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RPD-41385 New Mexico Taxation and Revenue Department
Rev. 07/01/2023
Application For Technology Jobs and
Research and Development Tax Credit

A taxpayer conducting qualified research at a qualified facility with qualified expenditures is eligible to claim the basic technology jobs and
research and development tax credit. The taxpayer is also entitled to an additional credit if annual payroll expenses increase by $75,000
over base payroll for every $1,000,000 in qualified expenditures claimed by the taxpayer in the calendar year claimed on the application.
See the instructions for important definitions and required attachments.
Section I:
Name of Business FEIN/SSN NMBTIN

Physical Address of Qualified Facility City State ZIP Code

Mailing Address City State ZIP Code

Name of Contact Person Phone Number Email Address

Section II:
Calendar year January 1 through December 31, 20_____
1. Qualified Research (please define the type of research)

q 2. Mark this box if the expenditures were incurred at a qualified facility located within a rural area.
3. Qualified Expenditures
$

4. Basic Technology Jobs and Research and Development Tax Credit. 5% of Qualified
Expenditures. $

5. Rural Area Basic Technology Jobs and Research and Development Tax Credit. 5% of
Qualified Expenditures. $

6. Additional Technology Jobs and Research and Development Tax Credit. 5% of Qualified
Expenditures $

7. Rural Area Additional Technology Jobs and Research and Development Tax Credit.
5% of Qualified Expenditures. $

q 8. Mark this box if the three statements below are true indicating if you are a qualified research and
development small business
• No more than 50 employees were employed in the tax year for which the additional credit is claimed, for which
the employer was liable for unemployment insurance coverage.
• Total qualified expenditures made in the tax year for which an additional credit is claimed were no more than
$5,000,000.
• No more than 50% of the employer's voting securities or other equity interest with the right to designate or elect
the board of directors or other governing body of the business owned directly or indirectly by another business.
9. Total Technology Jobs and Research and Development Tax Credit. Add lines 4,5, 6, and 7, $
enter total here.

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RPD-41385 New Mexico Taxation and Revenue Department
Rev. 07/01/2023
Application For Technology Jobs and
Research and Development Tax Credit

Section III:
1. Are the expenditures contained in this application connected to qualified research at a qualified q Yes q No
New Mexico facility?

2. Is the property contained in this application owned by a municipality or county in connection with q Yes q No
an industrial revenue bond project?

3. Is the property contained in this application property for which the Investment Tax Credit has q Yes q No
been claimed?

4. Is the property contained in this application owned by this company or an affiliate prior to July 4, q Yes q No
2000?

5. Have the expenditures claimed in this application been reimbursed by a person who is not an q Yes q No
affiliate?

6. Was the qualified research performed under contracts for a person who is not an affiliate? q Yes q No

7. Does the taxpayer retain the rights, patents or license to the qualified research claimed in this q Yes q No
application?

8. Does this application include any allocated expenses for depreciation? q Yes q No

9. Is the methodology used for the allocation of expenditures contained in this application the same q Yes q No
as used in your other business activities?

10. Is the qualified research intended to be useful in the development of a new or improved business q Yes q No
component of the taxpayer claiming the credit?

Section IV: This application must be signed by a corporate officer, partner, or fiduciary who has been previously identi-
fied as such to the Department or an authorized individual representative with the authority to receive Federal and State
confidential information on behalf of the taxpayer.
I declare that I have examined this claim, and to the best of my knowledge and belief it is true, correct, and complete.
Printed Name Title

Signature Date

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RPD-41385 New Mexico Taxation and Revenue Department
Rev. 07/01/2023
Application for Technology Jobs and
Research and Development Tax Credit Instructions
Page 1 of 4

