Fillable Form Rpd-41238 - Application For Rural Job Tax Credit (Page 2 of 3) in pdf

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

RPD - 41238

Rev. 07/26/2013

Application for Rural Job Tax Credit Instructions

Page 1 of 2

The job is performed by:

ABOUT THIS CREDIT

The purpose of the rural job tax credit is to encourage

a. The person who performed the job or its functional

businesses to start new businesses in rural areas of New

equivalent prior to the business merger, acquisi-

Mexico.

tion or other change in organization; or

b. A person replacing the person who performed

The Rural Job Tax Credit Act, Section 7-2E-1.1 NMSA 1978

the job or its functional equivalent prior to the

provides a credit for eligible rural employers for wages paid

business merger, acquisition or other change in

to an eligible employee for each qualifying job the employer

organization.

creates after July 1, 2000. The amount of the rural job tax

credit is 6.25% of the first $16,000 in wages paid for the

If, however, a qualifying job that was created by another

qualifying job in a qualifying period. An eligible employee

employer and for which the rural job tax credit claim was

must occupy the qualified job for at least 48 weeks.

received by the Taxation and Revenue Department prior

to July 1, 2013, and is under review or has been approved

The Rural Job Tax Credit may be claimed for each qualify-

shall remain eligible for the rural job tax credit for the bal-

ing job for a maximum of four qualifying periods if the job

ance of the qualifying periods for which the job qualifies

is performed or based at a location in a tier one area, and

by the new employer that results from a business merger,

two qualifying periods if the job is performed or based at

acquisition or other change in the organization.

a location in a tier two area.

A job shall not be eligible for a rural job tax credit pursuant to

Definition of Tier Areas and Rural Area

this section if the job is created due to an eligible employer

A rural area excludes Albuquerque, Corrales, Farmington,

entering into a contract or becoming a subcontractor to a

Las Cruces, Los Alamos County, Los Ranchos, Rio Ran-

contract with a governmental entity that replaces one or

cho, Santa Fe, or Tijeras, or any area within a ten-mile

more entities performing functionally equivalent services

zone around any of these municipalities. A tier two area is

for the governmental entity in New Mexico unless the job

within the cities of Alamogordo, Carlsbad, Clovis, Gallup,

is a qualifying job that was not being performed by an

Hobbs, and Roswell. A tier one area is anywhere within

employee of the replaced entity.

New Mexico not listed above.

Definition of Qualifying Period

Definition of Eligible Employer

A period of 12 months beginning on the day an eligible

An employer who is eligible* for Job Training Incentive

employee began working in the qualifying job, or a period

Program (JTIP) assistance by the New Mexico Economic

of 12 months beginning on the anniversary of the day an

Development Department, pursuant to Section 21-19-7

eligible employee began working in a qualified job.

NMSA 1978. To learn more about JTIP assistance contact:

New Mexico Economic Development Department, Joseph

Definition of Wages

Effective July 1, 2013, wages means all compensation paid

M. Montoya Building, 1100 So. St. Francis Drive, Santa

Fe, NM 87505-4147 or call: (505) 827-0300 or (800) 374-

by an eligible employer to an eligible employee through

3061. Their Internet address is:

the employer's payroll system, including those wages the

employee elects to defer or redirect, such as the employee's

*Prior to July 1, 2013, the employer needed to be ap-

contribution to 401(k) or cafeteria plan programs, but not

proved for JTIP assistance. Effective July 1, 2013, an

including benefits or the employer's share of payroll taxes.

eligible employer qualifies when they can show that they

are eligible for JTIP assistance.

CERTIFICATIONS

The employer shall certify the amount of wages paid to

Definition of Qualifying Job

each eligible employee during each qualified period, the

A job established by an eligible employer that is occupied

number of weeks during the period the position was oc-

by an eligible employee for at least 48 weeks of a qualify-

cupied, and whether the qualifying job was in a tier one or

ing period.

a tier two area. Form RPD-41247, Certificate of Eligibility

for the Rural Job Tax Credit, must be completed for each

A qualifying job shall not be eligible for a rural job tax credit

eligible job within an eligible period. Certificates must be

pursuant to this section if:

notarized and submitted with the application.

The job is created due to a business merger, acquisi-

tion or other change in organization;

APPLICATION

The eligible employee was terminated from employ-

Apply to the Taxation and Revenue Department (TRD)

ment in New Mexico by another employer involved in

for the credit by completing Form RPD-41238, Applica-

the merger, acquisition or other change in organiza-

tion for Rural Job Tax Credit. Complete Form RPD-41247,

tion; and

Certificate of Eligibility for the Rural Job Tax Credit, for

Form Rpd-41238 - Application For Rural Job Tax Credit Page 2

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