RPD - 41385              STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
Rev. 10/16/2015
                             APPLICATION FOR TECHNOLOGY JOBS AND 
                             RESEARCH AND DEVELOPMENT TAX CREDIT
Mail this form to: Taxation and Revenue Department, ATTN:  Director's Office, P.O. Box 8485, Albuquerque, New Mexico, 87198-8485. If 
you need assistance completing this form contact the call center at 1-866-285-2996.
A taxpayer conducting qualified research at a qualified facility and making 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 a tax year in the same claim. See the 
instructions for important definitions and required attachments. To apply for the technology jobs and research and development tax credit, 
a taxpayer must have qualified expenditures made on or after January 1, 2015.
Name of Business                                                                New Mexico Business Tax Identification Number (NMBTIN)

Street Address                                                                  City, State and ZIP Code

Mailing Address                                                                 City, State and ZIP Code

Name of Contact Person          Telephone Number                                       Email address

For the report period __________ through  __________  (See the instructions)
                         (mm/dd/yyyy)                               (mm/dd/yyyy)

1.  Qualified Research (please define the type of research) _________________________________________________

 ______________________________________________________________________________________________

 ______________________________________________________________________________________________

2.  Qualified Facility (Indicate type of facility and physical location) ____________________________________________

 ______________________________________________________________________________________________

 ______________________________________________________________________________________________

 2a.  Mark this box if the expenditures were incurred for a qualified facility located within a 
  rural area ........................................................................................................................  
3.  Qualified Expenditures (Attach expense summary and description of qualified expenditures.)  ___________________

4.  Basic Technology Jobs and Research and Development Tax Credit .....................................                                ___________________
 5% of Qualified Expenditures or 10% if in a rural area
5.  Additional Technology Jobs and Research and Development Tax Credit ..............................                                  ___________________
 5% of Qualified Expenditures or 10% if in a rural area 
 (Attach a payroll expense summary that reflects both annual and base payroll expenses.)
 5a.   Mark this box if the three statements below are true indicating if you are a qualified
          research and development small business .....................................................................
  1.        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. 
  2.        Total qualified expenditures made in the tax year for which an additional credit is claimed were no more 
            than $5,000,000. 
  3.        No more than fifty percent of the employer's voting securities or other equity interest with the right to des-
            ignate or elect the board of directors or other governing body of the business owned directly or indirectly 
            by another business.
6.  Total Technology Jobs and Research and Development Tax Credit ......................................                               ___________________
 Add lines 4 & 5
                I declare I have examined this application, including accompanying schedules, attachments 
                and statements, and to the best of my knowledge and belief it is true, correct and complete.

                ____________________________________________                       _________________________
                Taxpayer Authorized Signature                                      Date

RPD - 41385       STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
Rev. 10/16/2015
                  APPLICATION FOR TECHNOLOGY JOBS AND 
                  RESEARCH AND DEVELOPMENT TAX CREDIT
                                                                                                                 Page 1 of 3

