 75 Associates Degrees, and 57 certificate programs. The next table illustrates Central New Mexico’s Community college enrollment for the Fall Semester, 2014. In addition, the table also illustrates the number of degrees awarded by the end of the previously mentioned semester.
|CNM Data||Fall 2014|
|CNM Westside Enrollment (in Rio Rancho)||3,393|
|CNM Rio Rancho Enrollment||1,213|
|Associate Degree Graduates||1,734|
|Certificate Degree Graduates||1,096|
|Total CNM Graduates||2,830|
Rio Rancho Public Schools
Rio Rancho Public Schools, founded in 1994, serves more than 17,000 students through a public pre-‐school, ten elementary schools, four middle schools, two comprehensive high schools, an alternative high school, and a cyber-‐academy. The district is known for rigorous academic expectations and strong academic achievement, along with robust fine and performing arts programs at all grade levels and championship-‐winning athletic teams.
Two high schools – Rio Rancho Cyber Academy and Cleveland High School – have graduation rates exceeding 90%. More than two-‐thirds of RRHS students take the ACT Exam, with results exceeding the national average overall and in all four tested subject areas. Rio Rancho’s high schools graduated 84% of the Class of 2013, well ahead of the national average, and the highest graduation rate in the state for large school districts.
City/ County developer friendly