Governor lays out plan to stimulate business community
Posted at: 01/28/2013 12:40 PM
| Updated at: 01/28/2013 1:24 PM
By: KOB.com staff
Governor Susana Martinez outlined her plan to help New Mexico small businesses hire and train new workers Monday in a speech to local builders and business owners.
Governor Martinez detailed her plans for a new, $1000 tax credit to businesses for each job created, as as well as a $4.75 million increase to the state’s existing Job Training Incentive Program or JTIP, which covers part of an employee’s salary while they are receiving training from their employer.
The tax credit would be available to businesses that employ fewer than 100 workers and hire a new employee between January 1, 2013 and December 31, 2014.
The job must be maintained for at least two years in order for the business to qualify for the credit.
In a news release, the governor said JTIP has been one of New Mexico’s most successful economic development tools, encouraging growth by offsetting some of the costs associated with hiring and training new employees. New Mexico’s JTIP is recognized as a model program across the country.
Over the last 40 years since the project’s inception, JTIP has helped more than 1,100 local businesses and has helped create more than 42,000 jobs. JTIP funds classroom and on-the-job training for newly-created jobs in expanding or relocating businesses for up to six months.
The program reimburses 40-75 percent of employee wages. Custom training at a New Mexico public educational institution may also be covered. Eligibility for JTIP funds depends on the company’s business, the role of the newly-created jobs in that business, and the trainees themselves.
Three categories of businesses are eligible for consideration:
• Companies that manufacture or produce a product in New Mexico;
• Non-retail service companies that export a substantial percentage of services out of state (50 percent or more of revenues and/or customer base). Customer support centers and product testing laboratories are two examples of businesses that have qualified in this category;
• Certain green industries.
Martinez made her remarks today at a luncheon of more than 600 of the metro area’s top business owners and leaders. The luncheon was hosted by the New Mexico Chapter of NAIOP, the commercial real estate development association.