- 2 -
|
RPD-41247 State of New Mexico - Taxation & Revenue Department
Rev. 10/23/2014
INSTRUCTIONS FOR CERTIFICATE OF ELIGIBILITY FOR THE RURAL JOB TAX CREDIT
Page 1 of 2
ABOUT THIS CREDIT DefinitionofEligibleEmployee
Eligible employers may earn the rural job tax credit for each Eligible Employee means any individual other than an indi-
qualifying job created after July 1, 2000. The holder of the vidual who:
credit may apply all or a portion of the rural job tax credit a. bears any of the relationships described in Para-
to gross receipts (excluding tax imposed by a municipality graphs (1) through (8) of the 26 U.S.C. Section 152(a) to the
or county), compensating, and withholding taxes due. The employer or, if the employer is a corporation, to an individual
holder also may apply the credit to personal or corporate who owns, directly or indirectly, more than 50% in value of the
income taxes due. See Form-41238, Application for Rural outstanding stock of the corporation or, if the employer is an
Job Tax Credit, for further details. entity other than a corporation, to any individual who owns,
directly or indirectly, more than 50% of the capital and profits
HOW TO COMPLETE THIS FORM interest in the entity;
Complete all information requested in the address block. An b. if the employer is an estate or trust, is a grantor,
“eligible employer” is an employer in a tier one or tier two area beneficiary or fiduciary of the estate or trust or is an individual
(see below) who is eligibile for in-plant training assistance by who bears any of the relationships described in Paragraphs
the Economic Development Department pursuant to Section (1) through (8) of the 26 U.S.C. Section 152(a) to a grantor,
21-19-7 NMSA 1978. beneficiary or fiduciary of the estate or trust, or
c. is a dependent, as that term is described in 26
1. Enter the date the qualifying job was created. The qualify- U.S.C. Section 152(a)(9), of the employer or, if the taxpayer
ing job must have been created after July 1, 2000. is a corporation, of an individual who owns, directly or indi-
2. Enter the name of the eligible employee(s) occupying the rectly, more than 50% in value of the outstanding stock of
qualifying job. If more than one employee occupied the job dur- the corporation or, if the employer is an entity other than a
ing the qualified period, include the names of each employee. corporation, of any individual who owns, directly or indirectly,
3. Enter the qualifying period for which this credit is claimed. more than 50% of the capital and profits interests in the entity
See the definition of “Qualifying Period” below. or, if the employer is an estate or trust, of a grantor, beneficiary
4. Enter the number of previous qualified periods claimed for or fiduciary of the estate or trust.
this job. The rural job tax credit may be claimed a maximum of:
a. Four qualifying periods for each job performed or Definitionof Qualifying Job
based at a location in a tier one area. A job established by an eligible employer that is occupied
b. Two qualifying periods for each job performed or by an eligible employee for at least 48 weeks of a qualifying
based at a location in a tier two area. period.
Certifications A qualifying job shall not be eligible for a rural job tax credit
To qualify, all of the following certifications must be met. Check pursuant to this section if:
the applicable boxes on the form that apply. 1. The job is created due to a business merger, acquisition
Refer to the definitions for the terms provided in these in- or other change in organization;
structions. 2. The eligible employee was terminated from employment
in New Mexico by another employer involved in the
5. Certify that the employee(s) who is occupying the job merger, acquisition or other change in organization; and
during this period meets the definition of eligible employee. 3. The job is performed by:
6. Certify that the job is a qualifying job as defined. a. The person who performed the job or its functional
7. Certify the wages paid to the eligible employee(s) occupy- equivalent prior to the business merger, acquisition
ing the qualifying job for the qualified period. Enter the lower or other change in organization; or
of either the total wages paid to the employee or $16,000. b. A person replacing the person who performed the
The maximum that may be claimed is $16,000 per qualifying job or its functional equivalent prior to the business
job, per qualifying period. merger, acquisition or other change in organization.
8. Certify that an eligible employee has occupied this job for
at least 48 weeks of the qualifying period indicated on line 3. If, however, a qualifying job that was created by another
9. Certify whether the job is performed or based at a location employer and for which the rural job tax credit claim was
in a tier one or a tier two area. received by the Taxation and Revenue Department prior to
July 1, 2013, and is under review or has been approved shall
Attach this form to Form RPD-41238, Application for Rural Job remain eligible for the rural job tax credit for the balance of
Tax Credit, and mail to: Taxation and Revenue Department, the qualifying periods for which the job qualifies by the new
ATTN: Director’sOffice,P.O.Box8485,Albuquerque,NM employer that results from a business merger, acquisition or
87198-8485. other change in the organization.
|