This is a great time to invest in New Mexico. Recent changes to New Mexico’s tax structure, which further improved our operating environment along with our talented workforce and aggressive financial incentives make New Mexico an attractive location for long term success.
According to Ernst & Young’s recent tax study, New Mexico is now the most competitive state for manufacturing in the region given the recent enhancements. Governor Susana Martinez and the legislature’s bipartisan efforts to improve New Mexico’s competitiveness are working—business recruitment and expansion is taking place at an increased rate statewide.
The New Mexico corporate income tax rate is in the process of phasing down to 5.9 percent by 2018. Currently, it stands at 7.6 percent. The 22% rate reduction benefits all businesses in New Mexico and is intended to stimulate activity. In addition, manufacturers may elect an optional Single Sales Factor and apportion income tax to weight in-state sales. The phased-in elimination of gross receipts taxes on consumables including electricity and industrial gases used in the production process further reduce costs for manufacturers.
Low Energy Costs
New Mexico’s electricity and natural gas rates are below the national average and those of its neighboring competitor states. Electricity rates are substantially lower here than both the national and regional averages. According to the U.S. Energy Information Administration, New Mexico’s industrial electric rates are 7% below the national and regional average.
New Mexico is also one of the nation’s leading energy producers with a strong array of energy resources ranging from oil, natural gas and nuclear. The state boasts vast solar energy and wind potential as well as geothermal and biofuels.
Low Property Taxes
New Mexico has the forth lowest property tax in the nation according to the Tax Foundation. With an effective rate of 1.5% for much of the state, there is also the ability to further abate taxes on both real and personal property through the use of an Industrial Revenue Bond, which makes the state especially attractive for high capital investment opportunities. In addition, New Mexico does not have an inventory tax.
Affordable Real Estate and Cost of Living
121,589 square miles makes New Mexico the fifth largest state, and that helps keep the cost of real estate reasonably priced. Once we’ve identified your site requirements, we’ll find a location that will work for you. New Mexico boasts an affordable cost of living below the national average.
A Qualified, Productive Workforce
New Mexico offers you a highly diverse, bilingual workforce. Our people are motivated, skilled and well educated. With over 100,000 college students in the state and the highest number of PhDs per capita in the country our labor force is positioned to build your company a pipeline of talent.
New Mexico offers employers a suite of aggressive incentives including cash reimbursement for on-the-job training (New Mexico Job Training Incentive Program) as well as the refundable High Wage Jobs Tax Credit and other tax credits that may be applied to gross receipts taxes.
Efficient Market Access
New Mexico is in close proximity to the five fastest growing states in the Southwest—Nevada, Arizona, Utah, Idaho and Texas. Three interstate freeways and a strong rail distribution system give you direct access to the West Coast, East Coast, Midwest, and the international borders of Canada and Mexico.