Applying for Basic Credit Using the Technology Jobs and Research and Devel-
A taxpayer may apply for approval of a basic credit within opment Tax Credit (Section 7-9F-9 and Section 7-9F-9.1
one year following the end of the reporting period in which NMSA 1978)
the qualified expenditure was made.
The Basic Tax Credit may be applied against the taxpayer’s
Applying for Additional Credit compensating tax, withholding tax or gross receipts tax (ex-
A taxpayer may apply for approval of the additional credit cluding local option gross receipts tax), due to the state of
within one year following the end of the tax year in which the New Mexico. No taxpayer may claim an amount of approved
qualified expenditure was made. basic credit for any reporting period that exceeds the sum of
the taxpayer’s compensating tax, withholding tax and gross
LINE INSTRUCTIONS receipts tax (excluding local option gross receipts tax) due
for that reporting period.
Line 1 - Describe the qualified research performed.
Approved basic credit may be carried forward for a period of
Line 2. Mark this box if the expenditures were incurred for a up to three years from the date of the original claim.
qualified facility located within a rural area*. The amount of
both the basic and additional technology jobs and research The Additional Tax Credit may be applied against the tax-
and development credit are doubled if the qualified expen- payer’s personal or corporate income tax. Except for qualified
ditures were incurred for a qualified facility in a rural area. research and development small businesses, no taxpayer
may claim an amount of additional credit for any reporting
Line 3 - Enter the total amount of qualified expenditures period that exceeds the amount of the taxpayer’s personal
claimed. Attach a detailed list of expenditures and wages or corporate income tax due for that reporting period.
claimed with descriptions.
Approved additional tax credit may be carried forward for a
If an allocation of expenditures are claimed, the cost account- period of up to three years from the date of the original claim
ing methodology used for the allocation of the expenditure if the credit was not claimed against tax due or refunded to
shall be the same cost accounting methodology used by the taxpayer.
the taxpayer in its other business activities. Important: An
explanation of methodology needs to be provided. A pass-through entity (PTE) approved for additional credit may
pass the additional credit to its owners, partners or members
Line 4 - Multiply the total amount of qualified expenditures using Form RPD-41368, Notice of Distribution of Technology
by 5%. This is the amount of your basic credit. Jobs and Research and Development Tax Credit.

Line 5 - Multiply the total amount of qualified expenditures Refund for Certain Small Businesses
by 5% if the qualified facility is in a rural area. This is the Qualified research and development small businesses may
amount of your basic credit in a rural area. claim a refund of all or a portion of approved additional credit.
If the total qualified expenditures for the tax year for which
Line 6 - Multiply the total amount of qualified expenditures the claim is made is:
by 5%. This is the amount of your additional credit. • less than $3,000,000, the excess additional credit shall
be refunded to the taxpayer;
Line 7 - Multiply the total amount of qualified expenditures by • greater than or equal to $3,000,000 and less than
5% if the qualified facility is in a rural area. This is the amount $4,000,000, two-thirds of the excess additional credit
of your additional credit in a rural area. shall be refunded, and
• greater than or equal to $4,000,000 and less than or
Line 8 - Mark this box if you are a qualified research and equal to $5,000,000, one-third of the excess additional
development small business and meet the requirements listed. credit shall be refunded.

Qualified research and development small businesses may be Carryforward of Additional Credit
entitled to a refund of all or a portion of approved additional Any amount of approved additional credit not claimed against
technology jobs and research and development tax credit, the taxpayers income tax or corporate income tax due for a tax
as described in the next section. year or refunded to the taxpayer may be carried forward for a
period of up to three years from the date of the original claim.

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RPD-41385                      New Mexico Taxation and Revenue Department
Rev. 07/01/2023
                               Application for Technology Jobs and 
                           Research and Development Tax Credit Instructions
                                                                                                          Page 2 of 4

