New Mexico has improved its business climate more than any state in the West over the past three years. A recent study by Ernst & Young and the New Mexico Tax Research Institute determined that we have reduced tax rates for manufacturing by nearly 60 per cent – the greatest drop, by far, in the western states studied. New Mexico’s after-credit manufacturing rate is now at 3.3 per cent – the best in the region.

Additionally, the non-partisan Tax Foundation recognised New Mexico’s successful bi-partisan approach between Governor Susana Martinez and the state legislature with its prestigious award for “Outstanding Achievement in State Tax Reform”.

These recent, significant improvements to the state’s business climate are only part of the reason why it is time to take a closer look at New Mexico.

STATE TAX REFORM
In April of 2013, Governor Susana Martinez signed the New Mexico Jobs Package, a significant tax reform bill that will further strengthen the state’s business climate and economy. The package was the result of ongoing discussions and compromise between the governor and leadership from both parties in the House and Senate, and bolsters New Mexico’s competitiveness with neighbouring states.

As part of the jobs package, New Mexico is enacting a single sales factor for all manufacturers without any investment threshold. This shift to a single sales factor will provide significant corporate income tax savings to many manufacturers.

Also of note, the corporate income tax reduction was passed lowering the corporate income tax (CIT) rate from 7.6 to 5.9 per cent over five years. By reducing the CIT to 5.9 per cent New Mexico will be below the national average.

“Republicans and Democrats came together and passed a game-changing jobs package that will level the playing field with our surrounding states and help New Mexico compete for new business, new investment, and new jobs”, Governor Martinez said. “I’m proud of the fact that, in a bipartisan way, we answered the call to compete”.

WHY NEW MEXICO
• Productive workforce
• Low property taxes
• Competitive incentives
• Exceptional R&D facilities
• Low energy costs
• Advanced infrastructure
• Great climate
• Quality lifestyle

KEY BUSINESS SECTORS
New Mexico offers a variety of unique assets to the global business community which positions the state at a significant competitive advantage in a diverse list of important and emerging industry segments.

• Energy and Natural Resources – Abundant natural resources make the state a leader in energy production; from oil and gas, to wind, solar and algae production
• Aerospace and Space and Defence – Space pioneers found New Mexico 75 years ago and the industry continues to grow here thanks to an ideal climate, restricted air space, testing facilities, Spaceport America and more
• Value Added Agriculture – New Mexico is the number one state for chilli production and the number two state in pecan production in the nation. Competitive electric prices, land costs and wages separate New Mexico from other states
• Distribution, Logistics and Transportation – Companies have discovered that New Mexico’s location – at the centre of the nation’s five fastest growing states – ideal for goods distribution. Interstate 25, originally known as the Camino Real or Royal Road, connects the state to both international borders. Two interstate highways connect New Mexico to the east and west coasts
• Advanced Manufacturing – Despite national trends, manufacturing is growing here. Three national research laboratories, world renowned research universities and more specialised R&D facilities provide cutting-edge technologies and services for advanced production capabilities
• Digital Emerging Media – New Mexico offers production companies a very progressive economic tax credit incentive for CGI and related services rendered in New Mexico for film and multimedia projects. New Mexico is already home to several award-winning digital media artists and our state’s universities are producing more skilled digital media talent than ever
• Back Office and Technical Support – Home to an increasing number of customer service centres, New Mexico enjoys a strong and growing back office sector with some of the largest US consumer companies represented such as, Lowe’s and Alliance Data Systems

The key industries are well supported by the state’s targeted incentives such as the Job Training Incentives Program (JTIP). JTIP has been recognised as one of the top five most aggressive workforce development incentive programmes in the nation.