San Juan County has a favorable business environment, starting with the tax advantages that come with being in New Mexico. Per the Tax Foundation, New Mexico has several general tax advantages, such as:
- Some of the lowest property tax rates in the nation
- Top-ten lowest corporate income tax rate, currently with top rate of 5.9% due to the Single Sales Factor, which allows regional headquarters and manufacturers the option for calculating their corporate income tax to dramatically reduce their state corporate income tax liability.
- Top-ten unemployment insurance taxes, with a relatively simple experience formulas and comparatively fewer surtaxes.
Per the NM Economic Development Department, other notable tax advantages found in New Mexico include:
- A $50 annual Franchise Tax.
- No Inventory Tax.
In addition, there are many programs at the county, state and tribal levels designed to help area business development, employee training and workforce development through tax abatement assistance. The staff at Four Corners Economic Development (4CED) is knowledgeable about all the incentives available to local businesses and is prepared to assist business owners with helping identify resources and advisors to create the optimal structure for a business’ unique situation.
A taxpayer who is an eligible employer may apply for and receive a tax credit for each new high-wage economic-base job. The credit amount equals 8 1/2% of the wages and benefits paid for each new economic-base job created, up to $12,750 per job.
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....
New Mexico’s Local Economic Development Act (LEDA) administers 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...
San Juan County has five tax-advantaged opportunity zones. Each zone has its own set of targeted economic development focus areas.
Designation as an Opportunity Zone allows for the creation of a new class of investment vehicle with tax advantages authorized to aggregate and deploy...
This credit can be applied to taxes due on state gross receipts, corporate income or personal income tax. Rural New Mexico is defined as any part of the state other than Los Alamos County; certain municipalities: Albuquerque, Rio Rancho, Farmington, Las Cruces, Roswell, and Santa...
Industrial Revenue Bonds (IRBs) provide financing of land, buildings, furniture, fixtures, and equipment. This can provide for a certain degree of tax exemption/abatement on purchases of the assets.
San Juan County has approved IRBs in amounts ranging from $15,000,000 to $70,000,000 for the energy...