The state of New Mexico and Sandoval County, along with its communities, offer competitive and unique incentives to job creators to help reduce the overall cost of doing business. Select the sections below to discover economic development incentives and tax credits available.

Visit the New Mexico Economic Development Department website to learn about state incentives.

Local Incentives

Sandoval County Economic Development Fund
Similar to LEDA, the Sandoval County Economic Development fund is available to offset costs in needed infrastructure or other expenses to help businesses locate here or expand.

The County and the County’s Economic Development Department has designed and implement a systematic, transparent approach to prioritizing projects that meet the over-arching goals of the County for financial evaluation and structuring. These provide guidance for funding on project impact qualifications, application review criteria, and concentration factors.

Projects are considered based on the following goals:

• “County” Impact and Support
• Impact to unincorporated or rural areas of the County
• Increased Wages and Job Creation
• Wealth Creation and Capital Investment
• Environmentally Sustainable Outcomes
• Financial Soundness and Readiness to Proceed.

Industrial Revenue Bond (IRB)

Sandoval County is willing to issue IRBs up to $50 billion.

Significant real and personal property tax abatement and compensating tax exemptions can occur through the use of an Industrial Revenue Bond (IRB). An IRB is a loan from the bond purchaser to a company where the loan proceeds and repayment flows through a governmental issuer. Instead of purchasing a facility directly, companies can enter into a lease with the issuer, provided the company will lease the facility from the issuer and at end of the lease, purchase the facility from the issuer for a nominal amount.

IRBs can also be used when a developer is involved. A separate series of bonds are issued to finance the developer’s real estate and building costs and the tax savings of the IRB can flow through to the ultimate user through a sublease.

The benefit of the remaining property tax exemptions can be passed on to the new owner or flow through a lease in the event of a sale or lease to a new user under certain qualifying conditions. City Council or County Commission must vote to induce an IRB, and the community does not lend its credit to an IRB. The company must secure its own purchaser of IRBs or the company can purchase its own IRB.

Gross Receipts Investment Policy (GRIP)

A developer/retailer pays for the cost of public infrastructure improvements (roads, drainage, water and wastewater lines, etc.) for a project, and in return the city refunds a percentage of the yearly applicable gross receipts tax revenues it receives that are directly attributed to the retail sales of the project/business back to the developer up to a maximum number of years; or the city may reimburse impact fees where the reimbursement thereof is instrumental in bringing the retail or targeted commercial businesses to the city.

Tax Increment Development District (TIDD)
A TIDD issues bonds to finance public infrastructure improvements (streets, water, wastewater, drainage). The TIDD bonds are secured by a dedication of certain municipal, county, and/or state-shared gross receipts tax that are generated in the TIDD. The length of time and amount of gross receipts tax dedication that occurs varies by individual TIDDs.
Public Improvement District (PID)
A PID provides financing based on levying property taxes on land within a PID, imposing special levies based on benefit to property, front footage, acreage, cost of improvements (or other factors apart from assessed valuation), or by providing for use charges of improvements or revenue-producing projects or facilities. PID taxes, levies and charges may be pledged to pay debt service on bonds issued by a PID. PID bonds are obligations solely of the PID issuing the bonds.

PIDs are authorized to finance various infrastructure and improvements (water and sewer systems, streets, gas and telecommunications systems, parks, public buildings, libraries, school facilities, equipment) and related costs of operation and administration.