NM High Wage Jobs Tax Credit

NM High Wage Jobs Tax Credit

Supports New Mexico employers creating higher-paid jobs through a refundable wage-based tax credit for qualifying hires.

Eligibility · United States · US-NM

The New Mexico High Wage Jobs Tax Credit (NMSA 1978 §7-9G-1) is a refundable state tax credit administered by the New Mexico Taxation and Revenue Department (TRD) Business Credit Audit Team. The program incentivizes private-sector employers operating in New Mexico to create high-paying jobs by providing a per-hire credit of 8.5% of wages paid per qualifying new job, capped at $12,750 per job per year. The credit is claimable for up to four years per qualifying employee, making the total maximum credit per hire $51,000 over the four-year window. Because the credit is refundable, amounts exceeding the employer's tax liability are returned as cash.

To qualify, new jobs in urban municipalities (defined as those with populations of at least 60,000 per the most recent federal decennial census) must pay a minimum annual salary of $60,000. New jobs in rural areas must pay at least $40,000 annually. There is no sector restriction — the credit applies to any for-profit business operating in New Mexico that creates qualifying wage positions. A critical eligibility deadline applies: qualifying new high-wage jobs must be created prior to July 1, 2026, to be eligible for the credit. Jobs already in a four-year crediting window at that date continue to earn credits through the end of their window; however, no new jobs created on or after July 1, 2026 are eligible absent legislative renewal.

Applicants must file TRD Form RPD-41288 (Application for High-Wage Jobs Tax Credit) no later than 12 months following the end of the calendar year in which the final qualifying period closes. The application must include the High-Wage Jobs Employee Eligibility Detail Report and the credit claim form. TRD's Business Credit Audit Team (TRD-BusinessCredit@tax.nm.gov) administers the program. Employers should confirm whether the New Mexico Legislature has extended or renewed the program for post-July 2026 new hires before committing hiring plans around this credit.