DALLAS, June 24, 2015 /PRNewswire/ -- New Mexico
Governor Susana Martinez signed into
law legislation to improve New
Mexico's tax incentive toolbox for economic development.
House Bill 2, passed during a special session of the New Mexico
Legislature and signed by the Governor on June 15, 2015, amends several existing
New Mexico tax laws and creates
additional tax incentives aimed at spurring job creation across a
more diverse group of industries with a focus on small businesses
and the technology sector. Key tax incentive changes include:
- Angel Investment Credits
- Increases the annual aggregate credit amount to $2MM
- Increases the maximum credit from $25K to $65K;
additionally the number of individual investments that can be made
per investor is increased from two per tax year to five
- The credit can be taken against a taxpayer's income tax
liability and is eligible for a five-year credit carry-forward
- These changes apply to taxable years beginning on January 1, 2015 through December 31, 2026
- Gross Receipts Tax Deduction
- Restores five-year deduction period for trade-support companies
that locate within 20 miles of the southern border zone during
July 1, 2003 but before July 1, 2013 or on or after July 1, 2015 but before July 1, 2021
- Receipts derived from business activities and operations of a
trade-support company may be deducted from the taxpayer's gross
receipts
- These changes are effective on July 1,
2015
- Single Sales Apportionment for Corporate Income
- Headquarter operations have the option to utilize single-sales
income apportionment which will be fully phased in by the taxable
year beginning January 2016
- The effective date of the provisions of this act apply to
business income earned during taxable years beginning on
January 1, 2015
- Gross Receipts and Compensating Tax Act
- Creates a deduction from receipts for sales made to the United
States Department of Defense for contractors providing qualified
research and development services and qualified directed energy and
satellite-related inputs, limited to contracts made on or after
January 1, 2016 and before
January 1, 2021
- Technology Jobs Tax Credit and Research and Development Tax
Credit
- Combines the two existing "Technology Jobs Tax Credit" and the
"Small Business Research and Development Tax Credit"
- Broadens participation eligibility by increasing the employment
maximum definition of a small business from 25 to 50
employees, as well as by removing the restriction that qualified
research expenditures be at least 20% of total expenditures
- "Basic Credit" can be taken against the taxpayer's compensating
tax, withholding tax, or gross receipts tax, excluding local option
gross receipts tax, provided that no taxpayer claim a credit that
exceeds the sum due
- "Additional Credit" can be taken against the taxpayer's income
tax or corporate income tax liability, provided that no taxpayer
claim a credit that exceeds the sum due
- The "Additional Credit" may be refundable to small businesses
which do not employ more than 50 unemployment insurance eligible
positions, and do not have qualified expenditures more than $5MM in
the taxable year for which an additional credit is claimed
- It is effective July 1, 2015
About Ryan
Ryan is an award-winning global tax services firm, with the largest
indirect and property tax practices in North America and the seventh largest
corporate tax practice in the United
States. With global headquarters in Dallas, Texas, the Firm provides a
comprehensive range of state, local, federal, and international tax
advisory and consulting services on a multi-jurisdictional basis,
including audit defense, tax recovery, credits and incentives, tax
process improvement and automation, tax appeals, tax compliance,
and strategic planning. Ryan is a three-time recipient of the
International Service Excellence Award from the Customer Service
Institute of America (CSIA) for its commitment to world-class
client service. Empowered by the dynamic myRyan work
environment, which is widely recognized as the most innovative in
the tax services industry, Ryan's multi-disciplinary team of more
than 2,100 professionals and associates serves over 12,000 clients
in more than 40 countries, including many of the world's most
prominent Global 5000 companies. More information about Ryan can be
found at ryan.com.
Logo - http://photos.prnewswire.com/prnh/20140716/127737
TECHNICAL INFORMATION CONTACTS:
Sharon Welhouse
Principal
Ryan
512.476.0022
sharon.welhouse@ryan.com
Melissa Munoz
Manager
Ryan
505.503.4987
melissa.munoz@ryan.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/new-mexico-governor-inks-tax-bill-containing-incentives-300104137.html
SOURCE Ryan