Fund at $20 million the state’s premier economic development program for recruiting companies and supporting new jobs for New Mexicans. Make JTIP funding a part of the Economic Development Department’s base budget.
As New Mexico’s most effective statewide economic development tool, consistent and adequate funding is needed for JTIP. Funds support jobs for New Mexicans by subsidizing trainee wages for qualified employees.
Maintain Current Corporate Income Tax Reporting Options: HB 51 (Wirth) - This bill was tabled in House Taxation & Revenue Committee which means NM has maintained its current corporate tax reporting options.
New Mexico’s current corporate income tax structure allows multi-state businesses to choose among three methods for filing and calculating corporate income tax. While some states do not have a corporate income tax, as long as New Mexico has a corporate income tax, having options for filing makes the tax less onerous.
More than two-thirds of all states that have a corporate income tax provide multi-state businesses filing methods similar to those now provided by New Mexico. Eliminating these choices and mandating members of corporate groups report based on either a “unitary” or federal consolidated group method would render New Mexico less competitive when seeking to attract large national or international businesses. It would also disrupt the economic expectations of businesses that located in New Mexico based on the ability to choose among the three allowed options.
High Wage Jobs Tax Credit Extension: HB 326 (Heaton) & SB 174 (Sanchez) - High Wage Jobs Tax Credit was extended to July 1, 2015; credit remains the same in all other respects.
Extend the sunset date for the High Wage Jobs Tax Credit at least four years from July 1, 2009 to July 1, 2013. This incentive provides an annual tax credit equal to 10 percent of wages and benefits for new jobs paying at least $28,000 in a rural community and $40,000 in an urban community. Qualified employers are those eligible for JTIP and that have more than 50 percent of their sales outside of New Mexico.
Extending the credit sends a clear message about the importance of high-paying jobs in New Mexico. Because companies considering a location in New Mexico generally have at least a 3 to 5 year hiring horizon this credit needs a similar time horizon to be effective. This credit is one of the New Mexico’s most powerful economic development incentives and has clearly helped tip the scales in the state’s favor for several projects.
R & D Small Business Tax Credit Extension: HB 325 (Heaton) - This bill died on adjournments of the session. Therefore, the tax credit is still set to sunset on June 30, 2009. Will try again in the 2009 legislative session to extend the sunset.
Extend the sunset date of the Small Business Technology Tax Credit at least four years from June 30, 2009 to June 30, 2013. This credit was created to encourage R&D investment in the state by providing small companies with a three-year “tax holiday.” The tax credit is available to businesses with total revenue of $5 million or less, no more than 25 employees and qualified research expenditures of at least 20 percent of total expenses.
New Mexico prides itself in its technological resources. Turning these resources into businesses and jobs is the challenge. This incentive is designed to support the growth of these “jobs of the future” in New Mexico.
Co-op Funding: HB 108 (Garica) - Funding to continue at $425,000.
Provide at least $500,000 for the Economic Development Cooperative Advertising Program and make the funding part of the department’s base budget. Last year’s increase in funding to $425,000, coupled with an aggressive outreach effort by the Economic Development Department resulted in many communities participating in the program for the first time. Adequate funding will allow more local and tribal governments and community non-profit economic development organizations the opportunity to access these key advertising funds.
Adequate Co-op funding will enhance our communities’ ability to showcase their assets and successfully compete for quality jobs and economic prosperity.
Business Incubators: SB 86 (Leavell) - Received $110,000, significantly below the goal of $1 million.
Provide $1 million of funding to support the development and operations of business incubators in communities across New Mexico. These funds will provide business incubator support in three categories: feasibility analysis, planning and development, and program delivery and operations.
Government support for well-managed business incubator programs represents important investments in local and regional economies. Research has shown that for every $1 of public operating support provided incubators, their clients and graduates generate approximately $30 in local tax revenues. Nationally, over 80% of firms that graduate from incubators remain in business after five years and over 80% of those firms remain in their local communities.
MainStreet: HB 440 (Taylor) & SB 343 (Ingle) - Received $1 million in captial outlay funding, but recieved no funding for Revolving Loan Fund.
Provide $4 million in capital outlay for MainStreet communities for planning, design and construction activities. Provide $500,000 to the New Mexico MainStreet Revolving Loan Fund for low interest, micro-loans targeted at small, but high-impact, projects such as business expansion and community beautification.
New Mexico's main streets are rich in economic opportunity, history and cultural diversity. The 19 statewide communities that are New Mexico MainStreet members have spawned new businesses, fostered building rehabilitations, generated millions of dollars in public reinvestment and brought new jobs to their communities. Funds invested by the state are matched locally from both public and private sources.
Read this newspaper article about HB 51 and the Incentives for Jobs Coalition:
Economic Developers Make a Difference at the Legislature
2008 Incentives for Jobs Brochure
2008 Incentives for Jobs Resolution
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