PDF document

- 1 -

RPD-41238 New Mexico Taxation and Revenue Department
Rev. 07/01/2023
Application For Rural Job Tax Credit
An eligible employer files this form annually to apply for a Rural Job Tax Credit for all qualifying jobs created and includes all
qualifying periods that closed during the calendar year claimed. See instructions for more detail.
Section 1: Identifying Information
1. Name of Eligible Employer

2. FEIN, SSN or ITIN 3. NMBTIN

4. Mailing Address - City, State, Zip Code

5. Physical Address - City, State, Zip Code

6. Name of Contact Person 7. Telephone Number 8. Email Address

Section 2: Calculation of Credit Claimed
Enter the information requested under the Tier One Area or Tier Two Area column that describes the location of all eligible jobs being
claimed.

9. Calendar Year: January 1 through December 31 of _________.Enter Year Above Tier One Area Tier Two Area
10a. 10b.
10. Number of eligible jobs claimed.

11a. 11b.
11. Total Eligible Wages. $16,000 maximum per job.

12a. 12b.
12. Rural Job Tax Credit Claimed.

13. Total Amount of Credit Claimed. (Tier One Area plus Tier Two Area)

Section 3: Required Attachments for a Completed Application
14. Please place a checkmark next to all required attachments that are being submitted.
q A complete RPD-41274 which includes information for each eligible job claimed in Section 2.
q An Email from the Economic Development Department (EDD) indicating that the taxpayer was eligible for the Job Training Incentive
Program (JTIP) during all qualifying periods claimed.
q A dataset of all payroll information claimed for the qualifying periods in Excel format, to reconcile back to the wages claimed. This
should include paycheck date and gross wages per paycheck for each of the employees claimed.
q ACD-31102, Tax Information Authorization Tax Disclosure, will need to be submitted if the contact person for this application is not
the taxpayer, a corporate officer, partner, or fiduciary who has been previously identified as such to the Department or an autho-
rized individual representative with the authority to perform all authorized acts that the taxpayer can perform.

Section 4: Signature
This application must be signed by the taxpayer, a corporate officer, partner, or fiduciary who has been previously identified
as such to the Department or an authorized individual representative with the authority to perform all authorized acts that the
taxpayer can perform 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.
15. Printed Name 16. Title

17. Signature 18. Date

Page 1 of 5

- 2 -

RPD-41238 New Mexico Taxation and Revenue Department
Rev. 07/01/2023
Application for Rural Job Tax Credit Instructions

