SALT Report 2397 – The New Mexico high wage jobs tax credit that allows business to deduct a percentage of an employee’s salary from the gross receipts tax, compensating tax, withholding tax, personal income tax, and corporate income tax has been amended.
Amendments include the following:
- An extension of the tax credit until July 1, 2020, and
- The minimum wage requirement has been increased for jobs created after July 1, 2015. The minimum qualifying salary is now $60,000 in urban areas and $40,000 in rural areas.
The high-wage jobs tax credit may be claimed in an amount equal to 10% of the wages and benefits distributed to an eligible employee in a new high-wage economic based job. However, the amount deducted cannot exceed $12,000 per job, per qualifying period.
The credit can be deducted from the modified combined tax liability of the employer/taxpayer. If the credit exceeds the modified combined tax liability, the excess will be refunded to the employer/taxpayer.
The provisions in this Bill are effective June 14, 2013.
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