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State & Local Incentives

New Mexico offers one of the more competitive incentive structures in the mountain west, and several programs set more favorable thresholds for rural communities — which means Quay County businesses often qualify where metropolitan ones do not. RLEDC helps employers identify, qualify for, and apply.

Last reviewed: July 27, 2026 · RLEDC reviews this page when new federal and state data are released.

State of New Mexico Incentives

Administered by the New Mexico Economic Development Department and the New Mexico Taxation & Revenue Department. Program terms, thresholds, and availability are set by the State and change from time to time; RLEDC confirms current terms with the administering agency for every project.

Capital & Infrastructure

Local Economic Development Act (LEDA)

A discretionary state incentive that can be applied toward reimbursement of land, building, or infrastructure costs for a qualifying economic base project. LEDA is the state's principal closing fund and is frequently paired with a local government participation agreement.

Typical use
Land, building, and infrastructure cost reimbursement
Award basis
Discretionary; determined project by project
Local role
Requires local government participation and an ordinance
Administered by
New Mexico Economic Development Department
Workforce

Job Training Incentive Program (JTIP)

Reimburses a substantial share of wages for newly created jobs during a training period of up to six months. JTIP is among the most valuable programs available to an expanding or relocating employer, and rural placement generally improves the reimbursement rate.

Benefit
Reimbursement of approximately 50–75% of trainee wages
Training period
Up to six months
Eligibility
Businesses expanding or relocating in New Mexico, creating new jobs
Administered by
New Mexico Economic Development Department
Tax Credit

High Wage Jobs Tax Credit

A refundable credit equal to 8.5% of the wages and benefits paid for each qualifying new high-wage job, available for up to four years. The qualifying wage threshold is lower in rural communities than in urban ones — a direct advantage for employers locating in Quay County.

Benefit
8.5% of qualifying salary, refundable
Rural threshold
Jobs paying $40,000+ annually
Urban threshold
Jobs paying $60,000+ annually
Duration
Up to four years per qualifying job
Tax Abatement

Industrial Revenue Bonds (IRB)

Issued by a local government, IRBs allow significant abatement of real and personal property tax and compensating tax for a negotiated term. Terms are set community by community and project by project.

Benefit
Real and personal property tax abatement; compensating tax abatement
Issued by
County or municipality
Term
Negotiated, commonly up to 20 or 30 years
Rural Advantage

Rural Jobs Tax Credit

Available to eligible employers creating qualifying jobs in rural New Mexico. The credit may be applied against state gross receipts tax, compensating tax, corporate income tax, or personal income tax liability. Quay County's rural classification supports qualification.

Benefit
Credit applied against GRT, corporate, or personal income tax
Eligibility
Qualifying jobs created in eligible rural areas
Administered by
New Mexico Taxation & Revenue Department
Manufacturing

Manufacturer's Investment Tax Credit

A credit of 5.125% of the value of qualified manufacturing equipment, applied against compensating tax or gross receipts tax liability, subject to employment requirements tied to the value of equipment placed in service.

Benefit
5.125% of qualified equipment value
Applied against
Compensating tax or gross receipts tax
Technology

Technology Jobs & Research and Development Tax Credit

A credit of 5% of qualified research and development expenditures, with an additional credit available where payroll increases accompany the R&D activity. Small-business terms apply to companies with fewer than 50 employees and qualified expenditures not exceeding $5 million.

Benefit
5% of qualified R&D expenditures
Small business
Under 50 employees; expenditures not exceeding $5 million

Local Incentives — Quay County & Tucumcari

Local participation is negotiated project by project with the City of Tucumcari and Quay County. RLEDC coordinates the local conversation so that an employer deals with one point of contact rather than several.

Local ToolDescription
LEDA local participationMunicipal or county participation agreement and ordinance supporting a state LEDA award, which state LEDA generally requires.
Industrial Revenue Bond issuanceIssued by the City of Tucumcari or Quay County for qualifying projects, abating property and compensating tax for a negotiated term.
Infrastructure coordinationWater, wastewater, road, and utility extension planning coordinated with the City, County, and serving utilities as part of project development.
Permitting facilitationCoordinated permitting pathway and timeline commitment through the City and County, arranged by RLEDC in advance of application.
Workforce pipeline commitmentRLEDC builds employer-specified training at no cost to the employer, sized and scheduled to the hiring plan — a local contribution that does not require an appropriation.
Grant development supportRLEDC prepares federal, state, and philanthropic funding applications supporting infrastructure, workforce, and community projects tied to an employer investment.
Federal designations. Portions of Quay County carry federal designations — including HUBZone and Opportunity Zone status — that can materially affect contracting eligibility and investment treatment. RLEDC verifies designation status by specific address as part of project development, and supports HUBZone subcontractor readiness for local firms.

How RLEDC Helps

StepWhat We Do
1. Qualification reviewAssess the project against each state and local program and identify which the employer can realistically qualify for — including the ones that will not work, so no time is spent on them.
2. Package designAssemble a combined state, local, and federal package with the sequencing and timing each program requires.
3. Local coordinationConvene the City, County, and utilities, and secure the local participation state programs require.
4. Application supportPrepare applications, documentation, and supporting analysis, and manage submission through the administering agencies.
5. Workforce commitmentDesign and commit the training pipeline the project requires, delivered at no cost to the employer.
6. Compliance follow-throughSupport post-award reporting and compliance so that awarded benefits are not lost to administrative failure.

Talk to us before you commit to a location.

Several New Mexico incentives must be applied for before a project commences — an employer who breaks ground first can forfeit benefits that were available the week before. A conversation costs nothing and takes an hour.

Contact RLEDC