NEW MEXICO WAS RANKED 1ST IN THE WEST FOR MANUFACTURERS WITH THE LOWEST EFFECTIVE TAX RATE
Don’t take our word for it, take Ernst and Young’s here. We’ve done what it takes to make it easy, and inexpensive, to expand to New Mexico. The state passed a comprehensive Jobs Package designed to work for businesses and workers; this lowered corporate income tax rates to 5.9% and provided a single sales factor apportionment methodology for corporations whose principal business activity is manufacturing.
New Mexico has the workforce and talent that is essential to the advanced manufacturing industry. With the Southwest experiencing the fastest rate of population growth in the United States, your company will have access to the workforce they need with a below-average compensation costs.
New Mexico has worked to develop business parks dedicated to advanced manufacturing. The Sandia Science and Tech Park, for example, is home to dozens of companies that support national laboratories. Our universities and community colleges, too, have created advanced manufacturing programs that are growing to meet New Mexico’s demand for skilled workers. All of these projects have one common goal: connecting your company to the right parts to make your manufacturing goals a reality.
The Southwest is the fastest growing region of the country and New Mexico is right at the heart of it, offering the lowest effective tax rate for manufacturers in the nine-state Western region, and no inventory tax. The New Mexico Jobs Package, created in 2013, reduced the state’s corporate income tax rate 22 percent—from 7.6 percent to a top rate of 5.9 percent. The state also has the lowest property tax burden in the nation—property here is assessed at only 33% of its market value.
Additionally, the state has also enacted a single sales factor for manufacturers without an investment threshold in New Mexico that will phase in over a five-year period to 100 percent beginning at 50 percent in taxable year 2014. This will abate the state corporate tax liability for most manufacturers and eliminates any penalties or obstacle for new investment.
New Mexico is supported by three interstate freeways, a vast railway system, and a number of regional and international airports, New Mexico offers direct access to much of the United States. From New Mexico, it’s possible to reach Texas, Arizona, Colorado, Kansas, Oklahoma and Utah within one day’s trucking, and California markets in two days. Distribution companies, manufacturers, and other businesses are well-positioned here to serve both east and west coast clients.
MANUFACTURING COMPANIES IN NEW MEXICO INCLUDE