New Mexico Rural Job Tax Credit

Rural Job Tax Credit.
A Rural Job Tax Credit is available for employers in rural areas of New Mexico who qualify for Job Training Incentive Program assistance. Eligible employers may earn the rural job tax credit for each qualifying job created after July 1, 2000. The employer must certify the wages paid to each eligible employee. See Form RPD-41247, Certificate of Eligibility for the Rural Job Tax Credit, on the TRD web site, www.tax.state.nm.us.

Calculate the Rural Job Tax Credit at 6.35% of the first $16,000 in wages paid for each qualifying job for no more than four qualifying periods in a Tier 1 area, and no more than two qualifying periods in a Tier 2 area. The rural area excludes Albuquerque, Los Ranchos, Corrales, Rio Rancho, Tijeras, Santa Fe and Las Cruces and a ten-mile zone around these municipalities. Tier 2 areas are limited to Roswell, Clovis, Carlsbad, Hobbs, Gallup, Alamogordo and Farmington. Tier 1 is any rural area not part of a Tier 2 area. A qualifying period is 12 months.

The holder of the Rural Job Tax Credit document may apply all or part of the credit against the holderÆs combined state gross receipts, compensating and withholding taxes, or personal or corporate income tax. When you file your personal income tax return, indicate the amount of the credit you wish applied to your liability.

To see if you qualify for job training incentive program assistance, review the instructions for Form RPD-41238.

To apply for this credit, complete Form RPD-41238, Application for Rural Job Tax Credit, attach a notarized completed Form RPD-41247, Certificate of Eligibility for the Rural Job Tax Credit, for each qualified job you claim in the eligible period, and send it to the address on the form.

Once approval is received from TRD, complete Form RPD-41243, Rural Job Tax Credit Claim Form, and submit it with your Form PIT-1.

For assistance claiming the credit, call TRD at (505) 476-3683.