RPD-41298                               State of New Mexico - Taxation and Revenue Department
Rev. 09/13/2016 
           RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT CLAIM FORM
  Name of business                                                         New Mexico CRS identification no. 

 Street address                                                 City, state and ZIP code

 Mailing address                                                City, state and ZIP code

 Name of contact                                            Phone number                             E-mail address
                                                                                                    
INSTRUCTIONS FOR USING THIS FORM:               When claiming the research and development tax credit, this form must accompany the 
CRS-1 form to which the taxpayer wishes to apply the credit. For report periods beginning after July 1, 2011 but not after June 30, 2015,  
a qualified research and development small business may claim a credit for all gross receipts taxes or 50% of withholding taxes paid on 
behalf of employees and owners with no more than five percent ownership that are due to the state or payable by the taxpayer with re-
spect to that business for that report period. The credit must be claimed within one year after the end of the report period to which 
the credit is applicable. You must check each box, declaring the statement to be true for the calendar months within the report period.  

You may apply this credit when you file your return online. Sign into Taxpayer Access Point (TAP) at https://tap.state.nm.us, and follow 
the prompts to attach this form.  To mail in, attach this form and any applicable payments to the CRS-1 tax return in which you wish to 
apply the credit, and mail to the address on the return.  If a refund is due because the CRS-1 form was previously filed and paid, you 
must mail in the return, this form and a completed Application for Tax Refund, Form RPD-41071. CRS-1 assistance call: 505-476-3683. 
Section I.   Indicate the first calendar month in which the business was eligible and        
                   claimed the research and development small business tax credit. 
IMPORTANT: If this is your first time claiming the credit, you must attach a detailed description of the qualified research and development 
performed on a separate page or your claim will be denied. If your qualified research and development description changes, also attach 
a description of the change on a separate page.
Section II.   Eligibility for the research and development small business tax credit during a calendar month: Check all that apply. 
For any calendar month during the current report period, you must be able to check all the statements below, or you are not eligible to 
claim the research and development small business tax credit during that calendar month.
 
       No more than 25 employees on a full-time-equivalent basis have been employed in any prior calendar month.

       Total revenues have not exceeded $5,000,000 in any prior tax year. 

       In any prior calendar month, no more than 50% of the voting securities or other equity interest having the right to designate or 
       elect the board of directors or other governing body of the qualified business has been owned directly or indirectly by another 
       business.

       Qualified research expenditures in the 12 calendar months ending with the calendar month of the report period are at least 20% 
       of total expenditures for those 12 calendar months.
 
       The business has been a qualified research and development small business in the 12-month period ending with this calendar 
       month.

       The business is not a beneficiary of an industrial revenue bond issued by a municipality or county during the current calendar 
       month.

       During the calendar month, the taxpayer did not sell any goods it does not manufacture without receipt of an appropriate NTTC 
       for the sale.
 Section III. RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT CLAIMED
                                   FOR REPORT   PERIOD                                             AMOUNT CLAIMED 
                                        through                           $
                                                                                                 ,   ,             .
 Month     Day                     Year         Month   Day Year
*Enter same report period as indicated on the CRS-1 form to which you wish to claim this credit. 
 I declare that I have examined this form including any accompanying schedules and statements, and to the best of my knowledge and 
 belief, it is true, correct and complete.

 Signature of Taxpayer or Agent _____________________________________________________   Date ___________________

RPD-41298
Rev. 09/13/2016                State of New Mexico - Taxation and Revenue Department
         RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT CLAIM FORM
                                                INSTRUCTIONS

