New Mexico R&D Tax Credit Filing Instructions
To claim the Research and Development (R&D) tax credit in New Mexico, businesses must generally follow a two-step process. First, taxpayers need to apply for approval of the credit by filing Form RPD-41385, Application for Technology Jobs and Research and Development Tax Credit. This application must be submitted within one year following the end of the calendar year in which the qualified expenditures were made. Once approved, the actual credit is claimed by attaching Form RPD-41298, Research and Development Small Business Tax Credit Claim Form, to the taxpayer’s CRS-1 tax return. This claim must also be made within one year after the end of the report period to which the credit applies. The credit, officially known as the “Technology Jobs and Research and Development Tax Credit,” is available to qualified businesses engaging in R&D activities within the state, with specific criteria for eligible expenditures and business size. Taxpayers can typically apply and claim these credits online through the New Mexico Taxation and Revenue Department’s Taxpayer Access Point (TAP) or by mail.