Applying for Basic Credit                                          http://www.realfile.tax.newmexico.gov/RuralAreas_Roswell.jpg 
                                                                   http://www.realfile.tax.newmexico.gov/RuralAreas_SantaFe.jpg 
A taxpayer may apply for approval of a basic credit within 
one year following the end of the reporting period in which        Line 3 - Enter the total qualified expenditures. Attach 
the qualified expenditure was made.                                an expense summary with a description of the quali-
                                                                   fied expenditures.
Applying for Additional Credit
A taxpayer may apply for approval of the additional credit         Qualified Expenditures – means any expenditure or  al-
within one year following the end of the tax year in which         located portion of an expenditure connected to qualified 
the qualified expenditure was made.                                research at a qualified facility. Such expenditures include: 
                                                                   • Depletable land and rent paid or incurred for land
Line 1 - Describe the qualified research performed.                    Improvements
                                                                   • Allowable  amounts  paid  or  incurred  to  operate  or 
Qualified Research – means research that is undertaken 
                                                                     maintain a facility
to discover information that is:
                                                                   • Buildings
• Technological in nature
                                                                   • Equipment
• Intended to be useful in the development of a new or 
                                                                   • Computer software
  improved business component of the taxpayer, and
                                                                   • Computer software upgrades
• Related to a new or improved function, performance, 
                                                                   • Consultants and contractors performing work in New 
  reliability or quality, but not related to style, taste, or 
                                                                     Mexico
  cosmetic or seasonal design factors.
                                                                   • Payroll
Line 2 - Describe the facility and it's physical location.         • Technical books and manuals
                                                                   • Test materials
Qualified Facility  – means a factory, mill, plant, refinery, 
warehouse,  dairy,  feedlot,  building  or  complex  of  build-    Qualified expenditures exclude any expenditure:
ings located in New Mexico at which qualified research is          • On property owned by a municipality or county in con-
conducted. These include the land on which the facility is           nection with an industrial revenue bond project, 
located and all machinery, equipment and other real and            • On property for which the taxpayer has received any 
tangible personal property located at or within the facility         credit under the Investment Credit Act, 
and used in connection with the operation of the facility.         • On property owned by the taxpayer or affiliate before 
Any facility operated by the taxpayer for the United States          July 3, 2000, or 
is excluded.                                                       • On research and development expenditures reimbursed 
                                                                     by a person who is not an affiliate of the taxpayer.  
Line 2a. Mark this box if the expenditures were incurred for 
a qualified facility located within a rural area*. The amount      If an allocation of expenditure is claimed, the cost account-
of both the basic and additional technology jobs and re-           ing methodology used for the allocation of the expenditure 
search and development credit are doubled if the qualified         shall be the same cost accounting methodology used by 
expenditures were incurred for a qualified facility in a rural     the taxpayer in its other business activities.
area. If the facility is located in a rural area, multiply the 
amount of qualified expenditures by 10% in lines 4 and 5.          Line 4 - Multiply the total amount of qualified expenditures 
                                                                   by 5% or by 10% if the qualified facility is in a rural area. 
                                                                   This is the amount of your basic credit.
*Rural Area  –  means any area of the state other than 
the  state  fairgrounds,  an  incorporated  municipality  with     Line 5 - Multiply the total amount of qualified expenditures 
a population of thirty thousand or more according to the           by 5% or by 10% if the qualified facility is in a rural area. 
most recent federal decennial census and any area within           This is the amount of your additional credit.
three miles of the external boundaries of the incoporated 
municipality defined above. Listed below are links to maps         Line 5a - Mark this box if you are a qualified research and 
to help you determine if you are in a rural area.                  development small business. To qualify as a qualified re-
                                                                   search and development small business, you are affirming 
http://www.realfile.tax.newmexico.gov/RuralAreas_State_3and10mi.jpg
http://www.realfile.tax.newmexico.gov/RuralAreas_ABQ_RioRancho.jpg that the following three statements are true. 
http://www.realfile.tax.newmexico.gov/RuralAreas_Alamogordo.jpg
http://www.realfile.tax.newmexico.gov/RuralAreas_Clovis.jpg        1.  No more than 50 employees were employed in the 
http://www.realfile.tax.newmexico.gov/RuralAreas_Farmington.jpg      tax  year  for  which  the  additional  credit  is  claimed, 
http://www.realfile.tax.newmexico.gov/RuralAreas_Hobbs.jpg           for which the employer was liable for unemployment 
http://www.realfile.tax.newmexico.gov/RuralAreas_LasCruces.jpg       insurance coverage. 

RPD - 41385                STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
Rev. 10/16/2015
                                 Application for Technology Jobs and 
                           Research and Development Tax Credit Instructions
                                                                                                                 Page 2 of 3

