• New Mexico does not tax property-in-transit through the state or warehoused for delivery out-of-state
  • No inventory tax
  • No gross receipts tax on consumables used in manufacturing, including electricity and natural gas
  • No intangible property tax
  • No tax on real estate transactions
  • Lowest property tax in the nation
  • Single sales factor apportionment methodology for manufacturers
  • No estate, inheritance or gift taxes
  • Industrial Revenue Bonds (IRB)

Local Economic Development Act (LEDA)

Under the Local Economic Development Act (LEDA) the New Mexico Economic Development Department (NMEDD) is granted authority to administer grants to Local Governments (Municipality and/or County); to assist expanding or relocating businesses that are Qualified Entities that will stimulate economic development and produce public benefits pursuant to LEDA.  All grants are funded on a strictly reimbursement basis.

NMEDD targets economic development projects that comply with all legal facets of LEDA.

Additional consideration is given to project that demonstrate: 

  • Significant Community Impact and Support
  • Rural and Underserved Areas of New Mexico
  • Increased Wages and Job Creation
  • Significant New Capital Investment; and
  • Environmentally Sustainable Outcomes.

Opportunity Zones 

To encourage development in NM Opportunity Zones, NMEDD is offering an incentive as a part of LEDA. New Mexico will guarantee an additional $1 million in LEDA funding to projects locating in an Opportunity Zone if they meet specific criteria:

  • The project must be in one of the nine key industry sectors outlined by the Governor: aerospace, biosciences, cybersecurity, film & television, global trade, intelligent manufacturing, outdoor recreation, sustainable & green energy and sustainable value-added agriculture.
  • Investment must create a minimum of $2.5 million dollars in annual payroll with average annual salaries greater than 2% above the county average as defined by the Bureau of Labor statistics QCEW Data; if located in Santa Fe, Albuquerque or Rio Rancho, investment must create a minimum of $3.5 million dollars in annual payroll with average annual salaries greater than 2% above the county average as defined by the Bureau of Labor statistics QCEW Data.
  • Must commit to a 10-year agreement.
  • Must have a capital investment of $10 million or higher; if located in Santa Fe, Albuquerque or Rio Rancho $15 million or higher.
  • The project must be an expansion or out-of-state relocation

To see a map of opportunity zones in our county visit: https://www.nmopportunity.com/

Job Training Incentive Program (JTIP):

New Mexico has one of the most generous training incentive programs in the country. The Job Training Incentive Program (JTIP) funds classroom and on-the-job training for newly-created jobs in expanding or relocating businesses for up to 6 months. The program reimburses 50-75% of employee wages. Custom training at a New Mexico public educational institution may also be reimbursed.

Businesses eligible for consideration include: 

  • Companies that manufacture or produce a product in New Mexico
  • Non-retail service companies that export a substantial percentage of services out of state (50% or more of revenues and/or customer base). Software development companies, customer support centers and product testing laboratories are three examples of businesses that have qualified in this category
  • Certain green industries
  • The company must be financially sound and must be creating new jobs as a result of expansion or relocation to the state of New Mexico.

Jobs eligible for funding through JTIP must be: 

  • Full time (minimum of 32 hours per week)
  • Year-round
  • Directly related to the creation of the product or delivery of the service. (1 in 5 positions applied for may be outside product/service creation). Typical examples include marketing, sales, and general administration
  • Manufacturing examples: production worker, electronic equipment assembler, first line supervisor, industrial engineering technician, R&D scientists, and engineers
  • Service examples: customer service representative, environmental engineering technician, web developer, software developer
  • Intern positions may be eligible

To be eligible for funding under JTIP, trainees must: 

  • Be new hires to the company
  • Have been residents of the state of New Mexico for at least 1 year at any time prior to employment.  Trainees that do not meet the one-year residency requirement may be eligible if hired into high-wage jobs.
  • Not have left high school in the 3 months prior to employment, unless they have graduated or completed a HSE (High School Equivalency)


Incentives by Category

Advanced Manufacturing

Aerospace & Aviation

Back Office & Technical Support

Emerging & Digital Media

Energy & Natural Resources

Logistics, Distribution & Transportation

Value Added Agriculture



For more information visit the sites listed below:

New Mexico Economic Development Department 

New Mexico Finance Authority