New Mexico 2025 Regular Session

New Mexico House Bill HB368 Compare Versions

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1		-	~~HB 368~~
2		-	~~Page 1~~
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	28	+	HOUSE BILL 368
	29	+	57
	30	+	TH LEGISLATURE
	31	+	-
	32	+
	33	+	STATE
	34	+
	35	+	OF
	36	+
	37	+	NEW
	38	+
	39	+	MEXICO
	40	+
	41	+	-
	42	+	FIRST SESSION
	43	+	,
	44	+
	45	+	2025
	46	+	INTRODUCED BY
	47	+	Joshua N. Hernandez and Meredith A. Dixon
28	48		AN ACT
29	49		RELATING TO THE HIGH-WAGE JOBS TAX CREDIT; AMENDING THE
30	50		DEFINITION OF "THRESHOLD JOB" APPLICABLE TO THE CREDIT.
31	51		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
32	52		SECTION 1. Section 7-9G-1 NMSA 1978 (being Laws 2004,
33	53		Chapter 15, Section 1, as amended) is amended to read:
34		-	"7-9G-1. HIGH-WAGE JOBS TAX CREDIT--QUALIFYING HIGH-
35		-	~~WAGE~~ JOBS.--
	54	+	"7-9G-1. HIGH-WAGE JOBS TAX CREDIT--QUALIFYING HIGH-WAGE
	55	+	JOBS.--
36	56		A. A taxpayer that is an eligible employer may
37		-	apply for, and the department may allow, a tax credit for
38		-	~~each~~ new high-wage job. The credit provided in this section
39		-	~~may be~~ referred to as the "high-wage jobs tax credit".
	57	+	apply for, and the department may allow, a tax credit for each
	58	+	new high-wage job. The credit provided in this section may be
	59	+	referred to as the "high-wage jobs tax credit".
40	60		B. The purpose of the high-wage jobs tax credit is
41	61		to provide an incentive for urban and rural businesses to
42	62		create and fill new high-wage jobs in New Mexico.
43		-	C. The high-wage jobs tax credit may be claimed
44		-	and allowed in an amount equal to eight and one-half percent
45		-	of the wages distributed to an eligible employee in a new
46		-	high-wage job but shall not exceed twelve thousand seven
47		-	hundred fifty dollars ($12,750) per job per qualifying
48		-	period. The high-wage jobs tax credit may be claimed by an
49		-	eligible employer for each new high-wage job performed for
50		-	the year in which the new high-wage job is created and for
51		-	consecutive qualifying periods. HB 368
52		-	Page 2
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	90	+	C. The high-wage jobs tax credit may be claimed and
	91	+	allowed in an amount equal to eight and one-half percent of the
	92	+	wages distributed to an eligible employee in a new high-wage
	93	+	job but shall not exceed twelve thousand seven hundred fifty
	94	+	dollars ($12,750) per job per qualifying period. The high-wage
	95	+	jobs tax credit may be claimed by an eligible employer for each
	96	+	new high-wage job performed for the year in which the new high-
	97	+	wage job is created and for consecutive qualifying periods.
78	98		D. To receive a high-wage jobs tax credit, a
79	99		taxpayer shall file an application for approval of the credit
80		-	with the department once per calendar year on forms and in
81		-	the manner prescribed by the department. The annual
82		-	application shall contain the certification required by
83		-	Subsection K of this section and shall contain all qualifying
84		-	periods that closed during the calendar year for which the
85		-	application is made. Any qualifying period that did not
86		-	close in the calendar year for which the application is made
87		-	shall be denied by the department. The application for a
88		-	calendar year shall be filed no later than December 31 of the
89		-	following calendar year. If a taxpayer fails to file the
90		-	annual application within the time limits provided in this
91		-	section, the application shall be denied by the department.
92		-	The department shall make a determination on the application
93		-	within one hundred eighty days of the date on which the
94		-	application was filed.
