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The Investment Credit Act
Investment credits are available to manufacturers locating in Santa Teresa
and are a reward for increasing employment in the area. Manufacturers are
allowed to take a tax credit equal to 5% of the value of equipment and machinery
used for manufacturing. If the equipment is used or moved in from outside New
Mexico, the credit is determined based on its book value. The Investment Credit
Act can be used to reduce Gross Receipts and Compensating, or Withholding Tax owed
to the state, not to exceed 85% of tax liability in any one of those categories.
Credits not claimed in one reporting period may be carried forward and applied to
subsequent periods.
To qualify for the Investment Credit a company must hire new workers.
The employment requirement schedule is as follows:
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For Claims Of:
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One new worker must be hired for each:
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$0 to $30,000,000
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$500,000 in qualified equipment
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$30,000,001 +
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$1,000,000 in qualified equipment
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The Investment Credit Act Reward Employers for Hiring Workers
The Investment Credit Act may be claimed for equipment acquired with Industrial
Revenue Bonds. To receive credit, the manufacturer applies to the New Mexico
Taxation and Revenue Department by the end of the year in which the equipment
was purchased or introduced into New Mexico. Construction, power generating and
natural resource processing companies are not considered manufacturers and therefore
do not qualify for the credit.
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