About This Credit 10. Number of eligible jobs claimed.
The purpose of the Rural Job Tax Credit is to encourage a. Enter total number of tier one eligible jobs from
businesses to start new businesses or expand existing busi- RPD-41247 cell K19
nesses in rural areas of New Mexico. b. Enter total number of tier two eligible jobs from RPD-
41247 cell L19.
The Rural Job Tax Credit Act, Section 7-2E-1.1 NMSA 1978 11. Total Eligible Wages.
provides a credit for eligible rural employers for wages paid a. Enter total number of Tier One Area eligible wages
to eligible employees for each qualifying job the employer from RPD-41247 cell O19. The maximum amount of
creates after July 1, 2000. eligible wages per qualifying period is $16,000.
b. Enter total number of Tier Two Area eligible wages
The amount of the Rural Job Tax Credit is 6.25% of the first from RPD-41247 cell P19. The maximum amount of
$16,000 in wages paid for the qualifying job in a qualifying eligible wages per qualifying period is $16,000.
period. An eligible employee must occupy the qualified job 12. Rural Job Tax Credit Claimed.
for at least 44 weeks. a. Enter total amount of Tier One Area credit claimed
The Rural Job Tax Credit may be claimed for each qualify- from RPD-41247 cell Q19. The maximum amount of
ing job for a maximum of four qualifying periods if the job is credit per qualifying period is $1,000.
performed or based at a location in a tier one area, and two b. Enter total amount of Tier Two Area credit claimed
qualifying periods if the job is performed or based at a loca- from RPD-41247 cell R19. The maximum amount of
tion in a tier two area. credit per qualifying period is $1,000.
13. Enter the total amount of credit claimed. Add 12a and
Application 12b.
An eligible employer may apply to the Taxation and Rev-
enue Department (Department) once per calendar year. Section 3
Apply to the Department by completing form RPD-41238, 14. Place a checkmark next to all required attachments that
Application for Rural Job Tax Credit. are being submitted. See table below for more informa-
tion.
On the application, summarize the wages reported on RPD-
41247, Rural Job Tax Credit Employee Eligibility Detail Re- Required Documents for a Completed Application
port and calculate the amount of credit. RPD-41238 RPD-41238, Application for Rural Job
Tax Credit
FORM INSTRUCTIONS
Section 1 RPD-41247 RPD-41247, Rural Job Tax Credit Em-
1. Enter name of eligible employer. If eligible employer is ployee Eligibility Detail Report
an individual, enter first name, middle initial, and last JTIP Eligibility Email from the Economic Development
name. Department (EDD) indicating that the
2. Enter eligible employer's Federal Employer Identifica- taxpayer was eligible for the Job Train-
tion Number (FEIN), Social Security Number (SSN), or ing Incentive Program (JTIP) during all
Individual Taxpayer Identification Number (ITIN). qualifying periods claimed
3. Enter eligible employer's New Mexico Business Tax Payroll A dataset of all payroll information
Identification Number (NMBTIN). claimed for the qualifying periods in Ex-
4. Enter eligible employer's mailing address including city, cel format, to reconcile back to the wages
state and zip code. claimed. This should include paycheck
5. Enter eligible employer's physical address including date and gross wages per paycheck for
city, state and zip code. each of the employees claimed.
6. Enter contact person's name.
7. Enter contact person's telephone number. ACD-31102 ACD-31102, Tax Information Authori-
8. Enter contact person's email address. zation Tax Disclosure, will need to be
submitted if the contact person for this
Section 2 application is not the taxpayer, a corpo-
Cells K19, L19, O19, P19, and R19 are formulated cells that rate officer, partner, or fiduciary who has
total the numbers for their respective columns. The formula been previously identified as such to the
goes to line 200, if additional lines are used, the formula Department or an authorized individual
should be extended. representative with the authority to per-
9. Enter the calendar year for which credit is being claimed. form all authorized acts that the taxpay-
All qualifying periods claimed must end in the calendar er can perform.
year claimed. Additional documentation may be requested if needed.

Page 2 of 5

- 3 -

RPD-41238                     New Mexico Taxation and Revenue Department
Rev. 07/01/2023
                     Application for Rural Job Tax Credit Instructions

Section 4                                                         against  their  corporate  or  personal  income  tax  liabilities. 
Before submission, this application must be signed by a           Use form RPD-41365,  Notice of Transfer of Rural Job Tax 
corporate officer, partner, or fiduciary who has been previ-      Credit,  to  report  to  the  Department  a  distribution  of  ap-
ously identified as such to the Department or an authorized       proved rural job tax credit to the owners, members or part-
individual representative with the authority to perform all       ners of a PTE.
authorized acts that the taxpayer can perform on behalf of 
the taxpayer. By signing this application you are certifying      Transfer Of Credit
that this application is true, correct, and complete.             This  credit  may  be  sold,  exchanged,  or  otherwise  trans-
                                                                  ferred. The parties to such a transaction shall notify the De-
15.  Enter the printed name of signer                             partment within ten days of the transaction. Use form RPD-
16. Enter the title of signer                                     41365, Notice of Transfer of Rural Job Tax Credit, to report 
17.  Enter signature                                              the transfer or distribution of approved rural job tax credits. 
18. Enter the date application is signed. Use the date for-
mat mm/dd/ccyy                                                    Definitions