	100	+	with the department once per calendar year on forms and in the
	101	+	manner prescribed by the department. The annual application
	102	+	shall contain the certification required by Subsection K of
	103	+	this section and shall contain all qualifying periods that
	104	+	closed during the calendar year for which the application is
	105	+	made. Any qualifying period that did not close in the calendar
	106	+	year for which the application is made shall be denied by the
	107	+	department. The application for a calendar year shall be filed
	108	+	no later than December 31 of the following calendar year. If a
	109	+	taxpayer fails to file the annual application within the time
	110	+	limits provided in this section, the application shall be
	111	+	denied by the department. The department shall make a
	112	+	determination on the application within one hundred eighty days
	113	+	of the date on which the application was filed.
95	114		E. A new high-wage job shall not be eligible for a
96		-	credit pursuant to this section for the initial qualifying
97		-	period unless the eligible employer's total number of
98		-	employees with threshold jobs on the last day of the initial
99		-	qualifying period at the location at which the job is
100		-	performed or based is at least one more than the number of
101		-	threshold jobs on the day prior to the date the new high-wage
102		-	job was created. A new high-wage job shall not be eligible HB 368
103		-	Page 3
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129		-	for a credit pursuant to this section for a consecutive
130		-	qualifying period unless the total number of threshold jobs
131		-	at a location at which the job is performed or based on the
132		-	last day of that qualifying period is greater than or equal
133		-	to the number of threshold jobs at that same location on the
134		-	last day of the initial qualifying period for the new high-
135		-	wage job.
	143	+	credit pursuant to this section for the initial qualifying
	144	+	period unless the eligible employer's total number of employees
	145	+	with threshold jobs on the last day of the initial qualifying
	146	+	period at the location at which the job is performed or based
	147	+	is at least one more than the number of threshold jobs on the
	148	+	day prior to the date the new high-wage job was created. A new
	149	+	high-wage job shall not be eligible for a credit pursuant to
	150	+	this section for a consecutive qualifying period unless the
	151	+	total number of threshold jobs at a location at which the job
	152	+	is performed or based on the last day of that qualifying period
	153	+	is greater than or equal to the number of threshold jobs at
	154	+	that same location on the last day of the initial qualifying
	155	+	period for the new high-wage job.
136	156		F. If a consecutive qualifying period for a new
137	157		high-wage job does not meet the wage, occupancy and residency
138	158		requirements, then the qualifying period is ineligible.
139	159		G. Except as provided in Subsection H of this
140		-	section, a new high-wage job shall not be eligible for a
141		-	~~credit~~ pursuant to this section if:
142		-	(1) the new high-wage job is created due to
143		-	a business merger or acquisition or other change in business
	160	+	section, a new high-wage job shall not be eligible for a credit
	161	+	pursuant to this section if:
	162	+	(1) the new high-wage job is created due to a
	163	+	business merger or acquisition or other change in business
144	164		organization;
145		-	(2) the eligible employee was terminated
146		-	from employment in New Mexico by another employer involved in
147		-	the business merger or acquisition or other change in
148		-	business organization with the taxpayer; and
149		-	(3) the new high-wage job is performed by:
150		-	(a) the person who performed the job or
151		-	its functional equivalent prior to the business merger or
152		-	acquisition or other change in business organization; or
153		-	(b) a person replacing the person who HB 368
154		-	Page 4
	165	+	(2) the eligible employee was terminated from
	166	+	employment in New Mexico by another employer involved in the
	167	+	business merger or acquisition or other change in business
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	196	+	organization with the taxpayer; and
	197	+	(3) the new high-wage job is performed by:
	198	+	(a) the person who performed the job or
	199	+	its functional equivalent prior to the business merger or
	200	+	acquisition or other change in business organization; or
	201	+	(b) a person replacing the person who
180	202		performed the job or its functional equivalent prior to a
181	203		business merger or acquisition or other change in business
182	204		organization.
183	205		H. A new high-wage job that was created by another
184	206		employer and for which an application for the high-wage jobs
185	207		tax credit was received and is under review by the department
186	208		prior to the time of the business merger or acquisition or
187		-	other change in business organization shall remain eligible
188		-	for the high-wage jobs tax credit for the balance of the
189		-	consecutive qualifying periods. The new employer that
190		-	results from a business merger or acquisition or other change
191		-	in business organization may only claim the high-wage jobs
192		-	tax credit for the balance of the consecutive qualifying
193		-	periods for which the new high-wage job is otherwise
194		-	eligible.
