POPULATION: 2,085,287 (2013 Census Bureau Estimate)
LABOR FORCE: 926,242 (2013 Bureau of Labor Statistics)
RIGHT TO WORK: No
TARGET INDUSTRIES:Aerospace and defense; advanced manufacturing; value-added agriculture; distribution, logistics and transportation; back office and technical support; energy and natural resources; digital and emerging media
COLLEGE GRADUATES: (Age 25 and over) 26.4% (Census Bureau ACS 1 year estimates)
BASIC BUSINESS TAXES:
Corporate Income Tax: 4.8 percent on the first $500,000 of net income; $24,000 plus 6.4 percent of income over $500,000 for income between $500,000 and $1 million; $56,000 plus 6.9 percent of income over $1 million with a scheduled phased tax rate reduction intended to bring the tax rate to 5.9 percent of excess over $500,000 in 2018 while maintaining the 4.8 percent on the first $500,00 of net income.
Sales Tax (Gross Receipts Tax): The gross receipts tax rate varies throughout the state from 5.125 percent to 8.6875 percent depending on the location of the business. Services that are exported from the state are not subject to New Mexico gross receipts tax. These services must be produced by a business with a New Mexico office, sold to an out-of-state buyer, and delivered and initially used out-of-state.
Property Tax:Real and tangible property is assessed at 33.3 percent of value, but many counties and municipalities offer abatements for new business locations and expansions. Personal Income Tax: New Mexico uses a four-bracket, graduated-rate table ranging from 1.7 percent to 4.9 percent of taxable income.
There is no state inventory tax
BUSINESS INCENTIVES:
High-Wage Jobs Tax Credit
Job Training Incentive Program
$15 million deal closing fund
Manufacturer's Investment Tax Credit
Rural Jobs Tax Credit
Technology Jobs Tax Credit
Industrial Revenue Bonds
Advanced Energy Deduction and Advanced Energy Tax Credit
Alternative Energy Tax Credit
R&D Tax Deduction and R&D Tax Credit
Beginning January 1, 2014, New Mexico began phasing in a single sales factor apportionment methodology for manufacturing companies; triple-weighted sales factor in 2015; 70% in 2016, 80% in 2017; and single sales factor in 2018.
Gross receipts taxes on consumables used in the manufacturing process (including electricity and industrial gasses) will be phased out by January 1, 2017.
Additional industry-specific incentives for aerospace, agribusiness, clean and renewable energy, technology and manufacturing, and telemarketing.