Form Submission                                                   Eligible Employee -  means any individual other than an 
Submit the completed RPD-41238, RPD-41247, and all re-            individual who:
quired documents listed in the table above using Taxpayer         • Is a dependent of the employer;
Access Point (TAP),  https://tap.state.nm.us, via email, or       • If the employer is an estate or trust, is a grantor, ben-
mail.     NOTE: You must have an account to apply for the           eficiary or fiduciary of the estate or trust or is a depen-
credit using TAP.                                                   dent of a grantor, beneficiary or fiduciary of the estate 
                                                                    or trust;
Forms  and  Publications  can  be  located  on  our  website:     • If the employer is a corporation, is a dependent of an in-
https://www.tax.newmexico.gov/forms-publications/.                  dividual who owns, directly or indirectly, more than fifty 
                                                                    percent in value of the outstanding stock of the corpora-
Email: TRD-BusinessCredit@state.nm.us                               tion;
                                                                  • If the employer is an entity other than a corporation, es-
Mail: Taxation and Revenue Department                               tate or trust, is a dependent of an individual who owns, 
               Attn: ACD Business Credit                            directly or indirectly, more than fifty percent of the capi-
               P.O. Box 8575                                        tal and profits interests in the entity; or
               Albuquerque, New Mexico 87198-8575                 • Is working or has worked as an employee or as an inde-
                                                                    pendent contractor for an entity that, directly or indirect-
Processing Time                                                     ly, owns stock in a corporation of the eligible employer 
The Department will make a determination within 120 days            or other interest of the eligible employer that represents 
of the date on which the completed application is received.         fifty percent or more of the total voting power of that 
For status of the application please contact the Business           entity or has a value equal to fifty percent or more of the 
Credit  Unit  by  email  or  by  phone  505-795-1735.  If  ap-      capital and profits interests in the entity.
proved, the applicant will be issued a document granting          Eligible  Employer - means  an  employer  who  is  eligible 
the tax credit.                                                   for in-plant training assistance pursuant to Section 21-19-7 
                                                                  NMSA 1978. To learn more, visit the New Mexico Economic 
To Claim the Credit                                               Development  Department's  website: https://edd.newmexi-
The holder of the tax credit document may claim all or a          co.gov/ or call (505) 827-0300.
portion of the rural job tax credit granted by the document 
against  the  holder's  modified  combined  tax  liability,  per- New Job -  means a job that is occupied by an employee 
sonal income tax liability or corporate income tax liability.     who has not been employed in New Mexico by the eligible 
Any balance of rural job tax credit granted by the document       employer in the three years prior to the date of hire;
may be carried forward for up to three years from the date 
of issuance of the tax credit document.  No amount of rural       Qualifying Job -  means a new job that was created after 
job tax credit may be applied against a gross receipts tax        July 1, 2000 and that was not created due to a change in 
or compensating tax imposed by a municipality or county.          organizational structure established by the employer that is 
When claiming the Rural Job Tax Credit RPD-41243,Rural            occupied by an eligible employee for at least 44 weeks of a 
Job Tax Credit Claim Form must be submitted with the re-          qualifying period.
turn. 
                                                                  Per Section 7-2E-1.1(J) NMSA 1978 a qualifying job shall 
If a PTE is a holder of the credit, the PTE may pass the          not be eligible for a rural job tax credit  if:
credit to its owners so that the owners may claim the credit      • The job is created due to a business merger, acquisi-

                                                      Page 3 of 5

- 4 -

RPD-41238                  New Mexico Taxation and Revenue Department
Rev. 07/01/2023
                    Application for Rural Job Tax Credit Instructions

  tion or other change in organization;                          Rural Area -means any part of the state other than:
• The  eligible  employee  was  terminated  from  employ-        • An H class county;
  ment in New Mexico by another employer involved in             • The state fairgrounds;
  the merger, acquisition or other change in organization;       • An  incorporated  municipality  within  a  metropolitan 
  and                                                              statistical area if the municipality's population is thirty 
• The job is performed by:                                         thousand or more according to the most recent federal 
  •       The person who performed the job or its functional       decennial census; and
          equivalent prior to the business merger, acquisition   • Any area within ten miles of the exterior boundaries of a 
          or other change in organization; or                      municipality described above. 
  •       A person replacing the person who performed the 
          job or its functional equivalent prior to the business Tier One Area - means:
          merger, acquisition or other change in organization    • Any municipality within the rural area if the municipal-
                                                                   ity's population according to the most recent federal de-
Per Section 7-2E-1.1(L) NMSA 1978 a job shall not be eli-          cennial census is fifteen thousand or less; or 
gible for a rural job tax credit if the job is created due to    • Any part of the rural area that is not within the exterior 
an eligible employer entering into a contract or becoming a        boundaries of a municipality. 
subcontractor to a contract with a governmental entity that 
replaces one or more entities performing functionally equiv-     Tier Two Area  - means  any  municipality  within  the  rural 
alent services for the governmental entity in New Mexico         area if the municipality's population according to the most 
unless the job is a qualifying job that was not being per-       recent federal decennial census is more than fifteen thou-
formed by an employee of the replaced entity.                    sand.

Qualifying Period - means the period of 12 months begin-         Wages - means all compensation paid by an eligible em-
ning on the day an eligible employee begins working in a         ployer to an eligible employee through the employer's pay-
qualifying job or the period of 12 months beginning on the       roll system, including those wages the employee elects to 
anniversary of the day an eligible employee began working        defer  or  redirect,  such  as  the  employee's  contribution  to 
in a qualified job.                                              401(k) or cafeteria plan programs, but not including benefits 
                                                                 or the employer's share of payroll taxes.