	209	+	other change in business organization shall remain eligible for
	210	+	the high-wage jobs tax credit for the balance of the
	211	+	consecutive qualifying periods. The new employer that results
	212	+	from a business merger or acquisition or other change in
	213	+	business organization may only claim the high-wage jobs tax
	214	+	credit for the balance of the consecutive qualifying periods
	215	+	for which the new high-wage job is otherwise eligible.
195	216		I. A new high-wage job shall not be eligible for a
196		-	credit pursuant to this section if the job is created due to
197		-	an eligible employer entering into a contract or becoming a
	217	+	credit pursuant to this section if the job is created due to an
	218	+	eligible employer entering into a contract or becoming a
198	219		subcontractor to a contract with a governmental entity that
199	220		replaces one or more entities performing functionally
200		-	equivalent services for the governmental entity unless the
201		-	job is a new high-wage job that was not being performed by an
202		-	employee of the replaced entity.
203		-	J. A new high-wage job shall not be eligible for a
204		-	credit pursuant to this section if the eligible employer has HB 368
205		-	Page 5
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	249	+	equivalent services for the governmental entity unless the job
	250	+	is a new high-wage job that was not being performed by an
	251	+	employee of the replaced entity.
	252	+	J. A new high-wage job shall not be eligible for a
	253	+	credit pursuant to this section if the eligible employer has
231	254		more than one business location in New Mexico from which it
232		-	conducts business and the requirements of Subsection E of
233		-	~~this~~ section are satisfied solely by moving the job from one
	255	+	conducts business and the requirements of Subsection E of this
	256	+	section are satisfied solely by moving the job from one
234	257		business location of the eligible employer in New Mexico to
235	258		another business location of the eligible employer in New
236	259		Mexico.
237	260		K. With respect to each annual application for a
238	261		high-wage jobs tax credit, the employer shall certify and
239	262		include:
240		-	(1) the amount of wages paid to each
241		-	eligible employee in a new high-wage job during the
242		-	qualifying period;
	263	+	(1) the amount of wages paid to each eligible
	264	+	employee in a new high-wage job during the qualifying period;
243	265		(2) the number of weeks each position was
244	266		occupied during the qualifying period;
245	267		(3) whether the new high-wage job was in a
246	268		municipality with a population of sixty thousand or more or
247		-	with a population of less than sixty thousand according to
248		-	~~the~~ most recent federal decennial census and whether the job
249		-	~~was in~~ the unincorporated area of a county;
	269	+	with a population of less than sixty thousand according to the
	270	+	most recent federal decennial census and whether the job was in
	271	+	the unincorporated area of a county;
250	272		(4) which qualifying period the application
251	273		pertains to for each eligible employee;
252		-	(5) the total number of employees employed
253		-	by the employer at the job location on the day prior to the
254		-	qualifying period and on the last day of the qualifying
255		-	period; HB 368
256		-	Page 6
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	302	+	(5) the total number of employees employed by
	303	+	the employer at the job location on the day prior to the
	304	+	qualifying period and on the last day of the qualifying period;
282	305		(6) the total number of threshold jobs
283	306		performed or based at the eligible employer's location on the
284	307		day prior to the qualifying period and on the last day of the
285	308		qualifying period;
286	309		(7) for an eligible employer that has more
287		-	than one business location in New Mexico from which it
288		-	~~conducts~~ business, the total number of threshold jobs
289		-	~~performed or based~~ at each business location of the eligible
290		-	~~employer in New~~ Mexico on the day prior to the qualifying
291		-	~~period and on the~~ last day of the qualifying period;
292		-	(8) whether the eligible employer is
293		-	~~receiving~~ or is eligible to receive development training
294		-	~~program~~ assistance pursuant to Section 21-19-7 NMSA 1978;
	310	+	than one business location in New Mexico from which it conducts
	311	+	business, the total number of threshold jobs performed or based
	312	+	at each business location of the eligible employer in New
	313	+	Mexico on the day prior to the qualifying period and on the
	314	+	last day of the qualifying period;
	315	+	(8) whether the eligible employer is receiving
	316	+	or is eligible to receive development training program
	317	+	assistance pursuant to Section 21-19-7 NMSA 1978;
295	318		(9) whether the eligible employer has ceased
296	319		business operations at any of its business locations in New
297	320		Mexico; and
298	321		(10) whether the application is precluded by
299	322		Subsection O of this section.