Recapture                                                        increase from the preceding tax year in the consumer price 
If the taxpayer or a successor in business of the taxpayer       index for the United States for all items as published by the 
ceases operations in New Mexico for 180 consecutive days         United States Department of Labor in the tax year for which 
within a two-year period, any approved unclaimed credit shall    the additional credit is claimed. In a tax year during which a 
be extinguished. Within 30 days after the 180 days, the tax-     taxpayer has been part of a business merger or acquisition 
payer shall pay the tax against which an approved technology     or other change in business organization, the taxpayer's base 
jobs and research and development tax credit was taken.          payroll expense shall include the payroll expense of all entities 
                                                                 included in the reorganization of all positions that are included 
Taxpayer Reporting Requirement                                   in the business entity resulting from the reorganization.
Effective January 1, 2015, a taxpayer claiming this credit 
shall file reports with the Taxation and Revenue Department.     Local option gross receipts tax- means a tax authorized to 
The reports shall be submitted on or before June 30 of the       be imposed by a county or municipality upon the taxpayer's 
year following a calendar year in which the taxpayer claims      gross receipts, and required to be collected by the Depart-
a basic or additional credit and by June 30 of each of the       ment at the same time and in the same manner as the gross 
two succeeding years. The reports shall contain information      receipts tax.
describing the taxpayer's business operations in New Mexico 
that is sufficient for the Department to enforce the recapture   Qualified Expenditures– means an expenditure or an allo-
provision. If a taxpayer fails to submit a required report, the  cated portion of an expenditure by a taxpayer in connection with 
amount of any basic or additional credit claimed for that year   qualified research at a qualified facility, including expenditures 
shall be subject to the recapture provision.                     for depletable land and rent paid or incurred for land, improve-
                                                                 ments, the allowable amount paid or incurred to operate or 
Transition of the Research and Development Small Busi-           maintain a facility, buildings, equipment, computer software, 
ness Tax Credit                                                  computer software upgrades, consultants and contractors 
Effective January 1, 2015, the Technology Jobs Tax Credit        performing work in New Mexico, payroll, technical books and 
Act is revised to add an incentive for research and develop-     manuals and test materials, but not including any expendi-
ment small businesses, and as of January 1, 2016, will be        ture on property that is owned by a municipality or county in 
known as the Technology Jobs and Research and Develop-           connection with an industrial revenue bond project, property 
ment Tax Credit Act. The new legislation allows research and     for which the taxpayer has received any credit pursuant to 
development small businesses to obtain the new "technology       the Investment Credit Act, property that was owned by the 
jobs and research and development tax credit" for qualified      taxpayer or an affiliate before July 3, 2000 or research and 
expenditures made after January 1, 2015. For report periods      development expenditures reimbursed by a person who is not 
between January 1, 2015, and June 30, 2015, a taxpayer           an affiliate of the taxpayer.  If a "qualified expenditure" is an 
who becomes eligible for a "research and development small       allocation of an expenditure, the cost accounting methodol-
business tax credit" can choose to either claim the "research    ogy used for the allocation of the expenditure shall be the 
and development small business tax credit" or the "technology    same cost accounting methodology used by the taxpayer in 
jobs and research and development tax credit".                   its other business activities.

By claiming the "research and development small business         Facility- means a factory, mill, plant, refinery, warehouse, 
tax credit" for a reporting period prior to July 1, 2015, the    dairy, feedlot, building or complex of buildings located within 
taxpayer is ineligible to claim the "technology jobs and re-     the state, including the land on which it is located and all 
search and development tax credit" for the same reporting        machinery, equipment and other real and tangible personal 
period. Likewise, a taxpayer who claims a "technology jobs       property located at or within it and used in connection with 
and research and development tax credit" is ineligible to claim  its operation
the "research and development small business tax credit" for 
the same reporting period.                                       Qualified Research– means research:
                                                                 (1.) that is undertaken for the purpose of discovering infor-
IMPORTANT DEFINITIONS                                            mation:
                                                                 (a.) that is technological in nature; and
Annual payroll expense- means the wages paid or payable          (b.) the application of which is intended to be useful in 
to employees in the state by the taxpayer in the tax year for            the development of a new or improved business 
which the taxpayer applies for an additional credit.                     component of the taxpayer; and
                                                                 (2.) substantially all of the activities of which constitute ele-
Base payroll expense- means the wages paid or payable            ments of a process of experimentation related to a new 
by the taxpayer in the tax year prior to the tax year for which  or improved function, performance, reliability or quality, 
the taxpayer applies for an additional credit, adjusted for any  but not related to style, taste or cosmetic or seasonal

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RPD-41385                       New Mexico Taxation and Revenue Department
Rev. 07/01/2023
                                Application for Technology Jobs and 
                       Research and Development Tax Credit Instructions
                                                                                                           Page 3 of 4

  design factors.                                              tion of thirty thousand or more according to the most recent 
                                                               federal decennial census and any area within three miles 
Qualified  research  and  development  small  business-        of the external boundaries of the incorporated municipality 
means a taxpayer that:                                         defined above.
• employed no more than fifty employees as determined 
  by the number of employees for which the taxpayer was        Wages- means remuneration for services performed by an 
  liable for unemployment insurance coverage in the taxable    employee in New Mexico for an employer. 
  year for which an additional credit is claimed;
• had  total  qualified  expenditures  of  no  more  than 
  $5,000,000 in the tax year for which an additional credit 
  is claimed, and 
• did not have more than fifty percent of its voting securi-
  ties or other equity interest with the right to designate or 
  elect the board of directors or other governing body of the 
  business owned directly or indirectly by another business.