                                              Page 4 of 5

- 5 -

RPD-41238 New Mexico Taxation and Revenue Department
Rev. 07/01/2023
RPD-41247, Rural Job Tax Credit Employee Eligibility Detail Report
Instructions

RPD-41247, Rural Job Tax Credit Employee Eligibility De- number with asterisks.
tail Report, must accompany the RPD-41238, Application Column E. Enter the position title associated with the qual-
for Rural Job Tax Credit, to the Department. Complete all ifying job.
information requested on the spreadsheet and attach the Column F. Enter the position number associated with the
spreadsheet to the application along with the other required qualifying job. You can choose any numeric
documents. characters, which must remain the same for
purposes of reporting this rural job. The num-
SPREADSHEET INSTRUCTIONS ber must be unique to the position and sepa-
Rows 5 through 14 rate from the employee occupying the position.
Make sure the information in these rows matches the infor- Column G. Enter the date the qualifying job was created.
mation for the eligible employer on RPD-41238, Application Use the date format mm/dd/ccyy.
for Rural Job Tax Credit. Column H. Enter the beginning date of the qualifying pe-
riod claimed on this application. Use the date
Row 5. Enter name of eligible employer. If eligible em- format mm/dd/ccyy
ployer is an individual, enter first name, middle Column I. Enter the ending date of the qualifying period
initial, and last name. claimed on this application. Use the date format
Row 6. Enter eligible employer's Federal Employer Iden- mm/dd/ccyy.
tification Number (FEIN), Social Security Number Column J. Enter the qualifying period number being
(SSN), or Individual Taxpayer Identification Num- claimed for this position. Enter 1, 2, 3, 4, which
ber (ITIN). corresponds to the qualifying period being
Row 7. Enter eligible employer's New Mexico Business claimed.
Tax Identification Number (NMBTIN). Column K. Enter a “1” in this column if the claimed position
Row 8. Enter the date from the signature section of the is in a tier one area or
RPD-41238. Use the date format mm/dd/ccyy Column L. Enter a “1” in this column if the claimed position
Row 12. Check this box if the applicant eligible employer is in a tier two area.
is eligible to receive development training pro- Column M. Enter the number of weeks the eligible em-
gram assistance pursuant to Section 21-19-7 ployee occupied the qualifying job during the
NMSA 1978 known as the Job Training Incentive qualifying period claimed.
Program (JTIP) Column N. Enter the total gross wages paid during the
Row 13. Check this box if the eligible employer has not qualifying period. Do not include benefits paid
ceased any of its business operations in New by the eligible employer or the eligible employ-
Mexico. er's share of payroll taxes.
Row 14. Check this box if the eligible employer was not in- Column O. Enter the lesser of gross wages listed in col-
volved in a merger or acquisition during the time umn N or $16,000 if the qualifying job is located
the of qualifying periods claimed in a tier one area or
Column P. Enter the lesser of gross wages listed in col-
Columns A through U umn N or $16,000 if the qualifying job is located
Columns A through U rows 20 and below are completed for in a tier two area.
each eligible employee and qualifying job claimed. If more Column Q. Multiply column O by 6.25% or .0625 and enter
than one qualifying employee occupied the qualifying job amount not to exceed $1000 if qualifying job is
during the calendar year this application is for, complete a located in a tier one area.
separate row for each eligible employee. Column R. Multiply column P by 6.25% or .0625 and enter
amount not to exceed $1000 into column R if
DO NOT ENTER DATA IN ROW 19. Cells K19, L19, O19, the position is located in a tier two area.
P19, and R19 are formulated cells that total the numbers Column S. Enter the total number of all employees em-
for their respective columns. The formula goes to line 200, ployed by the employer at the job location on
if additional lines are used, the formula should be extended. the day prior to the qualifying period start date.
These totals will be used to complete the RPD-41238. Column T. Enter the total number of all employees em-
ployed by the employer at the job location on
Column A. Enter eligible employee's last name. the last day of the qualifying period.
Column B. Enter eligible employee's first name. Column U. Enter the physical address where the qualifying
Column C. Enter eligible employee's middle initial. rural job is located.
Column D. Enter eligible employee's Social Security Num-
ber or Individual Taxpayer Identification Num-
ber. If providing only the last 4 digits, prefill the

Page 5 of 5

PDF file checksum: 4034874978

(Plugin #1/9.12/13.0)