300	323		L. Any person who willfully submits a false,
301	324		incorrect or fraudulent certification required pursuant to
302		-	Subsection K of this section shall be subject to all
303		-	applicable penalties under the Tax Administration Act, except
304		-	that the amount on which the penalty is based shall be the
305		-	total amount of credit requested on the application for
306		-	approval. HB 368
307		-	Page 7
	325	+	Subsection K of this section shall be subject to all applicable
	326	+	penalties under the Tax Administration Act, except that the
	327	+	.230496.1
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	355	+	amount on which the penalty is based shall be the total amount
	356	+	of credit requested on the application for approval.
333	357		M. Except as provided in Subsection N of this
334		-	section, an approved high-wage jobs tax credit shall be
335		-	~~claimed~~ against the taxpayer's modified combined tax
336		-	~~liability and~~ shall be filed with the return due immediately
337		-	~~following the~~ date of the credit approval. If the credit
338		-	~~exceeds the~~ taxpayer's modified combined tax liability, the
339		-	~~excess shall be~~ refunded to the taxpayer.
	358	+	section, an approved high-wage jobs tax credit shall be claimed
	359	+	against the taxpayer's modified combined tax liability and
	360	+	shall be filed with the return due immediately following the
	361	+	date of the credit approval. If the credit exceeds the
	362	+	taxpayer's modified combined tax liability, the excess shall be
	363	+	refunded to the taxpayer.
340	364		N. If the taxpayer ceases business operations in
341		-	New Mexico while an application for credit approval is
342		-	~~pending~~ or after an application for credit has been approved
343		-	~~for any~~ qualifying period for a new high-wage job, the
344		-	~~department shall~~ not grant an additional high-wage jobs tax
345		-	~~credit to that~~ taxpayer except as provided in Subsection O of
346		-	~~this section and~~ shall extinguish any amount of credit
347		-	~~approved for that~~ taxpayer that has not already been claimed
348		-	~~against the~~ taxpayer's modified combined tax liability.
	365	+	New Mexico while an application for credit approval is pending
	366	+	or after an application for credit has been approved for any
	367	+	qualifying period for a new high-wage job, the department shall
	368	+	not grant an additional high-wage jobs tax credit to that
	369	+	taxpayer except as provided in Subsection O of this section and
	370	+	shall extinguish any amount of credit approved for that
	371	+	taxpayer that has not already been claimed against the
	372	+	taxpayer's modified combined tax liability.
349	373		O. A taxpayer that has received a high-wage jobs
350	374		tax credit shall not submit a new application for the credit
351	375		for a minimum of two calendar years from the closing date of
352		-	the last qualifying period for which the taxpayer received
353		-	~~the~~ credit if the taxpayer lost eligibility to claim the
354		-	~~credit~~ from a previous application pursuant to Subsection N
355		-	~~of this~~ section.
356		-	P. ~~The economic development department and the~~
357		-	~~taxation and revenue department shall report to the HB 368~~
358		-	~~Page 8~~
	376	+	the last qualifying period for which the taxpayer received the
	377	+	credit if the taxpayer lost eligibility to claim the credit
	378	+	from a previous application pursuant to Subsection N of this
	379	+	section.
	380	+	.230496.1
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384		-	appropriate interim legislative committee each year the cost
385		-	of the high-wage jobs tax credit to the state and its impact
386		-	on company recruitment and job creation.
	408	+	P. The economic development department and the
	409	+	taxation and revenue department shall report to the appropriate
	410	+	interim legislative committee each year the cost of the high-
	411	+	wage jobs tax credit to the state and its impact on company
	412	+	recruitment and job creation.
