Gross Receipts Tax Credits

This page summarizes the tax credits that can be taken against gross receipts, compensating or withholding taxes.

You may qualify for one of these credits:

• Tax paid to another state on property acquired in that state or another state for use in New Mexico may be applied to gross receipts tax liability;
• Tax paid to another state – product of research and development services performed outside New Mexico is initially used in New Mexico and the service has been taxed through a gross receipts, sales or similar tax in another state;
• Compensating tax on construction projects materials and services incorporated into the construction project may be applied to gross receipts tax liability;
• Investment credit may be applied against the state gross receipts (excluding local option gross receipts taxes). It can be applied also to compensating or withholding tax liability;
• Rural jobs tax credit may be applied against taxes due on the CRS-1 Form (excluding local option gross receipts taxes), or against personal or corporate income tax liability;
• Laboratory partnership with small business tax credit may be claimed only by national laboratories operating in New Mexico and is applied against gross receipts taxes due up to $1,800,000 excluding local option gross receipts taxes;
• Technology jobs tax credit may be applied against gross receipts, compensating or withholding tax. The additional credit may be applied against personal or corporate income tax liability;
• Sales or use tax paid to another state may be applied against compensating tax liability;
• High-wage jobs tax credit may be claimed by eligible employers against gross receipts, compensating, withholding tax and other CRS taxes, except local option gross receipts taxes. The excess is refundable to the taxpayer when the credit is more than the tax liability;
• Sale of service for resale tax credit may be applied against gross receipts tax or governmental gross receipts tax liability;
• Research and development small business tax credit may be claimed by qualified research and development small businesses and is applied against gross receipts or withholding tax liability;
• Affordable housing tax credit may be applied against gross receipts, compensating, withholding, personal income or corporate income tax liability through the sale or transfer of vouchers issued by the Mortgage Finance Authority;
• Hospital credit may be claimed by hospitals licensed by the New Mexico Department of Health against gross receipts tax phased in over a four-year period;
• Biodiesel blending facility tax credit may be claimed by a rack operator against gross receipts and compensating taxes for 30% of the cost of purchasing or installing biodiesel blending equipment;
• Licensed medical doctor or licensed osteopathic physician tax credit for unpaid charges for services provided in a hospital may be claimed against gross receipts taxes; phased-in over three years;
• Advanced energy tax credit may be claimed by an interest owner for expenditures for the development and construction of a new solar thermal electric generating facility or a new or repowered coal-based electric generating unit and an associated coal gasification facility; or
• Alternative energy products manufacturing tax credit may be claimed against gross receipts, compensating, withholding tax and other CRS taxes, except local option gross receipts taxes. The excess credit may be carried forward for up to five years.

There are additional qualifications for these tax credits. For more specific information about qualifying and applying for these tax credits, download FYI-106: Claiming Business-Related Tax Credits for Individuals and Businesses.