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RPD - 41238 STATE OF NEW MEXICO
Rev. 10/23/2014
TAXATION AND REVENUE DEPARTMENT

APPLICATION FOR RURAL JOB TAX CREDIT
A Rural Job Tax Credit is offered to employers who are eligible for Job Training Incentive Program assistance. It is based on the wages
earned in qualifying jobs occupied by an eligible employee for at least forty-eight (48) weeks during a qualifying period.

Mail to: New Mexico Taxation and Revenue Department (TRD), ATTN: Director's Office, P.O. Box 8485, Albuquerque, New Mexico 87198-
8485. For the status of the credit application call (505) 383-0184 or (505) 383-0171.

PLEASE PRINT OR TYPE
Name of business New Mexico CRS identification number

Physical address City, state and ZIP code

Mailing address City, state and ZIP code

Name of contact person Telephone number Email address

Enter the information requested under the tier area column that describes the location of the job.
(Tier areas are defined on the back of this form.)
TIER ONE AREA TIER TWO AREA

1. Number of eligible jobs claimed* ______________ ______________
A certificate is required for each eligible job

2. Total Eligible Wages: ($16,000 maximum per job certificate)* ______________ ______________
Pursuant to Paragraphs (1), (2), and (3), 26 U.S.C. Section 51(c).

3. Rural Job Tax Credit: ______________ ______________
Multiply line 2 by .0625

* Attach Form RPD-41247, Certificate of Eligibility for the Rural Job Tax Credit, for each job for which credit is claimed in
an eligible period.

_________________________________________ _______________________________
Taxpayer's Signature Title

_________________________________________ _______________________________
Telephone Number Date

NEW MEXICO RURAL JOB TAX CREDIT
Rural Job Tax Credit - Authorized by the New Mexico Taxation and Revenue Department

Approval by the New Mexico Taxation and Revenue Department Claim No. __________________

Department authorization: ____________________________________ Title: __________________________________

Date issued: ________________________________________ Credit sequence number: ______________________

Total amount approved: ________________________________

This credit may be sold, exchanged, or otherwise transferred. Use Form RPD-41365, Notice of Transfer of Rural Job Tax Credit, to
report to TRD a transfer or distribution of approved rural job tax credits. The parties to such a transaction shall notify TRD of the sale,
exchange or transfer within ten days of such transaction. The holder of this credit may apply all or a portion of the rural job tax credit to
gross receipts tax (excluding local option taxes imposed by a municipality or county), compensating or withholding tax, less the amounts
of any other credit applied. The holder also may apply the credit to personal or corporate income tax liability. The credit may be carried
forward for a period of three years from the date issued as referenced above.

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RPD - 41238          STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
Rev. 10/23/2014
                     Application for Rural Job Tax Credit Instructions
                                                                                                               Page 1 of 2
ABOUT THIS CREDIT                                                 3. The job is performed by:
The purpose of the rural job tax credit is to encourage              a.    The person who performed the job or its functional 
businesses to start new businesses in rural areas of New             equivalent prior to the business merger, acquisi-
Mexico.                                                              tion or other change in organization; or
                                                                     b.   A person replacing the person who performed 
The Rural Job Tax Credit Act, Section 7-2E-1.1 NMSA 1978             the job or its functional equivalent prior to the 
provides a credit for eligible rural employers for wages paid        business merger, acquisition or other change in 
to an eligible employee for each qualifying job the employer         organization.
creates after July 1, 2000. The amount of the rural job tax 
credit is 6.25% of the first $16,000 in wages paid for the        If, however, a qualifying job that was created by another 
qualifying job in a qualifying period. An eligible employee       employer and for which the rural job tax credit claim was 
must occupy the qualified job for at least 48 weeks.              received by the Taxation and Revenue Department prior 
                                                                  to July 1, 2013, and is under review or has been approved 
The Rural Job Tax Credit may be claimed for each qualify-         shall remain eligible for the rural job tax credit for the bal-
ing job for a maximum of four qualifying periods if the job       ance of the qualifying periods for which the job qualifies 
is performed or based at a location in a tier one area, and       by the new employer that results from a business merger, 
two qualifying periods if the job is performed or based at        acquisition or other change in the organization.
a location in a tier two area. 
                                                                  A job shall not be eligible for a rural job tax credit pursuant to 
Definition of Tier Areas and Rural Area                           this section if the job is created due to an eligible employer 
A rural area excludes Albuquerque, Corrales, Farmington,          entering into a contract or becoming a subcontractor to a 
Las Cruces, Los Alamos County, Los Ranchos, Rio Ran-              contract with a governmental entity that replaces one or 
cho, Santa Fe, or Tijeras, or any area within a ten-mile          more entities performing functionally equivalent services 
zone around any of these municipalities. A tier two area is       for the governmental entity in New Mexico unless the job 
within the cities of Alamogordo, Carlsbad, Clovis, Gallup,        is a qualifying job that was not being performed by an 
Hobbs, and Roswell. A tier one area is anywhere within            employee of the replaced entity.
New Mexico not listed above. 
                                                                  Definition of Qualifying Period 
Definition of Eligible Employer                                   A period of 12 months beginning on the day an eligible 
An employer who is eligible* for Job Training Incentive           employee began working in the qualifying job, or a period 
Program (JTIP) assistance  by the New Mexico Economic             of 12 months beginning on the anniversary of the day an 
Development Department, pursuant to Section 21-19-7               eligible employee began working in a qualified job.
NMSA 1978. To learn more about JTIP assistance contact: 
New Mexico Economic Development Department, Joseph                Definition of Wages 
M. Montoya Building, 1100 So. St. Francis Drive, Santa            Effective July 1, 2013, wages means all compensation paid 
Fe, NM 87505-4147 or call: (505) 827-0300 or (800) 374-           by an eligible employer to an eligible employee through 
3061. Their Internet address is: www.gonm.biz/.                   the employer's payroll system, including those wages the 
                                                                  employee elects to defer or redirect, such as the employee's 
*Prior to July 1, 2013, the employer needed to be ap-             contribution to 401(k) or cafeteria plan programs, but not 
proved for JTIP assistance. Effective July 1, 2013, an            including benefits or the employer's share of payroll taxes.
eligible employer qualifies when they can show that they 
are eligible for JTIP assistance.                                 CERTIFICATIONS
                                                                  The employer shall certify the amount of wages paid to 
Definition of Qualifying Job                                      each eligible employee during each qualified period, the 
A job established by an eligible employer that is occupied        number of weeks during the period the position was oc-
by an eligible employee for at least 48  weeks of a qualify-      cupied, and whether the qualifying job was in a tier one or 
ing period.                                                       a tier two area. Form RPD-41247, Certificate of Eligibility 
                                                                  for the Rural Job Tax Credit, must be completed for each 
A qualifying job shall not be eligible for a rural job tax credit eligible job within an eligible period. Certificates must be 
pursuant to this section if:                                      notarized and submitted with the application.
1. The job is created due to a business merger, acquisi-
   tion or other change in organization;                          APPLICATION
2. The eligible employee was terminated from employ-              Apply to the Taxation and Revenue Department (TRD)  
   ment in New Mexico by another employer involved in             for the credit by completing Form RPD-41238,    Applica-
   the merger, acquisition or other change in organiza-           tion for Rural Job Tax Credit. Complete Form RPD-41247, 
   tion; and                                                      Certificate of Eligibility for the Rural Job Tax Credit, for