387	413		Q. As used in this section:
388		-	(1) "benefits" means all remuneration for
389		-	work performed that is provided to an employee in whole or in
390		-	part by the employer, other than wages, including the
391		-	employer's contributions to insurance programs, health care,
392		-	medical, dental and vision plans, life insurance, employer
393		-	contributions to pensions, such as a 401(k), and employer-
394		-	provided services, such as child care, offered by an employer
395		-	to the employee;
396		-	(2) "consecutive qualifying period" means
397		-	each of the three qualifying periods successively following
398		-	the qualifying period in which the new high-wage job was
399		-	created;
	414	+	(1) "benefits" means all remuneration for work
	415	+	performed that is provided to an employee in whole or in part
	416	+	by the employer, other than wages, including the employer's
	417	+	contributions to insurance programs, health care, medical,
	418	+	dental and vision plans, life insurance, employer contributions
	419	+	to pensions, such as a 401(k), and employer-provided services,
	420	+	such as child care, offered by an employer to the employee;
	421	+	(2) "consecutive qualifying period" means each
	422	+	of the three qualifying periods successively following the
	423	+	qualifying period in which the new high-wage job was created;
400	424		(3) "department" means the taxation and
401	425		revenue department;
402	426		(4) "dependent" means "dependent" as defined
403	427		in 26 U.S.C. 152(a), as that section may be amended or
404	428		renumbered;
405	429		(5) "domicile" means the sole place where an
406		-	individual has a true, fixed, permanent home. It is the
407		-	place where the individual has a voluntary, fixed habitation
408		-	of self and family with the intention of making a permanent HB 368
409		-	Page 9
	430	+	individual has a true, fixed, permanent home. It is the place
	431	+	where the individual has a voluntary, fixed habitation of self
	432	+	and family with the intention of making a permanent home;
	433	+	.230496.1
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418	444		9
419	445		10
420	446		11
421	447		12
422	448		13
423	449		14
424	450		15
425	451		16
426	452		17
427	453		18
428	454		19
429	455		20
430	456		21
431	457		22
432	458		23
433	459		24
434	460		25
435		-	home;
436	461		(6) "eligible employee" means an individual
437	462		who is employed in New Mexico by an eligible employer and who
438	463		is a resident of New Mexico; "eligible employee" does not
439	464		include an individual who:
440	465		(a) is a dependent of the employer;
441	466		(b) if the employer is an estate or
442		-	trust, is a grantor, beneficiary or fiduciary of the estate
443		-	or trust or is a dependent of a grantor, beneficiary or
444		-	~~fiduciary~~ of the estate or trust;
445		-	(c) if the employer is a corporation,
446		-	is a dependent of an individual who owns, directly or
447		-	~~indirectly,~~ more than fifty percent in value of the
448		-	~~outstanding stock of~~ the corporation; or
	467	+	trust, is a grantor, beneficiary or fiduciary of the estate or
	468	+	trust or is a dependent of a grantor, beneficiary or fiduciary
	469	+	of the estate or trust;
	470	+	(c) if the employer is a corporation, is
	471	+	a dependent of an individual who owns, directly or indirectly,
	472	+	more than fifty percent in value of the outstanding stock of
	473	+	the corporation; or
449	474		(d) if the employer is an entity other
450	475		than a corporation, estate or trust, is a dependent of an
451	476		individual who owns, directly or indirectly, more than fifty
452	477		percent of the capital and profits interests in the entity;
453	478		(7) "eligible employer" means an employer
454	479		that, during the applicable qualifying period, would be
455		-	eligible for development training program assistance under
456		-	the fiscal year 2019 policies defining development training
457		-	program eligibility developed by the industrial training
458		-	board in accordance with Section 21-19-7 NMSA 1978;
459		-	(8) "modified combined tax liability" means HB 368
460		-	Page 10
	480	+	eligible for development training program assistance under the
	481	+	fiscal year 2019 policies defining development training program
	482	+	eligibility developed by the industrial training board in
	483	+	accordance with Section 21-19-7 NMSA 1978;
	484	+	(8) "modified combined tax liability" means
	485	+	the total liability for the reporting period for the gross
	486	+	.230496.1
	487	+	- 9 - underscored material = new
