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RPD-41288
Rev. 05/15/2019 STATE OF NEW MEXICO
TAXATION AND REVENUE DEPARTMENT
APPLICATION FOR HIGH-WAGE JOBS TAX CREDIT
INSTRUCTIONS Page 3 of 6
in New Mexico by another employer involved in the is a corporation of an individual who owns, directly or
business merger or acquisition or other change in business indirectly, more than 50% in value of the outstanding stock
organization with the taxpayer; and of the corporation, or if the employer is an entity other than a
3. the new high-wage economic-based job is performed by: corporation, of an individual who owns, directly or indirectly,
more than 50% of the capital and profits interest in the entity,
a. the person who performed the job or its functional
or if the employer is an estate or trust of a grantor, beneficiary,
equivalent prior to the business merger or acquisition
or fiduciary of the estate or trust; or
or other change in business organization; or
d. is working or has worked as an employee or as an
b. a person replacing the person who performed the
independent contractor for an entity that, directly or indirectly,
job or its functional equivalent prior to a business
owns stock in a corporation of the eligible employer or other
merger or acquisition or other change in business
interest of the eligible employer that represents 50% or more
organization.
of the total voting power of that entity or has a value equal to
50% or more of the capital and profits interest in the entity.
If, however, a new high-wage economic-based job was
created by another employer and for which an application Domicile means the sole place where an individual has a true,
for the high-wage jobs tax credit was received and is under fixed, permanent home. It is the place where the individual
review by the Taxation and Revenue Department prior to the has a voluntary, fixed habitation of self and family with the
time of the business merger or acquisition or other change in intention of making a permanent home.
business organization, the employer shall remain eligible for the
New job means a job that is occupied by an employee who
high-wage jobs tax credit for the balance of the qualifying
has not been employed in New Mexico by the eligible employer
periods. The new employer that results from a business merger
in the 3 years prior to the date of hire.
or acquisition or other change in business organization may
only claim the high-wage jobs tax credit for the balance of Qualifying period means the 12 months beginning on the
the qualifying period for which the qualifying job is otherwise day an eligible employee begins working in a new high-wage
eligible. job, or 12 months beginning on the anniversary of the day
an eligible employee began working in a new high-wage job.
A job shall not be eligible for a credit pursuant to this section if the
job is created due to an eligible employer entering into a contract Resident means a natural person whose domicile is in New
or becoming a subcontractor to a contract with a governmental Mexico at the time of hire or within 180 days of the date of hire.
entity that replaces one or more entities performing functionally
equivalent services for the governmental entity unless the Threshold job means a job that is occupied for at least 44
job is a new high-wage economic-based job that was not weeks of a calendar year by an eligible employee and that
performed by an employee of the replaced entity. meets the wage requirement for a new high wage job.
Eligible employee means an individual who is employed in Wages means all compensation paid by an eligible employer
New Mexico by an eligible employer and who is a resident to an eligible employee through the employer's payroll system,
of New Mexico. Eligible employee does not include an including those wages that the employee elects to defer or
individual who: redirect or the employee's contribution to a 401(k) or cafeteria
a. bears any of the relationships described in Paragraph plan program, but wages does not include benefits or the
(1) through (8) of 26 U.S.C. Section 152(a) to the employer or employer's share of payroll taxes, social security or medicare
if the employer is a corporation to an individual who owns, contributions, federal or state unemployment insurance
directly or indirectly, more than 50% in value of the outstanding cotributions or workers' compensation.
stock of the corporation or, if the employer is an entity other
than a corporation to an individual who owns, directly or Benefits means all remuneration for work performed that is
indirectly, more than 50% of the capital and profits interest provided to an employee in whole or in part by the employer,
in the entity; other than wages, including the employer's contributions to
b. if the employer is an estate or trust; is a grantor, insurance programs, health care, medical, dental and vision
beneficiary, or fiduciary of the estate or trust; or is an individual plans, life insurance, employer contributions to pensions, such
who bears any of the relationships described in Paragraphs as a 401(k), and employer-provided services such as child care
(1) through (8) of 26 U.S.C. Section 152(a) to a grantor, offered by an employer to the employee. Benefits does not
beneficiary, or fiduciary of the estate or trust; include the employer's share of payroll taxes, social security,
c. is a dependent, as that term is described in 26 medicare contributions, federal or state unemployment
U.S.C. Section 152(a)(9), of the employer or if the taxpayer insurance contributions, or workers' compensation.
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