BUSINESS INCENTIVES

Highly flexible state program to provide classroom and on-the-job training for qualified employees of qualified employers. Customized training may be provided by post-secondary educational institutions, company trainers, or outside trainers.

The state will reimburse for:

• Up to 50 percent of trainees’ wages up to 1,040 hours for companies located in urban areas and up to 65 percent of trainees’ wages up to 1,040 hours for companies located in rural areas
  • Companies may receive an additional wage reimbursement of 5 percent for an eligible high-wage job
  • Companies may receive an additional 5 percent reimbursement for one of the three following conditions, provided the entry wage is at least the minimum rate for the Job Zone as outlined in the JTIP wage chart for Zones 1, 2, 3 and 4:
    • Trainee has graduated within the past twelve months from a post-secondary training or academic program at a New Mexico institution of higher education
    • Trainee is a U.S. Veteran
    • Trainee has graduated out of the New Mexico Foster Care System
• Classroom training costs provided by New Mexico post-secondary educational institutions, ($35 per hour for instructors’ time capped at $1,000 per employee).

Company Eligibility

• Must be a new or expanding company in New Mexico that manufactures/produces a product or a non-retail service company that generates more than 50 percent of its revenue from outside the state.
  • Contract-based customer service centers must provide evidence of a minimum 5-year lease or purchase of a facility in New Mexico.
  • Contract-based customer centers must offer employees and their dependents health insurance coverage and must contribute at least 50 percent of the premium for health care insurance for those employees who choose to enroll.
• Corporate, international, national, regional and divisional headquarters located in New Mexico may qualify provided at least 50 percent of revenues are derived from operations outside New Mexico.
• Manufacturers which perform research and development and engineering functions for their own products in New Mexico, but manufacture elsewhere are eligible.
• Start-ups and early stage manufacturing company may be eligible. The company must be adequately capitalized to reach first production and/or able to deliver service per criteria and procedures as set forth by and at the discretion of the JTIP board.
• Distribution is another category of non-retail business service providers. Distributors qualify for JTIP if at least 50 percent of their customer base is located outside of New Mexico.
• Aviation Maintenance, Repair and Overhaul (MRO) operations qualify for JTIP.

Conditions

• Maximum wage reimbursement is tied to hours required to learn the job and the hourly wage.
• “Hands-on” or production jobs qualify; technical jobs such as first-line supervisors and engineering generally qualify; support, administrative and sales positions are limited to 20 percent of total number of positions that qualify for funding, e-training does not qualify for assistance.
• Companies can apply for subsequent assistance if they have maintained hiring levels that exceed the peak employment as established by the initial application.
• In urban areas, companies hiring more than 20 people must offer health insurance and subsidize at least 50 percent of the premium for employees who elect coverage.
• Temporary to permanent employees qualify provided trainees become full-time employees of the company prior to the end of the approved training period; and trainees working through temporary agency receive comparable medical, dental and vision benefits as full-time employees of the company.
• Positions must be filled within 6 months of JTIP application approval.
• Reimbursement is subject to availability of funds and approval by the Job Training Incentives Board.

For more information please visit the New Mexico Economic Development Business Development Center: Job Training Incentive Program.

Provides businesses with a tax credit equal to 8.5 percent of salaries for each net new job paying a net taxable wage of at least $60,000 per year in the Albuquerque metropolitan area and other communities larger than 40,000 in population. Companies located in communities with a population less than 40,000 are eligible for the same tax credit for each net new job paying a net taxable wage of at least $40,000. Qualified employers can take the credit for four years. The refundable credit can be applied against the modified combined tax liability of the taxpayer, including the state portion of the gross receipts tax, compensating tax and withholding tax. Excludes the local portion of the gross receipts tax. This credit is set to sunset on June 30, 2026.

Conditions

• Net taxable wages must equal at lease $60,000 in an urban community or $40,000 in a rural area to qualify as a high wage job.
• Net taxable wages include: hourly wage, bonus, salary, vacation, sick/holiday time.
• Company must be eligible for the Job Training Incentive Program (JTIP), as defined in the JTIP 2019 Policy and Procedures Manual.
• Employer must be growing in employment greater than the year before.
• Eligible employees cannot be relatives of the qualified employer or own more than 50 percent of the company.
• Jobs must be occupied by an eligible employee for 44 weeks.
• The credit will not exceed $12,750 per eligible employee in each qualifying period.
• Any taxpayer that ceases operations in New Mexico must wait at least 2 calendar years before submitting a new application for the credit.