	488	+	[bracketed material] = delete
461	489		1
462	490		2
463	491		3
464	492		4
465	493		5
466	494		6
467	495		7
468	496		8
469	497		9
470	498		10
471	499		11
472	500		12
473	501		13
474	502		14
475	503		15
476	504		16
477	505		17
478	506		18
479	507		19
480	508		20
481	509		21
482	510		22
483	511		23
484	512		24
485	513		25
486		-	the total liability for the reporting period for the gross
487	514		receipts tax imposed by Section 7-9-4 NMSA 1978 together with
488	515		any tax collected at the same time and in the same manner as
489	516		the gross receipts tax, such as the compensating tax, the
490	517		withholding tax, the interstate telecommunications gross
491	518		receipts tax, the surcharges imposed by Section 63-9D-5 NMSA
492	519		1978 and the surcharge imposed by Section 63-9F-11 NMSA 1978,
493	520		minus the amount of any credit other than the high-wage jobs
494	521		tax credit applied against any or all of these taxes or
495		-	surcharges; but "modified combined tax liability" excludes
496		-	~~all~~ amounts collected with respect to local option gross
497		-	~~receipts~~ taxes;
	522	+	surcharges; but "modified combined tax liability" excludes all
	523	+	amounts collected with respect to local option gross receipts
	524	+	taxes;
498	525		(9) "new high-wage job" means a new job
499		-	created in New Mexico by an eligible employer on or after
500		-	~~July~~ 1, 2004 and prior to July 1, 2026 that is occupied for
501		-	~~at least~~ forty-four weeks of a qualifying period by an
502		-	~~eligible employee~~ who is paid wages calculated for the
503		-	~~qualifying period to be at~~ least:
	526	+	created in New Mexico by an eligible employer on or after July
	527	+	1, 2004 and prior to July 1, 2026 that is occupied for at least
	528	+	forty-four weeks of a qualifying period by an eligible employee
	529	+	who is paid wages calculated for the qualifying period to be at
	530	+	least:
504	531		(a) for a new high-wage job created
505		-	prior to July 1, 2015: 1) forty thousand dollars ($40,000)
506		-	if the job is performed or based in or within ten miles of
507		-	the external boundaries of a municipality with a population
508		-	of sixty thousand or more according to the most recent
509		-	federal decennial census or in a class H county; and 2)
510		-	twenty-eight thousand dollars ($28,000) if the job is HB 368
511		-	Page 11
	532	+	prior to July 1, 2015: 1) forty thousand dollars ($40,000) if
	533	+	the job is performed or based in or within ten miles of the
	534	+	external boundaries of a municipality with a population of
	535	+	sixty thousand or more according to the most recent federal
	536	+	decennial census or in a class H county; and 2) twenty-eight
	537	+	thousand dollars ($28,000) if the job is performed or based in
	538	+	a municipality with a population of less than sixty thousand
	539	+	.230496.1
	540	+	- 10 - underscored material = new
	541	+	[bracketed material] = delete
512	542		1
513	543		2
514	544		3
515	545		4
516	546		5
517	547		6
518	548		7
519	549		8
520	550		9
521	551		10
522	552		11
523	553		12
524	554		13
525	555		14
526	556		15
527	557		16
528	558		17
529	559		18
530	560		19
531	561		20
532	562		21
533	563		22
534	564		23
535	565		24
536	566		25
537		-	performed or based in a municipality with a population of
538		-	less than sixty thousand according to the most recent federal
539		-	decennial census or in the unincorporated area, that is not
540		-	within ten miles of the external boundaries of a municipality
541		-	with a population of sixty thousand or more, of a county
542		-	other than a class H county; and
	567	+	according to the most recent federal decennial census or in the
	568	+	unincorporated area, that is not within ten miles of the
	569	+	external boundaries of a municipality with a population of
	570	+	sixty thousand or more, of a county other than a class H
	571	+	county; and
543	572		(b) for a new high-wage job created on
544		-	or after July 1, 2015: 1) sixty thousand dollars ($60,000)
545		-	if the job is performed or based in or within ten miles of
546		-	the external boundaries of a municipality with a population
547		-	of sixty thousand or more according to the most recent
548		-	federal decennial census or in a class H county; and 2) forty
549		-	thousand dollars ($40,000) if the job is performed or based
550		-	in a municipality with a population of less than sixty
551		-	thousand according to the most recent federal decennial
552		-	census or in the unincorporated area, that is not within ten