2.  Total  qualified  expenditures  made  in  the  tax  year  for to $5,000,000, one-third of the excess additional credit 
  which an additional credit is claimed were no more than         shall be refunded.
  $5,000,000. 
                                                                  Carryforward of Additional Credit
3.  No more than fifty percent of the employer's voting securi-   Any amount of approved additional credit not claimed against 
  ties or other equity interest with the right to designate or    the taxpayers income tax or corporate income tax due for a 
  elect the board of directors or other governing body of the     tax year or refunded to the taxpayer may be carried forward 
  business owned directly or indirectly by another business.      for a period of up to three years from the date of the original 
Qualified research and development small businesses may be  claim.   
entitled to a refund of all or a portion of approved additional 
technology jobs and research and development tax credit, as       Recapture
described in the next section.                                    If the taxpayer or a successor in business of the taxpayer 
                                                                  ceases operations in New Mexico for 180 consecutive days 
USING THE TECHNOLOGY JOBS AND RESEARCH AND                        within a two-year period, any approved unclaimed credit shall 
DEVELOPMENT TAX CREDIT                                            be extinguished. Within 30 days after the 180 days, the tax-
The Basic Tax Credit may be applied against the taxpayer’s        payer shall pay the tax against which an approved technology 
compensating tax, withholding tax or gross receipts tax (ex-      jobs and research and development tax credit was taken.
cluding local option gross receipts tax), due to the state of 
                                                                  Taxpayer Reporting Requirement
New Mexico. No taxpayer may claim an amount of approved 
basic credit for any reporting period that exceeds the sum of     Effective  January  1,  2015,  a  taxpayer  claiming  this  credit 
the taxpayer’s compensating tax, withholding tax and gross        shall file reports with the Taxation and Revenue Department. 
receipts tax (excluding local option gross receipts tax) due      The reports shall be submitted on or before June 30 of the 
for that reporting period.                                        year following a calendar year in which the taxpayer claims 
                                                                  a basic or additional credit and by June 30 of each of the 
Approved basic credit may be carried forward for a period of  two succeeding years. The reports shall contain information 
up to three years from the date of the original claim.            describing the taxpayer's business operations in New Mexico 
                                                                  that is sufficient for the Department to enforce the recapture 
The Additional Tax Credit may be applied against the tax-         provision. If a taxpayer fails to submit a required report, the 
payer’s personal or corporate income tax. Except for qualified    amount of any basic or additional credit claimed for that year 
research and development small businesses, no taxpayer            shall be subject to the recapture provision. 
may claim an amount of additional credit for any reporting 
period that exceeds the amount of the taxpayer’s personal or      Transition of the Research and Development Small Busi-
corporate income tax due for that reporting period.               ness Tax Credit
                                                                  Effective January 1, 2015, the Technology Jobs Tax Credit  
Married individuals may each claim only one-half the additional   Act is revised to add an incentive for research and develop-
credit. A pass-through entity (PTE) approved for additional       ment small businesses, and as of January 1, 2016, will be 
credit may pass the additional credit to its owners, partners     known as the Technology Jobs and Research and Develop-
or members using Form RPD-41368, Notice of Distribution of        ment Tax Credit Act. The new legislation allows research and 
Technology Jobs and Research and Development Tax Credit.          development small businesses to obtain the new "technology 
                                                                  jobs and research and development tax credit" for qualified 
Refund for Certain Small Businesses
                                                                  expenditures made after January 1, 2015. For report periods 
Qualified research and development small businesses may  between January 1, 2015, and June 30, 2015, a taxpayer 
claim a refund of all or a portion of approved additional credit.  who becomes eligible for a "research and development small 
If the total qualified expenditures for the tax year for which  business tax credit" can choose to either claim the "research 
the claim is made is:                                             and development small business tax credit" or the "technology 
• less than $3,000,000, the excess additional credit shall        jobs and research and development tax credit". 
  be refunded to the taxpayer;
                                                                  By claiming the "research and development small business 
• greater  than  or  equal  to  $3,000,000  and  less  than  tax credit" for a reporting period prior to July 1, 2015, the tax-
  $4,000,000,  two-thirds  of  the  excess  additional  credit  payer is ineligible to claim the "technology jobs and research 
  shall be refunded, and                                          and development tax credit" for the same reporting period. 
• greater than or equal to $4,000,000 and less than or equal      Likewise, a taxpayer who claims a "technology jobs and re-
                                                                  search and development tax credit" is ineligible to claim the 

RPD - 41385            STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
Rev. 10/16/2015
                       Application for Technology Jobs and 
                       Research and Development Tax Credit Instructions
                                                                                                           Page 3 of 3

"research and development small business tax credit" for the  operated by a taxpayer for the United States or any agency, 
same reporting period.                                             department or instrumentality. 

Important Definitions                                              "Local option gross receipts tax" means a tax authorized to 
                                                                   be imposed by a county or municipality upon the taxpayer's 
"Annual payroll expense" means the wages paid or payable 
                                                                   gross receipts, and required to be collected by the Depart-
to employees in the state by the taxpayer in the tax year for 
                                                                   ment at the same time and in the same manner as the gross 
which the taxpayer applies for an additional credit. 
                                                                   receipts tax.
"Base payroll expense" means the wages paid or payable 
                                                                   "Qualified research and development small business" means 
by the taxpayer in the tax year prior to the tax year for which  
                                                                   a taxpayer that:
the taxpayer applies for an additional credit, adjusted for any 
increase from the preceding tax year in the consumer price  •        employed no more than fifty employees as determined 
index for the United States for all items as published by the        by the number of employees for which the taxpayer was 
United States Department of Labor in the tax year for which          liable for unemployment insurance coverage in the taxable 
the additional credit is claimed. In a tax year during which a       year for which an additional credit is claimed;
taxpayer has been part of a business merger or acquisition         • had total qualified expenditures of no more than $5,000,000 
or other change in business organization, the taxpayer's base        in the tax year for which an additional credit is claimed, and 
payroll expense shall include the payroll expense of all entities 
included in the reorganization of all positions that are included  • did not have more than fifty percent of its voting securi-
in the business entity resulting from the reorganization.            ties or other equity interest with the right to designate or 
                                                                     elect the board of directors or other governing body of the 
"Qualified Facility" means a factory, mill, plant, refinery, ware-   business owned directly or indirectly by another business.
house, dairy, feedlot, building or complex of building located 
within the state, including the land on which it is located and    "Wages" means remuneration for services performed by an 
all machinery, equipment and other real and tangible personal      employee in New Mexico for an employer. 
property located at or within it and used in connection with 
its operation. The facility must be located in New Mexico at 
which qualified research is conducted other than a facility