Why manufacture in New Mexico?
New Mexico offers strategic proximity to major clean‑energy demand centers in the Southwest, strong transmission build‑out, competitive industrial sites, and a growing clean‑energy workforce pipeline. See the NM Renewable Energy Transmission Authority’s study and contact NM RETA for more info and siting support:
Manufacturers can stack state incentives like LEDA and the Advanced Energy Equipment Income Tax Credit with federal IRA manufacturing credits, making the state highly attractive for batteries, solar, and component production. Contact the NM Partnership for siting support.
Key advantages for manufacturers:
- Access to Southwest markets (Arizona, Texas, California) within 1-day trucking
- Lower real estate and operating costs vs. California and Colorado
- Established industrial sites with rail, power, and water infrastructure
- Proximity to Sandia and Los Alamos National Labs for R&D partnerships
- Shovel-ready sites available through BorderPlex and strategic site readiness program (SB 169/170)
Finding Your Site
New Mexico offers several pathways for manufacturers to identify and develop sites:
- State Trust Lands: Contact State Land Office for long-term leases on 9M acres (solar, wind, and geothermal leases available too)
- Strategic Economic Development Sites: SB 169 and 170 site readiness and utility pre-deployment – contact EDD
- BorderPlex Region: Shovel-ready sites in southern NM with binational logistics – https://www.nmborderplex.com/
- Industrial Parks: Contact local economic development offices and NM Partnership for inventory
For site selection support, contact EDD Business Development at info@edd.nm.gov or (505) 827-0300.
Incentives Snapshot
Advanced Energy Equipment Income Tax Credit – 20% credit on qualified equipment costs, up to 25 million dollars per project, for facilities manufacturing eligible advanced‑energy components.
IRA Sections 45X and 48C – Section 45X provides production‑based credits for domestic manufacturing of specified clean‑energy components, while Section 48C offers a competitive investment tax credit for qualifying advanced energy projects in designated census tracts.
LEDA and other Economic Development Department (EDD) tools – The Local Economic Development Act (LEDA) and EDD’s suite of tools provide project‑specific support for job creation, infrastructure, and closing funds for strategic manufacturing investments ranging from $ hundreds of thousands to $ hundreds of millions depending on the project and scale of economic impact. Approximately $1M-$10M for smaller projects and $10M-$100M for large transformational projects), subject to negotiated award terms.
Manufacturers can combine federal and state incentives for significant capital cost reduction. Here are typical stacking scenarios:
| Project type | Typical federal tools (examples) | Typical state tools (examples) | Illustrative Federal Incentive Value (% of eligible project cost)” | Illustrative State/Local Incentive Value (% of project cost) |
| Battery cell/pack plant | 45X manufacturing credit; 48C (if awarded) | Advanced Energy Equipment credit; LEDA; C-PACE (if site-eligible) |
Federal 25-35% Combined planning range 35-55% |
Combined planning range 35-55% |
| Solar module assembly | 45X for modules and components; 48C option | Advanced Energy Equipment credit; LEDA; local incentives | Federal 20-30% |
State/Local 8-20% Combined planning range 28-50% |
| Component machining/casting | 48C for qualifying projects; standard ITC where relevant | Advanced Energy Equipment credit; LEDA; workforce grants via DWS | Federal 10-25% |
State/Local 5-15% Combined planning range 15-40%. |
Ranges are planning estimates only; final value depends on award decisions, tax-credit eligibility, wage/apprenticeship compliance, and monetization structure.
Stacking opportunity: A battery manufacturing facility could combine the Advanced Energy Equipment Tax Credit (20% up to $25M state
credit) + Section 45X production credits (federal) + LEDA infrastructure/training support, potentially covering 35-55% of total project costs.
New Mexico Federal and State Incentive Stacking
Overview
New Mexico’s climate‑ready workforce strategy focuses on training at least 2,000 workers for clean energy and infrastructure careers by 2026, with coordinated support across the Department of Workforce Solutions, Economic Development Department, and other agencies.
Employers can access grants, apprenticeships, displaced‑worker programs, and job‑training incentives to staff projects ranging from utility‑scale solar to building electrification and manufacturing.