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RPD - 41238 STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
Rev. 10/23/2014
Application for Rural Job Tax Credit Instructions
Page 2 of 2

each eligible job within an eligible period. On the applica- USING THE RURAL JOB TAX CREDIT
tion, summarize the wages reported on the certificates The holder of the credit may apply all or a portion of the Rural
and calculate the amount of credit. Attach certificate(s) Job Tax Credit to gross receipts less any taxes collected
to the application and submit to TRD. TRD may approve with respect to local option gross receipts taxes (5.125%
the credit and issue to the applicant a document granting of taxable receipts), compensating, and withholding taxes
the tax credit. due, less the amount of any credit other than the Rural Job
Tax Credit applied. The holder may also apply the credit
FORM INSTRUCTIONS to personal or corporate income tax liability. If a PTE is
Complete all information requested in the address block. a holder of the credit, the PTE may pass the credit to its
1. Enter the number of eligible jobs for which credit is owners so that the owners may claim the credit against
claimed. (A certificate must be attached for each their corporate or personal income tax liabilities. Use Form
eligible job). RPD-41365, Notice of Transfer of Rural Job Tax Credit, to
2. Enter the sum of the wages for each eligible job as report to TRD a distribution of approved rural job tax credit
certified by the applicant. (Maximum $16,000 of wages to the owners, members or partners of a PTE.
paid for each qualifying job per qualified period.) The
Rural Job Tax Credit may be claimed a maximum of: To claim approved credits against tax liabilities, complete
Form RPD-41243, Rural Job Tax Credit Claim Form, and
a. Four qualifying periods for each job performed or submit the form with the return to which the taxpayer wishes
based at a location in a tier one area, or to apply the credit. The credit can be carried forward for
b. Two qualifying periods for each job performed or a period of three years from the date the credit is issued.
based at a location in a tier two area.
TRANSFER OF CREDIT
3. Multiply line 2 by .0625 to compute the total Rural Job
This credit may be sold, exchanged, or otherwise trans-
Tax Credit.
ferred.
Attach a Form RPD-41247, Certificate of Eligibility for the
The parties to such a transaction shall notify the New Mexico
Rural Job Tax Credit, for each eligible job included in line 1.
Taxation and Revenue Department within ten days of the
transaction. Use Form RPD-41365, Notice of Transfer
Complete taxpayer signature, title, telephone number
of Rural Job Tax Credit, to report to TRD a transfer or
and date.
distribution of approved rural job tax credits.
Mail to: Taxation and Revenue Department, ATTN: Direc-
Mail the notification of transfer to: New Mexico Taxation
tor's Office, P.O. Box 8485, Albuquerque, New Mexico
and Revenue Department, PIT Edit Error, P.O. Box 5418,
87198-8485. For status of the application call, (505) 383-
Santa Fe, New Mexico 87502-5418.
0184 or (505) 383-0171.

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