High Wage Jobs Tax Credit

The HWJTC is a refundable tax credit designed to incentivize quality job creation, with differing thresholds for jobs in urban versus rural communities. This credit applies to the state portion of the gross receipts, compensating, and withholding taxes, with any excess credit being refunded as cash to the taxpayer.

How Much Money Could Be Available?

The benefit is equal to 8.5% of the wages paid for each new qualified job created and is capped at $12,750 per job, per year. Employees can generate the credit for up to four years.

What Constitutes a Quality Job?
  • $40,000 or more annual salary for employees in rural communities
  • $60,000 or more annual salary for employees in urban communities
  • Employment of at least 44 weeks
  • Employee must be a New Mexico resident
  • Employee not related to anyone with more than a 50% owner stake of the company
How Does a Company Qualify?

Companies with increasing head counts from year to year that also qualify for the Job Training Incentive Program, which is detailed in a section below.

This credit focuses on manufacturing, non-retail companies and excludes industries such as construction and extraction.

How Do You Claim the HWJTC?

Submit an application, employee eligibility retail report, and claim form to the New Mexico Taxation and Revenue Department (TRD).

Taxpayers must apply for approval after the close of a qualifying period—12 months after the employee begins working—but not later than 12 months following the end of the calendar year in which the taxpayer’s final qualifying period closes.

Note that tax liability isn’t necessary to take advantage of this credit, since it is refundable.

Stephanie Schardin Clarke, Secretary

New Mexico Taxation and Revenue Department

1100 South St. Francis Drive Santa Fe, NM 87504

Phone: (505) 827-0700


Category: State Incentives, General

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