Form Rpd-41167 - Application For New Mexico Investment Credit (Page 2 of 2) in pdf

RPD-41167

APPLICATION FOR NEW MEXICO INVESTMENT CREDIT

Rev. 11/14/2011

INSTRUCTIONS

The Investment Credit Act, Sections 7-9A-1 through 7-9A-11, NMSA 1978, provides a credit equal to 5.125 percent of the

value of certain equipment purchased or brought into New Mexico in connection with a manufacturing operation. You should

review Section 7-9A-3 for the statutory definitions of "equipment", "manufacturing operation" and other pertinent terms. Once

approved, the credit may be applied against a maximum of 85% of a taxpayer's gross receipts, compensating and with-

holding tax liability, but may not be taken against any local option gross receipts tax imposed by a county or a municipality.

PART I. QUALIFYING INFORMATION

Line 1: Determine the calendar year in which the equipment was purchased or introduced into New Mexico by the date the

equipment was first placed in service in New Mexico. You must claim the investment credit within one year following the end

of the calendar year in which the equipment is placed in service.

Line 2: To qualify for the credit, equipment must be subject to depreciation for purposes of the Internal Revenue Code. A

copy of a depreciation schedule that can be reconciled to your Federal Form 4562 and that contains a detailed description

of the equipment for which the credit is claimed must accompany your application. If you have not filed a federal income tax

return since the date the equipment was acquired, provide a pro forma Form 4562 using the method you will use to calculate

depreciation for federal income tax purposes. Include copies of invoices to support your purchases.

Line 3: Briefly describe your manufacturing operation. Note: Construction, farming, processing of natural resources and

most power generation are not manufacturing and consequently do not qualify as manufacturing operations for purposes

of the investment credit. For the period July 1, 2001 through May 14, 2002, the statute defined manufacturing to include

electricity generation at facilities in Chaves, Eddy, Lea, Luna, Roosevelt, Curry, Hidalgo and Rio Arriba counties. Effective

May 15, 2002, manufacturing includes electricity generation at all New Mexico facilities that do not provide regulated retail

services to New Mexico customers.

Line 4: To qualify for the credit, you must meet certain employment requirements. See the instructions for completing Form

RPD-41168, Application for New Mexico Investment Credit - Schedule A.

PART II. CALCULATION OF CREDIT CLAIMED

Line A: Use the equipment's adjusted basis for federal income tax purposes as reflected in the depreciation schedule filed

with your federal income tax return. If you have not filed a federal income tax return since the date the equipment was ac-

quired, establish the adjusted basis you will use to calculate depreciation for federal income tax purposes. You may be asked

to provide the Department with a copy of your federal depreciation schedule at the time it is filed with the IRS.

Line B: Multiply Line A by 5.125% to determine the investment credit claimed.

PART III. CERTIFICATIONS

You must certify that the statements set out under Part III are true and correct by placing a checkmark in the box next to

each statement.

FOR DIVISION USE ONLY

This application for an Investment Credit by

was reviewed by the Taxation and Revenue Department and was

•

Approved in the amount of

•

Adjusted and Approved in the amount of

•

Disapproved

Reason for Adjustment/ Disapproval

Signature of Director or Delegate

Date

Approval Number

Form Rpd-41167 - Application For New Mexico Investment Credit Page 2

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