NEW MEXICO ECONOMIC
DEVELOPMENT DEPARTMENT

Intelligent Manufacturing

A report released by Ernst & Young in January 2014, ranked New Mexico first in the west for manufacturers with the lowest effective tax rate for manufacturing. 

New Mexico is home to 3 national research facilities and 3 nationally-recognized research universities. The state is ranked first in non-industry investment in research and development, second in high-tech jobs, and seventh in patents, providing unparalleled capacity for research collaboration and technology commercialization in many areas that contribute to advanced manufacturing (2017 State New Economy Index). New Mexico has many companies utilizing technologies spun out of these institutions. Education and research opportunities at these facilities contribute graduates in many fields including engineering, optics, nanotechnologies, physics, and manufacturing hardware and software development.

Research and development capacity, combined with plentiful natural resources, an excellent climate, low cost of doing business and aggressive job creation incentives equate to a growing manufacturing sector when other states are experiencing declines.  The New Mexico Small Business Assistance Program allows a business to use a scientist, engineer, or facility to test a product or develop a prototype.

Intel, Honeywell, General Mills, Jabil, Medlin Ramps, and Tempur-Pedic all have manufacturing facilities in New Mexico.

Consumables used in the manufacturing of a product, including electricity and natural gas, are exempt from gross receipts tax.