The State of New Mexico and Doña Ana County offer attractive incentives for new or expanding businesses locating into the area and many can take advantage of these programs. For full details please call Anthony-Berino Economic Development at (505) 882-3999 or see Reasons to locate at the MVEDA website or New Mexico Economic Development web site.
Industrial Revenue Bonds—Industrial Revenue Bonds (IRBs) can be used to finance buildings, equipment, fixtures and furniture for manufacturing projects. IRBs must be approved by the local government
The Investment Credit Act - In order to promote local employment opportunities, investment credits are available to manufacturers that locate in Doña Ana County.
Industrial Development Training Program - The Industrial Development Training Program provides funds for training projects.
Property Tax Exemption
For qualifying industry financing with Industrial Revenue Bonds, local government may, at their discretion, offer a real estate and personal property tax exemption for up to 30 years.
Gross Receipts & Compensating Tax Deduction
Equipment and fixtures purchased for a facility financed with IRBs is exempt from the gross receipts & compensating tax of 5%.
Double-Weighted Sales-Apportioning Corporate Income Tax
Use of a new four-factor formula in computing New Mexico state income tax for corporations can save money for businesses that have a majority of their sales outside the State.
'800' & WATS Line Tax Exemption
State law exempts taxes from certain private communication services, including 800/WATS-line services.
Research & Development Tax Reduction
Research & Development services provided by a business with a New Mexico office is not liable for gross receipts tax when delivered out-of-state for an out-of-state buyer.
Corporate Child Care Tax Credit
Corporations that choose to pay for the day care of their employees' dependent children may earn a corporate tax credit of 30% of the cost of the care, not to exceed $30,000 annually. Any unused credit can be carried forward three consecutive years.
Cultural Preservation Tax Credit
A company that participates in a project to restore, preserve or rehabilitate a property listed in the New Mexico Register of Cultural Properties may receive a tax credit of up to $25,000. Unused credits may be carried forward up to four consecutive years.
STATE SPONSORED COMMUNITY DEVELOPMENT
Block Grants, Loans and Grants
Community Development Block Grant (CDBG) Loan Funds are allocated to the economic development setaside program on an annual basis. CDBG loans can be used for the acquisition of real property and equipment, working capital and construction.
New Mexico Business Participation Loans
The State Investment Council may invest a portion of the Severance Tax Permanent Fund in real property-related business loans.
New Mexico Severance Tax Loan Program
The State of New Mexico can purchase up to $20 million of bonds, notes, debentures or other evidence of indebtedness (excluding commercial paper) when the proceeds are used for the establishment or expansion of business ventures in the State.
Community Development Revolving Loan Fund
The Revolving Loan Fund enables political subdivisions to construct or implement projects to encourage the location of industry.
START UP/SEED, GROWTH, LATE STAGE & VENTURE CAPITAL FINANCING
New Mexico's 27J Exemption
The 27J Exemption allows a small business to raise funds through offerings of up to $1.5 million by paying a nominal fee of $350.
State of New Mexico Investment Council Venture Capital Investment
This program, administered by the New Mexico Economic Development Department in Santa Fe, provides capital to partnerships and partners having significant venture capital experience and demonstrating successful investment performance records.
OTHER STATE-WIDE ECONOMIC DEVELOPMENT FINANCE PROGRAMS
Enchantment Land Certified Development Company (ELCDC)
The ELCDC, located in Albuquerque, is an SBA-licensed not-for-profit organization that is authorized to administer the SBA 504 loan program. A 504 program provides long-term (20 years), low down payment (10%), fixed-rate loans for land, buildings and equipment for expanding small businesses. ELCDC sells a debenture with a 100% SBA guarantee for up to 40% of the project, or $750,000 (up to $1 million in some cases), and the company provides 10% equity. The remaining 50% is from a first mortgage loan from a private-sector lender. Technology Ventures Corporation (TVC) Located in Albuquerque, TVC was formed by Lockheed Martin to promote the commercialization of technology, particularly in relation to Sandia National Laboratories. TVC serves to link technologies and investment sources with start-up companies and existing businesses. In addition, TVC facilitates technical, business and management assistance for its clients.
New Mexico Community Development Loan Fund
Loans are made available to businesses and organizations that have tangible benefits for low-income people. In addition to being available for income-producing ventures, the funds may also be used for housing projects. Rates and terms vary according to specific project requirements and are typically available in amounts from $5,000 to $25,000.
