In this one-on-one interview with EDD’s JTIP Manager Patrick Gannon, he discusses the program’s success and its impact on New Mexicans.
Patrick outlines the five main outcomes that demonstrate how JTIP serves as a powerful tool for economic development and why employers should care about the program:
- Cost Savings: JTIP helps offset the cost of training new employees, which can be a major expense for growing businesses.
- Workforce Development: It enables companies to build a skilled workforce tailored to their specific needs.
- Tax Incentives: Participation may open eligibility for additional tax credits, such as the High Wage Job and Rural Job tax credits.
- Custom Training: Employers can receive reimbursement for customized training provided by New Mexico public educational institutions.
- Support for Small Businesses: Additional incentives are available for companies using independent HR support services to improve recruitment and retention strategies.
The following is the full interview, condensed for clarity and brevity.
What is JTIP and what does it mean to businesses and communities in NM?
JTIP has been part of our state statutes since 1972, providing long-term legislative support to help businesses grow their footprint here in New Mexico.
The program offsets the cost of training new employees in newly created jobs within economic base industries, primarily manufacturing and non-retail service companies that generate at least 50% of the revenue from a customer base out of state, like software development companies or engineering firms.
JTIP helps both early-stage tech companies spun out of our labs and universities and established firms relocating or expanding to New Mexico.
What types of businesses/jobs are you seeing a lot of these days?
We’ve seen strong growth in alternative and renewable energy — companies like Pacific Fusion, Kairos Power, Ebon Solar — as well as in aerospace. These sectors are expanding rapidly, and JTIP is supporting their efforts to build and hire in New Mexico. It’s exciting to see these target industries grow and thrive here.
What do you enjoy most about working with JTIP?
I’m really excited by the diversity of companies we work with — from those developing cutting-edge technologies like quantum computing and AI to small, homegrown operations.
Helping small busi
nesses hire one or two people in rural communities is especially meaningful. Those jobs create real opportunities at the local level. Larger employers, like Boeing, are also creating more jobs so recent grads can New Mexico and not have to exit the state for employment. Together, these opportunities strengthen our economy statewide.
What recent trends have you seen?
We’ve seen an uptick in both participation and job quality. In FY24, JTIP awarded about $28 million to 83 companies, up from I think $23 million and about 61 companies the year before. In just the first quarter of FY26, we’ve already supported 28 companies with $4.4 million, and another $4.6 million has been awarded in October.
The average wage of JTIP-supported jobs is $26.83/hour, or nearly $60,000 per year. Interest in the program keeps climbing thanks to our regional reps, local partners, and companies spreading the word about their success.
A key focus in economic development right now is talent attraction. More employers are bringing in skilled workers from out of state, helping grow the next generation of New Mexico’s workforce. JTIP recently updated its policy to allow reimbursement for companies hiring high-wage employees who have lived in the state less than a year, ensuring we can support both new and long-time New Mexicans. This change strengthens our ability to attract industry and maintain a skilled workforce.
What updates have been made recently to JTIP? In addition to the increase in approved funding there’s been an increased usage of the Step Up program, which funds training for current employees, and in internships, can you talk about that too?
We’ve made several successfu
l policy updates this year. First, we enhanced the Step Up program by increasing the funding available for training current employees. Second, we expanded support for internships, and third, we increased reimbursement rates for out-of-state recruitment.
As of July 1, reimbursement rates rose by 10% across the board — from 30% to 40% in urban areas, 40% to 50% in rural areas, and 50% to 60% in frontier areas. This adjustment gives companies more flexibility to attract high-wage talent, including new residents who’ve lived in New Mexico for less than a year. While JTIP continues to prioritize jobs for New Mexicans, this change recognizes that some industries, like engineering, face specialized workforce shortages.
We also updated our internship policy to make it more practical for employers and students. Previously, only students in their final semester qualified. Now, companies can hire interns during their final academic year, allowing up to 1,040 training hours (up from 640). This gives employers more time to train students and increases the likelihood of permanent employment after graduation.
We’ve already seen a steady rise in both internship participation and Step Up usage as a result.
What brought you to the world of economic development?
I spent many years in hospitality, mostly fine dining in Santa Fe and Albuquerque. After having kids, I wanted more stability, so I went back to school at age 36 and finished a business degree with a concentration in marketing in just two and a half years. That’s when I discovered economic and workforce development, a field where I felt I could really make a difference.
My first job out of college was with EDD as a regional representative, and I’ve been hooked ever since. I’ve always been customer-focused: listening, understanding, and finding solutions that get results.
Tell us something about yourself.
I love to cook and do most of the cooking for my wife and me. We have two grown kids in successful careers. My wife and I take short weekend getaways to Northern New Mexico, Southern Colorado, and the Four Corners region, enjoying the outdoors and going rock hounding. Our drought-tolerant garden, developed over our 36 years of marriage, is full of the rocks and stones we’ve found. Our garden is a living monument to our shared journey, our curiosity, and our reverence for nature.