Rural Area–  means any area of the state other than the 
state fairgrounds, an incorporated municipality with a popula-

                                             Required Documentation
Application    RPD-41385 Application for Technology Jobs and Research and Development Tax Credit
R&D Project    •  For each project, submit a TRD-31121, Research and Development Project Statement (Excel sheet).
Statement      •  If expenditures claimed are tied to a project number, include project numbers with the descriptions.
(TRD-31121)
Detailed List  •  An itemized list of expenditures, in Excel format. This should include the date the item was purchased, 
of Qualified      a description of the item (not just a category), and amount claimed.
Expenditures   •  In excel format, an itemized list for each employee claimed to include Box 1, W2 wages or total payroll 
                  wages for the year claimed, R&D wages claimed, and percentage of time spent working on the claimed 
                  projects for each employee. 
Allocation     If allocated percentage of expenditures are being claimed, a written statement explaining the cost ac-
methodology    counting methodology used.
Additional         Box-1,  W-2 wages in Excel format for all employees at the qualified facility for the year claimed on 
Credits             application.
                   Box-1,  W-2 wages in Excel format for all employees at the qualified facility in the year prior to the 
                    year being claimed.

TIA            If the contact person for the credit is not the taxpayer or officer of the taxpayer, submit ACD–31102, Tax 
               Information Authorization Tax Disclosure, allowing the Department to discuss this credit application.
                         Important: Additional documentation may be requested.

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RPD-41385 New Mexico Taxation and Revenue Department
Rev. 07/01/2023
Application for Technology Jobs and
Research and Development Tax Credit

TRD-31121, Research and Development Project Statement
Instructions
Page 4 of 4

The TRD-31121, Research and Development Project State- Column G: Describe the process of experimentation con-
ment, must accompany your submission of RPD-41385, ducted during the year claimed. If project runs for multiple
Application for Technology Jobs and Research and Develop- years, describe what was done in current year that was dif-
ment Tax Credit. ferent from the prior year.

Complete all information requested on the form and attach IMPORTANT: Submit all required documentation along with
the form to the application along with the other required RPD-41385, Application for Technology Jobs and Research
documents. and Development Tax Credit. The Department may require
additional documentation to verify eligibility.
Note: Make sure the information in these rows matches the
information for the eligible employer on RPD-41385, Appli- The TRD-31121 and RPD-41385 can be downloaded on
cation for Technology Jobs and Research and Development the Department's website, visit https://www.tax.newmexico.
Tax Credit. gov/forms-publications/ then select Technology Jobs and
Research and Development from the Tax Credits (TC) folder.
ROW 7 THROUGH 10
Either apply online from our web site at https://tap.state.
Row 7: Enter the name of the eligible employer. nm.us or email this application along with TRD-31121, and
all required documentation to TRD-BusinessCredit@state.
Row 8: Enter employer's New Mexico Business Tax identi- nm.us or mail to:
fication number (NMBTIN).
Taxation and Revenue Department
Row 9: Enter the date from the signature section of Form Attn: ACD Business Credits,
RPD-41385, Application for Technology Jobs and Research P. O. Box 8485,
and Development Tax Credit. Use the date format MM/DD/ Albuquerque, NM 87198-8485
CCYY.
The Department will make a determination within 120 days
Row 10: Enter the Business Location Address. of the date on which the completed application is received.
You may call (505)795-1735 or send an email to check the
COLUMN A THROUGH G status. If approved, the applicant will be issued a document
granting the tax credit.
Column A: Enter the name of each project being claimed;
add more rows if needed.

Column B: Describe the new business component or if an
improvement is being made, describe what was being im-
proved during the year claimed.

Column C: Indicate year the project start and end date. If
more than one year, indicate the start date and the projected
end date

Column D: Describe how the project come about, what initi-
ated the project.

Column E: Describe the goal or outcome of the project. If
an improvement was made, describe what it did before and
what the goal is for the improvement.

Column F: Describe the technical uncertainties encountered
during the project

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