Local Economic Development Act (LEDA)
LEDA provides cash reimbursements for land, building, or infrastructure improvements that create new jobs and capital investment. Funds are awarded through local governments, with NMP and the New Mexico Economic Development Department assisting throughout.
- Manufacturing
- Logistics
- Aerospace
- Technology
- Headquarters Projects.
- Reimbursement for eligible hard costs (land, building, infrastructure)
- Must meet local job creation benchmarks
- Disbursement tied to performance agreements
Funding from $100K to multi-million, depending on impact.
Job Training Incentive Program (JTIP)
Established in 1972, the Job Training Incentive Program (JTIP) was created to promote economic development through direct workforce investment. The program reimburses a portion of employee wages and training costs for newly created jobs during a company’s initial training period, for up to six months.
Reimbursement rates typically range from 50% to 90% of wages, depending on project characteristics, wage levels, and geographic location. (New Mexico Economic Development Department)
JTIP is available to companies that are expanding or relocating into New Mexico and creating new jobs within the state. Eligible industries generally include:
- Manufacturing
- Non-retail service companies that export at least 50% of revenues (such as software development, testing labs, and engineering services)
- Green and clean-energy industries
Employees covered under JTIP must be newly hired, work full-time (32+ hours per week), and meet residency or domicile requirements. Limited allowances may apply for interns or recent graduates under specific program rules. Companies that have previously participated in JTIP must maintain or exceed prior employment levels to qualify for additional funding.
(New Mexico Economic Development Department; New Mexico Department of Workforce Solutions)
JTIP reimburses qualifying employers for:
- Wages paid during the training period (up to six months)
- Custom classroom training delivered through New Mexico public educational institutions and aligned to job-specific skill requirements
Additional reimbursement bonuses, up to 5% above the base rate, may be available when trainees qualify for the High-Wage Jobs Tax Credit or meet specific criteria such as being recent graduates or veterans.
(New Mexico Economic Development Department; State Records Center & Archives)
JTIP has a strong track record of supporting job creation statewide. In FY 2025, the program:
- Supported 60 companies
- Trained 1,238 workers statewide
- Achieved an average wage of $25.28 per hour
- Supported 820 workers in rural communities, with average rural wages of approximately $21 per hour
The program also included intern participants and workers trained through the Film Crew Advancement Program.
(New Mexico Economic Development Department)
Companies interested in JTIP typically move through the following steps:
- Eligibility Questionnaire: Initial screening to confirm program fit
- Formal Application & Proposal: Submission of job creation plans, training outlines, and budget
- JTIP Board Review: Proposals are reviewed and approved during monthly board meetings
- Training & Reimbursement: Training begins after approval, with reimbursement issued upon completion
Manufacturing Incentives that Reduce Risk
Targeted incentive programs further lower the cost of new facilities, expansions, and technology upgrades. Key tools include:
Investment Tax Credit for Manufacturers, providing a 5.125% credit on qualified equipment that can be applied against several state taxes.
Alternative Energy Product Manufacturers Tax Credit for companies producing components and systems for renewable and alternative energy.
Additional state and local incentives tailored to job creation, training, and rural or strategic locations, coordinated through the New Mexico Economic Development Department and local partners.
New Mexico Rural Jobs Tax Credit
The Rural Jobs Tax Credit is designed to encourage investment and job creation in New Mexico’s rural communities. The program offers tiered, wage-based tax credits for companies that create new jobs in designated rural counties, helping offset employment costs while supporting long-term economic growth in areas outside the state’s major metro regions.
New Mexico’s Investment Tax Credit for Manufacturers supports capital investment by providing a 5%–10% tax credit on qualified equipment and property used in manufacturing operations. This credit helps manufacturers modernize facilities, invest in advanced production technologies, and strengthen long-term operational efficiency within the state.