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RPD-41281 State of New Mexico - Taxation & Revenue Department
Rev. 08/17/2015
Job Mentorship Tax Credit Instructions
ABOUT THIS CREDIT
To encourage New Mexico businesses to hire youth participating in career preparation education programs, a New Mexico
business may claim a credit equal to fifty percent of gross wages paid to qualified students who are employed by the busi-
ness during the taxable year. See Important Definitions below. For assistance completing this form, call (505) 827-0792.
The following restrictions apply:
• The credit cannot be allowed for more than 10 qualified students by a business in a taxable year,
• The credit cannot be allowed for more than 50% of gross wages paid on the first 320 hours of employment for each
qualified student,
• A credit for a qualified student cannot be allowed for more than three tax years, and
• No taxpayer may claim a credit in excess of $12,000 in any taxable year.
Important Definitions
Career Preparation Education Program means a work-based learning or school-to-career program designed for second-
ary school students to create academic and career goals and objectives and find employment in a job meeting those goals
and objectives.
New Mexico Business means a corporation, a partnership, limited partnership, limited liability company treated as a partner-
ship for federal income tax purposes, S corporation or sole proprietorship that carries on a trade or business in New Mexico
and employs in New Mexico fewer than 300 full-time employees at any one time during the tax year.
Qualified Student means an individual who is at least 14 years old, but not more than 21 years old, who is attending an
accredited New Mexico secondary school full-time and who is a participant in a career preparation education program sanc-
tioned by the secondary school.
HOW TO OBTAIN CERTIFICATES AND CLAIM THE CREDIT
The Taxation and Revenue Department issues certificates to a school according to the number of qualified students in the
program on October 15 of that school year. To obtain the certificates, the school principal completes and submits Form
RPD-41279, New Mexico Job Mentorship Tax Credit Certificate Request Form, to a local district tax office. See the
local district office information included with these instructions. The Job Mentorship Tax Credit Certificate (Form
RPD-41280) is executed by the school principal and transferred to a New Mexico business (employer) participating in the
school-sanctioned career preparation education program sponsored by the school. A certificate specifies the qualified student
and the school year to which the certificate applies. A certificate cannot be transferred to another business, another school
year or another qualified student.
To claim the credit, the employer must complete Form RPD-41281, Job Mentorship Tax Credit Claim Form, the accompanying
Detail Report, and attach them to the personal, corporate or fiduciary income tax return for the tax year in which the quali-
fied student was employed. Attach Schedule A to RPD-41281, Job Mentorship Tax Credit Claim Form, if you have unused
job mentorship tax credit available for carry forward from prior years, or your total available credit can be claimed by one or
more owners, partners or associates.
Married individuals who file separate returns for a tax year in which they could have filed a joint return may each claim only
one-half of the credit that would have been allowed on a joint return. A taxpayer who qualifies for and claims a job mentorship
tax credit for employment of qualified students by a partnership, limited partnership, limited liability company, S corporation
or other business association of which the taxpayer is a member may claim a credit only in proportion to his interest. The
total credit claimed by all owners, partners or associates of the business shall not exceed the maximum credit allowed by
the employer in any tax year.
Also attach a copy of an executed Form RPD-41280, Job Mentorship Tax Credit Certificate, for each qualified student em-
ployed during the tax year of the claim. The job mentorship tax credit may only be deducted from the taxpayer’s New Mexico
income tax liability for the tax year. Any unused portion of the credit allowed may be carried forward for three consecutive
tax years, under certain conditions.
Form RPD-41279, New Mexico Job Mentorship Tax Credit Certificate Request Form, and Form RPD-41281, Job Mentorship
Tax Credit Claim Form, can be found on the Department’s web site, www.tax.newmexico.gov. Click on “Forms and Publica-
tions”, then click “Tax Credits”, and click on Job Mentorship.
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