State of New Mexico Incentives
New Mexico State Incentives
- Job Training Incentive Program (JTIP)
- New Market Tax Credits (NMTC)
- NM Credit Enhancement Program (CEP)
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% of trainees’ wages up to 1,040 hours for companies located in urban areas and up to 65% of trainees’ wages up to 1,040 hours for companies located in rural areas.
- Companies may receive an additional wage reimbursement of 5% for an eligible high-wage job.
- Companies may receive an additional 5% 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 taken the WorkKeys® assessment as a part of the hiring process.
- 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.
Classroom training costs provided by New Mexico post-secondary educational institutions, ($35 per hour for instructors’ time capped at $1,000 per employee).
The New Mexico Finance Authority operates the NMTC program on behalf of the State of New Mexico. The NMTC program was established primarily to provide greater access to financing for new, expanding, or relocating businesses in underserved areas. Projects eligible for NMTC funding must be located in qualified census tracts. These tracts are generally located in “highly distressed” areas.
Characteristics of these census tracts:
- Poverty above 30%
- Median family income below 60% of statewide median
- Unemployment above 1.5 X national unemployment rate
To quickly check eligibility, enter the address in the Reznick Group’s NMTC Qualifying Census Tracts Mapping Tool.
Contact Juan Torres, director of finance development programs, Juan.Torres@state.nm.us, or 505.827.0238.
To support business growth in New Mexico and to create and retain jobs, the state Economic Development Department (EDD) encourages banks and other financial institutions to make loans to New Mexico small businesses in underserved markets. NMEDD can pledge cash to cover a collateral shortfall of a loan to enable financing that otherwise might not be available to a small business. The program is administered through the NMEDD’s Finance Development Team (FDT).
Eligible borrowers must meet these criteria:
- Business purpose is one of the industries listed in the North American Industry Classification Systems (NAICS) codes list
- Business is considered a small business under the U.S. Small Business Administration – 750 employees or fewer full-time equivalents
Loan proceeds can be used toward the following:
- Any tangible or intangible asset purchase, including construction, renovation, or improvements of an eligible place of business
- Start-up costs
- Working capital
- Franchise fees
- Bridge loans needed before the borrower obtains permanent financing or support
How it works:
- Cash support up to 50% of the principal based upon qualifying criteria for under-collateralized loans
- Preference is given to businesses for the following: located in underserved, rural, economically distressed, or metropolitan redevelopment areas; minority-owned; veteran-owned; generating income from outside the state; and creating jobs
- Before issuance of a loan, the participating lender submits a Credit Enhancement Program (CEP) request to NMEDD FDT
- Once approved by NMEDD FDT, CEP approval is sent to the lender. This commitment can be called upon for up to 90 days after issuance
- Once the loan is finalized, NMEDD FDT funds the CEP contribution. A separate account is opened for each loan that is enrolled in CEP
- Within 15 business days of loan closing, the lender submits the final loan information and notifies NMEDD FDT that the loan was funded
To learn more, contact 505.827.0264, or email Johanna.firstname.lastname@example.org.