New Mexico’s Promise, Your Vision

Combining all of the assets, strengths, space heritage, and competencies of New Mexico provide for astounding opportunities for space. The State’s legislative, tax, and regulatory climate encourage growth and sustainability for the space sector. Additionally, training incentives, world-class institutions, and some of the most advanced incubator and finance access in the world exist in New Mexico—providing everything needed to succeed in the space industry. Explore the possibilities below to realize the opportunities abound in New Mexico:

Tax Incentives:

Aerospace Research and Development Tax Deduction Aerospace services are the research and development services sold or for resale to an organization for resale by the organization to the U.S. Air Force. When R&D services are sold to another corporation for resale to the Air Force, the seller’s receipts are deductible. If the R&D services are sold to an intermediary for resale to a corporation for resale to the Air Force, those receipts are also deductible.

Space Gross Receipts Tax Deductions

There are four separate deductions connected with the operation of a spaceport in New Mexico. Businesses may deduct the receipts from launching, operating or recovering space vehicles or payloads; from preparing a payload in New Mexico; from operating a spaceport in New Mexico; and from the provision of research, development, testing and evaluation services for the United States Air Force operationally responsive space program.

Research and Development Gross Receipts Tax Deduction

R&D services exported from the state are deductible from the gross receipts tax.

Research & Development Small Business Tax Credit

Qualified small businesses receive a tax credit equal to the sum of all gross receipts, compensating and withholding taxes due if at least 20% of their total annual expenses are for R&D.

Technology Jobs Tax Credit

Tax credits up to 8% of expenditures (including payroll) available for research and development in urban areas, doubling to 16% in rural communities.

Technical Assistance:

New Mexico Partnership

The New Mexico Partnership is a public-private non-profit organization created in 2004, and tasked with generating economic growth via attracting businesses to the state of New Mexico. We help businesses strategically locate in New Mexico, and we have partnered with numerous corporations to aid in their successful relocation and expansion. We would love to hear from you. If you are considering expansion or relocation our cohesive, flexible, responsive team will utilize our resources to expedite the process. Learn more on our website, or call our office at (888) 715-5293.

New Mexico Economic Development Department

The Economic Development Department’s Business Team works closely with the local economic development organizations to provide a variety of assistance for New Mexico businesses. Whether you are looking for financial, labor training, technical or regulatory assistance, this team has the expertise to guide you through the process.

New Mexico Manufacturing Extension Partnership

This nonprofit group provides New Mexico manufacturers with technical expertise in a number of areas. MEP has access to over 2,000 business specialists having a broad range of technical expertise. Some of the many services this organization provides include: feasibility studies, lean manufacturing techniques, and product commercialization.

Small Business Development Centers

There are eighteen SBDC centers throughout the state which provide technical assistance to clients interested in starting or expanding businesses.

Technology Ventures Corporation

Working to commercialize technologies and create jobs, Technology Ventures Corporation helps entrepreneurs build high-quality business cases and find the right investors. TVC is a non-profit 501(c)3 managed by Lockheed Martin to help spin-off Sandia National Laboratories’ technology into viable commercial businesses.

Space Alliance Technology Outreach Program

SATOP strives to transfer the knowledge obtained through the federal space program to small businesses. Small businesses are encouraged to submit a challenging technical problem for analysis. If SATOP feels they are able to provide assistance, the company will receive up to forty hours of free technical expertise from their group of engineers and scientists.

Sandia National Laboratory

Small Business Assistance Program

The Small Business Assistance Program provides engineering and scientific services at no charge to New Mexico businesses. Companies may obtain up to $10,000 per year in technical assistance if they are located in a rural area of the state, and up to $5,000 in Bernalillo County.

Mentor Program (http://www.sandia.gov/bus-ops/partnerships/sbp/MP/MPcontent) Volunteer mentors are teamed with small businesses to create an advisory relationship focusing on helping the company achieve their development goals.

Los Alamos National Laboratory Technology Commercialization Office

Offers a broad range of services to help regional businesses and entrepreneurs in the high tech sector of Northern New Mexico.