Since 2003, Governor Richardson and
Secretary Homans have worked hard to improve the business climate of New Mexico
by making changes in tax policy and adding incentives for new job creation.
Some of these accomplishments include:
- Cut the personal income tax rate by 40%
- Reduced capital gains by 75%
- Enacted the High Wage Jobs Tax Credit
- Created a research & development small business tax credit
One very important incentives is the
Industrial Revenue Bond incentive, which can be used to finance buildings,
furniture, fixtures, and equipment for manufacturing projects in Santa Teresa.
Industrial Revenue Bonds (IRB)
issued by Doņa Ana County take about twelve weeks to process.
The bonds must be approved by the Doņa Ana
County Commission which weighs the benefit to the county
(i.e. increased jobs) versus potential loss in tax revenue.
Benefits derived from the use of IRBs include Property Tax exemption,
Gross Receipts and Compensation Tax exemptions and low interest rates.
Real and personal property included in an IRB project are exempt from
Property Tax in New Mexico for up to thirty years. Furniture, fixtures,
and equipment purchased with IRB proceeds are exempt from Gross Receipts
or Compensating Tax. The County, however, may ask for a payment in lieu
of taxes to support the school district. IRBs, especially "Tax Exempt"
IRBs, can have interest well below market interest rates.
Companies creating new business facilities can receive a property tax
exemption for up to 20 years. Contact the Homefield Advantage Team
for more information. Based on a one-on-one business call, a business
development team member can produce a free, customized analysis of
tax incentives and state programs that work for you.
To learn more, contact: Fabian Trujillo, Business Development Team Leader,
(505) 827-1734, Fabian.Trujillo@state.nm.us