RPD-41386: RPD-41386 Technology Jobs and Research and Development Tax Credit Claim Form (2024)
New Mexico · New Mexico TRD · Used for tax years 2024
Form RPD-41386 is used to claim an approved New Mexico Technology Jobs and Research and Development Tax Credit. It reports the credit available, amounts previously claimed, the amount applied to the attached tax return, and any additional credit requested as a refund.
Who files this form
Use Form RPD-41386 to claim an approved New Mexico Technology Jobs and Research and Development Tax Credit with your tax return.
Before you claim the credit, Form RPD-41385, the credit application, must be completed and approved. Enter the name of the business whose credit was approved as the holder's name.
- The basic credit can be applied against compensating tax, gross receipts tax excluding local option gross receipts tax, and wage or non-wage withholding tax.
- The additional credit can be applied against tax on PIT-1, CIT-1, FID-1, and S-Corp returns. Qualified research and development small businesses may qualify for a refund.
What you'll need
Have these documents and details ready:
- Your credit approval documentation, including the assigned credit number, approval date, and approved amount.
- Records of credit amounts claimed in earlier reporting periods.
- Your New Mexico tax return and the tax due for the reporting period.
- Completed Form RPD-41386, including Schedule A.
- The applicable tax credit Schedule CR if claiming the credit against income tax.
- The holder's name, mailing address, NMBTIN, SSN or ITIN or FEIN, phone number, and email address.
Form RPD-41385 must already have been completed and approved before you submit this claim.
How to file
- Enter the holder's information and the beginning and ending dates of the claim's reporting period.
- Enter the New Mexico tax due. For an income tax return, use net New Mexico income tax before any credits.
- Complete a separate row in Schedule A for each approved credit. Enter its approval details, amounts previously claimed, unused balance, and amount applied to the attached return. Total column (f) and enter that total on line 3. The credit used against tax cannot exceed the tax otherwise due.
- If approved as a qualified research and development small business, enter the refundable portion of the additional credit on line 4, as applicable.
- Sign and date the form. Attach it, including Schedule A, to your New Mexico tax return. For an income tax claim, also attach the applicable Schedule CR.
Online: Sign in to Taxpayer Access Point (TAP) and follow the prompts to attach this form when filing your return.
By mail: Attach the form to your tax return and send both to the address specified on that return.
For help claiming an approved credit, email BusinessCredit.mgr@tax.nm.gov or call (505) 827-0792.
Common mistakes
- Leaving out attachments. The form warns that failing to attach Form RPD-41386 and other required attachments to your New Mexico tax return will result in denial of the credit. Include Schedule A and, for income tax claims, the applicable Schedule CR.
- Claiming more than the tax due on line 3. Do not enter more than net New Mexico tax due. Any qualifying refundable portion belongs on line 4.
- Including fully used credits on Schedule A. Do not include credits that have already been claimed in full.
- Claiming before approval. Form RPD-41385 must be completed and approved before you claim the credit or submit Form RPD-41386.
Questions people ask
Which returns can I use for the basic credit?
The basic credit can be applied against TRD-41412, Compensating Tax Return; TRD-41413, Gross Receipts Tax Return; TRD-41409, Non-Wage Withholding Tax Return; and TRD-41414, Wage Withholding Tax Return. It cannot offset local option gross receipts tax.
Can I carry unused credit forward?
Approved basic credit may be carried forward for up to three years from the date of the original claim. Approved additional credit that is neither used against income tax nor refunded may also be carried forward for up to three years from the date of the original claim.
Can the additional credit be refunded?
Qualified research and development small businesses may receive a refund of excess additional credit based on total qualified expenditures for the tax year of the claim:
- Less than $3,000,000: all excess additional credit is refundable.
- At least $3,000,000 but less than $4,000,000: two-thirds is refundable.
- At least $4,000,000 and no more than $5,000,000: one-third is refundable.
Can a pass-through entity distribute the additional credit?
Yes. An approved pass-through entity may pass the additional credit to its owners, partners, or members using Form RPD-41368, Notice of Distribution of Technology Jobs and Research and Development Tax Credit.
How is the additional credit divided if married individuals file separate returns?
Each spouse may claim only one-half of the additional credit.