ABOUT THIS  CREDIT: The Research and Development                 period, according to the filing frequency listed on your Reg-
Small Business Tax Credit is available for a qualified research  istration Certificate. If the taxpayer determines that it does 
and development small business for report periods beginning      not qualify for a calendar month during the report period, the 
on or after July 1, 2011, and before June 30, 2015, but for      taxpayer may not claim the credit for that calendar month, but 
no more than 35 consecutive calendar months after the first      may qualify during other months within the reporting period.
month for which a claim for the credit is made by a taxpayer     DEFINITIONS:
or by a person to whom the taxpayer is a successor, pursu-
ant to Section 7-1-61 NMSA 1978. The time period between         "Qualified research and development small business" means a 
July 1, 2009, through June 30, 2011 is not included in the       business including a corporation, general partnership, limited 
determination of consecutive calendar months, but claims         partnership, limited liability company, sole proprietorship or 
made for report periods after July 2005 or prior to July 1,      other similar entity, that:
2009, are included.                                              (1)  employed no more than 25 employees on a full-time-
                                                                   equivalent basis in any prior calendar month;
The amount of the credit is equal to the sum of all gross        (2)  had total revenues of no more than $5 million in any prior 
receipts taxes and 50% of withholding taxes paid on behalf         fiscal year;
of employees and owners with no more than five percent           (3)  did not in any prior calendar month have more than 50% 
ownership, that are due to the state or payable by the qualify-    of its voting securities or other equity interest with the 
ing small business for the calendar month in which the small       right to designate or elect the board of directors or other 
business qualifies.                                                governing body of the qualified business owned directly 
                                                                   or indirectly by another business; and
Transition of the Research and Development Small Busi-           (4)  has made qualified research expenditures for the period of 
ness Tax Credit                                                    12 calendar months ending with the month for which the 
Effective January 1, 2015, the Technology Jobs Tax Credit          credit is sought of at least 20% of its total expenditures 
Act is revised to add an incentive for research and develop-       for those 12 calendar months. 
ment small businesses, and as of January 1, 2016, will be        "Qualified research" means research that is undertaken for 
known as the Technology Jobs and Research and Develop-           the purpose of discovering information that is technological in 
ment Tax Credit Act. The new legislation allows research and     nature and the application of which is intended to be useful in 
development small businesses to obtain the new "technology       the development of a new or improved business component of 
jobs and research and development tax credit" for qualified      the taxpayer, and in which substantially all activities constitute 
expenditures made after January 1, 2015. For report periods      elements of a process of experimentation related to new or 
between January 1, 2015, and June 30, 2015, a taxpayer           improved function, performance, reliability or qualify, but not 
who becomes eligible for a "research and development small       related to style, taste, cosmetic or seasonal design factors.
business tax credit" can choose to either claim the "research 
and development small business tax credit" or the "technology    "Qualified  research  expenditure"  means  an  expenditure 
jobs and research and development tax credit".                   directly related to qualified research, but does not include 
                                                                 any expenditure on research funded by any grant, contract 
By claiming the "research and development  small busi-           or similar mechanism by another person or governmental 
ness tax credit" for a reporting period prior to July 1, 2015,   entity, and  does  not include  any expenditure  on property 
the taxpayer is ineligible to claim the "technology jobs and     that is owned by a municipality or county in connection with 
research and development tax credit" for the same report-        an industrial revenue bond project or expenditures for which 
ing period. Likewise, a taxpayer who claims a "technology        the taxpayer has received any credit pursuant to the Capital 
jobs and research and development tax credit" is ineligible      Equipment Tax Credit Act, the Investment Credit Act or the 
to claim the "research and development small business tax        Technology Jobs Tax Credit Act.
credit" for the same reporting period.                           A taxpayer is not eligible for the credit with respect to a cal-
                                                                 endar month:
CLAIMING THE RESEARCH AND DEVELOPMENT SMALL 
                                                                 • before June 30, 2011, or after June 30, 2015,
BUSINESS TAX CREDIT: The taxpayer may claim the credit 
                                                                 • that is more than 35 consecutive calendar months after 
within one year after the end of the report period. To claim the 
                                                                   the first month for which a claim for the credit is made by 
credit, attach Form RPD-41298, Research and Development 
                                                                   the taxpayer or by the successor in business as defined 
Small Business Tax Credit Claim Form, to the CRS-1 form. 
                                                                   in Section 7-1-61 NMSA 1978. The time period between 
Claiming the credit against a report period renders the tax-
                                                                   July 1, 2009, through June 30, 2011, is not included in 
payer ineligible to claim the investment credit or technology 
                                                                   the determination of consecutive calendar months, but 
jobs tax credit against the same report period. 
                                                                   claims made for report periods after July 2005 or prior 
A report period is a calendar month, quarter or semiannual         to July 1, 2009, are included;

RPD-41298
Rev. 09/13/2016     State of New Mexico - Taxation and Revenue Department
         RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT CLAIM FORM
                                                   INSTRUCTIONS

• after which the qualified research and development small  •    during which the taxpayer sold any goods of which the 
  business employs more than 25 employees on a full-time-        taxpayer is not a manufacturer, unless the taxpayer has 
  equivalent basis;                                              received an appropriate NTTC for such sale or sales.
• in a fiscal year of the qualified research and development 
  small business after the first fiscal year in which that busi- FORM INSTRUCTIONS: Complete all information requested 
  ness has total revenues in excess of $5 million;               in the address block. Complete Sections I and II. To qualify, 
• after the calendar month in which more than 50% of the         you must be able to answer yes to all questions in Section 
  qualified research and development small business vot-         II. In Section III, indicate the report period of the CRS-1 form 
  ing securities or other equity interests having the right to   and the amount of credit to be applied to this CRS-1 form. 
  designate or elect the board of directors or other governing   First-time claimants must attach a description of the qualified 
  body of that business are owned directly or indirectly by      research and development performed by the business. Sign 
  another business;                                              and date the application. 
• if the business was not a qualified research and devel-
  opment small business in the 12-month calendar period 
  ending with that calendar month, 
• during which the taxpayer is the beneficiary of an industrial 
  revenue bond issued by a municipality or county; or