553		-	miles of the external boundaries of a municipality with a
554		-	population of sixty thousand or more, of a county other than
555		-	a class H county;
556		-	(10) "new job" means a job that is occupied
557		-	by an employee who has not been employed in New Mexico by the
558		-	eligible employer in the three years prior to the date of
559		-	hire;
	573	+	or after July 1, 2015: 1) sixty thousand dollars ($60,000) if
	574	+	the job is performed or based in or within ten miles of the
	575	+	external boundaries of a municipality with a population of
	576	+	sixty thousand or more according to the most recent federal
	577	+	decennial census or in a class H county; and 2) forty thousand
	578	+	dollars ($40,000) if the job is performed or based in a
	579	+	municipality with a population of less than sixty thousand
	580	+	according to the most recent federal decennial census or in the
	581	+	unincorporated area, that is not within ten miles of the
	582	+	external boundaries of a municipality with a population of
	583	+	sixty thousand or more, of a county other than a class H
	584	+	county;
	585	+	(10) "new job" means a job that is occupied by
	586	+	an employee who has not been employed in New Mexico by the
	587	+	eligible employer in the three years prior to the date of hire;
560	588		(11) "qualifying period" means the period of
561		-	twelve months beginning on the day an eligible employee HB 368
562		-	Page 12
	589	+	twelve months beginning on the day an eligible employee begins
	590	+	working in a new high-wage job or the period of twelve months
	591	+	beginning on the anniversary of the day an eligible employee
	592	+	.230496.1
	593	+	- 11 - underscored material = new
	594	+	[bracketed material] = delete
563	595		1
564	596		2
565	597		3
566	598		4
567	599		5
568	600		6
569	601		7
570	602		8
571	603		9
572	604		10
573	605		11
574	606		12
575	607		13
576	608		14
577	609		15
578	610		16
579	611		17
580	612		18
581	613		19
582	614		20
583	615		21
584	616		22
585	617		23
586	618		24
587	619		25
588		-	begins working in a new high-wage job or the period of twelve
589		-	months beginning on the anniversary of the day an eligible
590		-	employee began working in a new high-wage job;
	620	+	began working in a new high-wage job;
591	621		(12) "resident" means a natural person whose
592	622		domicile is in New Mexico at the time of hire or within one
593	623		hundred eighty days of the date of hire;
594	624		(13) "threshold job" means a job that:
595	625		(a) is occupied for at least forty-four
596		-	weeks of the first fifty-two weeks of employment by an
597		-	eligible employee; provided that the fifty-two-week period
598		-	begins on the day the eligible employee occupies the job; and
	626	+	weeks of [a calendar year ] the first fifty-two weeks of
	627	+	employment by an eligible employee; provided that the fifty-
	628	+	two-week period begins on the day the eligible employee
	629	+	occupies the job; and [that]
599	630		(b) meets the wage requirements for a
600	631		"new high-wage job"; and
601		-	(14) "wages" means all compensation paid by
602		-	an eligible employer to an eligible employee through the
	632	+	(14) "wages" means all compensation paid by an
	633	+	eligible employer to an eligible employee through the
603	634		employer's payroll system, including those wages that the
604	635		employee elects to defer or redirect or the employee's
605		-	contribution to a 401(k) or cafeteria plan program, but
606		-	~~"wages"~~ does not include benefits or the employer's share of
607		-	~~payroll~~ taxes, social security or medicare contributions,
608		-	~~federal or~~ state unemployment insurance contributions or
609		-	~~workers'~~ compensation."
	636	+	contribution to a 401(k) or cafeteria plan program, but "wages"
	637	+	does not include benefits or the employer's share of payroll
	638	+	taxes, social security or medicare contributions, federal or
	639	+	state unemployment insurance contributions or workers'
	640	+	compensation."
610	641		SECTION 2. APPLICABILITY.--The provisions of this act
611	642		apply to applications for a high-wage jobs tax credit received
612		-	by the taxation and revenue department on or after the HB 368
613		-	Page 13
614		-	1
615		-	2
616		-	3
617		-	4
618		-	5
619		-	6
620		-	7
621		-	8
622		-	9
623		-	10
624		-	11
625		-	12
626		-	13
627		-	14
628		-	15
629		-	16
630		-	17
631		-	18
632		-	19
633		-	20
634		-	21
635		-	22
636		-	23
637		-	24
638		-	25
	643	+	by the taxation and revenue department on or after the
639	644		effective date of this act.
	645	+	.230496.1
	646	+	- 12 -