RPD-41385: RPD-41385 Application for Technology jobs and research and development tax credit (Revision 2026-07)
New Mexico · New Mexico TRD · Used for tax years 2024, 2025, 2026
Form RPD-41385 is an application for New Mexico's Technology Jobs and Research and Development Tax Credit. It reports qualified research activities, wage and non-wage expenditures, and the credit amounts requested.
Who files this form
Taxpayers seeking approval for this credit use Form RPD-41385. You may qualify for the basic credit if you conduct qualified research at a qualified facility in New Mexico and make qualified expenditures.
To qualify for the additional credit, you must:
- Increase annual payroll expense at the qualified facility by at least $75,000 over base payroll expense.
- Not have used that increase previously to qualify for the additional credit.
- Have at least a $75,000 payroll increase for every $1,000,000 in qualified expenditures claimed in the same claim.
A qualified facility does not include a facility operated by a taxpayer for the United States or one of its agencies, departments, or instrumentalities.
What you'll need
Prepare these forms and attachments:
- Completed RPD-41385, including the required signature.
- TRD-31121 Project Statement and Schedules A and B, required of all applicants under the application checklist. Include project numbers in the descriptions if the claimed expenditures are tied to project numbers.
- Allocation methodology statement, if you claim an allocated percentage of expenditures. Explain the cost accounting methodology used.
- TRD-31121 Schedule C, if you claim the additional credit.
- ACD-31102, Tax Information Authorization Tax Disclosure, if your contact person is not the taxpayer, a corporate officer, partner, or fiduciary previously identified to the Department, or an authorized individual representative with authority to perform all acts the taxpayer can perform.
Have your FEIN, SSN, or ITIN; New Mexico Business Tax Identification Number (NMBTIN); addresses; and contact information ready. The schedules also request expenditure details, employee information, W-2 Box 1 wages, and allocation percentages. Schedule C requests wages for both the claimed year and the prior year.
The Department may request additional documentation.
How to file
Complete the identifying information, enter the calendar year of the expenditures, describe the research, and answer the credit certification questions. Calculate the credit using the totals from TRD-31121 and check the attachments you are submitting.
Have the application signed by the taxpayer or an authorized signer described in Section 5. A pen signature or electronic signature is allowed.
Submit the completed application and all required documents through one of these methods:
- Online: Use the Taxpayer Access Point (TAP) at https://tap.state.nm.us. You must have an account to apply through TAP.
- Email: trd-businesscredit@tax.nm.gov
- Mail:
Taxation and Revenue Department
Attn: ACD Business Credit
P.O. Box 8575
Albuquerque, New Mexico 87198-8575
Common mistakes
- Sending an incomplete application package. The printed reminder says to submit all required documentation with RPD-41385. The Department may request more documentation to verify eligibility.
- Using inconsistent taxpayer information. Make sure the identifying information on the TRD-31121 Project Statement and schedules matches RPD-41385.
- Typing data into formula cells. Do not enter data in Schedule A's row 13 or column F, Schedule B's row 13 or column E, or Schedule C's row 13.
- Leaving added rows out of totals. If you go beyond row 1000 in Schedule A or row 500 in Schedules B or C, extend the total formulas to include the additional rows.
- Trying to apply through TAP without an account. The submission note says an account is required.
Questions people ask
How much is the basic credit?
The basic credit is 5% of qualified expenditures. The additional credit is also 5% of qualified expenditures if you meet its requirements.
Does a rural facility qualify for a larger credit?
The basic and additional credits for which you otherwise qualify are doubled if the qualified expenditures were incurred for a qualified facility in a rural area. Mark the rural-area box on line 11 if it applies.
Is there a limit on wages claimed for each employee?
Yes. The annual wage amount claimed may not exceed $500,000 per employee. Schedule B limits qualified research and development wage expenditures to that amount per employee.
How long will the Department take to review my application?
The Department will make a determination within 120 days after receiving the completed application. If approved, you will receive a document granting the tax credit.
Who can help with questions or application status?
Contact the Business Credit unit at trd-businesscredit@tax.nm.gov or (505) 795-1735.