Form Rpd-41239 - Application For Technology Jobs Tax Credit

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

RPD - 41239

Rev. 10/16/2015

Application for Technology Jobs Tax Credit Instructions

who is not an affiliate of the taxpayer.

A taxpayer may apply for approval of a credit within one

year following the end of the calendar year in which the

The value of qualified expenditure is the purchase price.

qualified expenditure was made.

If an allocation of expenditure is claimed, the cost account-

ing methodology used for the allocation of the expenditure

The technology jobs tax credit provisions are not available

shall be the same cost accounting methodology used by

for qualified expenditures made after January 1, 2015.

the taxpayer in its other business activities.

However, if you have been approved for the technology

jobs tax credit; you may carry forward any unused credit

Line 4 - Multiply the total amount of qualified expenditures

amounts in subsequent periods.

by 4% or by 8% if the qualified facility is in a rural area.*

This is the amount of your basic credit.

A taxpayer with expenditures made after January 1, 2015,

should review the Form RPD-41385, Application for Tech-

Line 5 - Multiply the total amount of qualified expenditures

nology Jobs and Research and Development Tax Credit,

by 4% or by 8% if the qualified facility is in a rural area.

to see if that credit is available to them.

This is the amount of your additional credit.

Line 1 - Qualified Research – means research that is

*Rural Area – means any area of the state other than

undertaken to discover information that is:

the state fairgrounds, an incorporated municipality with

•

Technological in nature

a population of thirty thousand or more according to the

•

Intended to be useful in the development of a new or

most recent federal decennial census and any area within

improved business component of the taxpayer, and

three miles of the external boundaries of the incoporated

•

Related to a new or improved function, performance,

municipality defined above. Listed below are links to maps

reliability or quality, but not related to style, taste, or

to help you determine if you are in a rural area.

cosmetic or seasonal design factors.

Line 2 - Qualified Facility – means a factory, mill, plant,

refinery, warehouse, dairy, feedlot, building or complex of

buildings located in New Mexico. These include the land on

which the facility is located and all machinery, equipment

and other real and tangible personal property located at or

within the facility and used in connection with the operation

of the facility. Any facility operated by the taxpayer for the

United States is excluded.

USING THE TECHNOLOGY JOBS TAX CREDIT

Line 3 - Qualified Expenditures – any expenditure or

The Basic Tax Credit may be applied against the taxpayer’s

allocated portion of an expenditure connected to qualified

compensating tax, gross receipts tax, or withholding tax

research at a qualified facility. Such expenditures include:

due to the state of New Mexico. No taxpayer may claim an

•

Depletable land and rent paid or incurred for land

amount of approved basic credit for any reporting period

Improvements

that exceeds the sum of the taxpayer’s gross receipts tax,

•

Allowable amounts paid or incurred to operate or

compensating tax, and withholding tax due for that report-

maintain a facility

ing period.

•

Buildings

The Additional Tax Credit may be applied against the

•

Equipment

taxpayer’s personal or corporate income tax. No taxpayer

•

Computer software

may claim an amount of additional credit for any reporting

•

Computer software upgrades

period that exceeds the amount of the taxpayer’s personal

•

Consultants and contractors performing work in New

or corporate income tax due for that reporting period. Mar-

Mexico

ried individuals may each claim only one-half the additional

•

Payroll

credit. A pass-through entity (PTE) approved for additional

•

Technical books and manuals

credit may pass the additional credit to its owners, partners

•

Test materials

or members using Form RPD-41368, Notice of Distribution

Qualified expenditures exclude any expenditure:

of Technology Jobs Tax Credit.

•

On property owned by a municipality or county in con-

nection with an industrial revenue bond project, or

Any amount of credit not claimed for a reporting period

•

On property for which the taxpayer has received any

may be claimed in subsequent reporting periods.

credit under the Capital Equipment Tax Credit Act or

the Investment Credit Act, and

Recapture - If the taxpayer or a successor in business

•

On property owned by the taxpayer or affiliate before

of the taxpayer ceases operations in New Mexico for 180

July 4, 2000, the effective date of the Technology Jobs

consecutive days within a two-year period, any approved

Tax Credit Act, or

unclaimed credit shall be extinguished. Within 30 days

•

On research and development reimbursed by a person

after the 180 days, the taxpayer shall pay the tax against

which an approved technology jobs tax credit was taken.

Form Rpd-41239 - Application For Technology Jobs Tax Credit - 2015 Page 2

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