IRA Sections 45X and 48C – Section 45X provides production‑based credits for domestic manufacturing of specified clean‑energy components, while Section 48C offers a competitive investment tax credit for qualifying advanced energy projects in designated census tracts. As noted before, for a battery manufacturing facility could combine the Advanced Energy Equipment Tax Credit for 20% up to $25M state credit + Section 45X production credits (federal) + LEDA infrastructure/training support, potentially covering 35-55% of total project costs. To explore your own custom combinations, reference the New Mexico Federal and State Incentive Stacking sheet, which will be updated as incentives and programs change.
Key Programs for Employers
New Mexico offers several workforce programs for manufacturers. The most relevant programs for your project depend on your workforce needs:
- For hiring 20+ new production workers: → JTIP (Job Training Incentive Program)
- For long-term apprenticeship programs: → Apprenticeships section
- For hiring experienced coal sector workers: → Energy Transition Act Displaced Worker Assistance
- For rural/frontline community hiring: → Energy Transition Workforce Equity Project
- For multi-year workforce planning: → Climate-Ready Workforce Initiative
Energy Transition Workforce Equity Project
Purpose: The Energy Transition Workforce Equity Project supports the New Mexico Department of Workforce Solutions in developing and expanding a qualified clean energy workforce, with a focus on underrepresented and frontline communities.
Employer use case: “Launching a solar, wind, or transmission project in a rural or frontline community and need a diverse local workforce pipeline?” This project helps align employers with training providers, community‑based organizations, and wraparound supports.
How to partner: Employers can connect through the Department of Workforce Solutions climate and energy workforce page at Department of Workforce Solutions – climate and workforce.
Energy Transition Act Displaced Worker Assistance
Purpose: Under the Energy Transition Act Displaced Worker Assistance Fund, the Department of Workforce Solutions provides payments and services to workers laid off from coal‑related facilities such as the San Juan Generating Station and associated mine, along with broader transition support in affected communities.
Employer use case: “Looking to hire experienced operators, technicians, or maintenance staff from coal plants or mines for new clean energy or manufacturing facilities?” Employers can tap into a pool of skilled workers receiving transition assistance.
How to partner: Learn more and coordinate hiring and training through the Department of Workforce Solutions Energy Transition Act page at Energy Transition Act – Department of Workforce Solutions.
Apprenticeships and “Earn‑While‑You‑Learn” Pathways
Purpose: The Department of Workforce Solutions and partner institutions such as Central New Mexico Community College support registered apprenticeships and pre‑apprenticeships that prepare electricians, lineworkers, HVAC technicians, and other trades needed for clean energy projects.
Employer use case: “Need journeyman‑track electricians, solar installers, or industrial maintenance technicians for a 100‑megawatt solar project or a new factory?” Employers can sponsor apprentices and align curriculum with project needs.
How to partner: Employers can start via the Department of Workforce Solutions apprenticeship resources and partner college apprenticeship hubs such as Apprenticeships – Central New Mexico Community College.
Climate‑Ready Workforce Initiative (Executive Order 2024‑152)
Purpose: The Governor’s Infrastructure and Climate‑Ready Workforce Executive Order creates a cross‑agency framework to train 2,000 climate‑ready workers by 2026, emphasizing good‑paying jobs, safety, and equity for rural and underserved communities.
Employer use case: “Planning a multi‑year portfolio of renewable, grid, or resilience projects and need a long‑term workforce strategy?” The initiative helps coordinate training pathways, credentials, and support services (such as childcare and transportation) around employers’ needs.
How to partner: Employers can engage through the Department of Workforce Solutions climate‑ready workforce pages at Infrastructure and Climate‑Ready Workforce – Department of Workforce Solutions, which will include contacts for employer partnerships and sector strategies.
Job Training Incentive Program (JTIP)
Purpose: The Job Training Incentive Program, administered by the Economic Development Department, reimburses eligible companies expanding or relocating in New Mexico for 40 to 75 percent of wages and training costs for new employees over a training period of up to six months.
Employer use case: “Opening a clean energy manufacturing plant or service center and hiring 50 new production, technician, or engineering staff?” The Job Training Incentive Program can significantly reduce initial payroll and training costs.
How to partner: Employers can learn about eligibility and application steps through the Economic Development Department’s Job Training Incentive Program resources at Job Training Incentive Program – New Mexico Economic Development Department.
Your Workforce
New Mexico is building a climate‑ready workforce and offers employers practical tools to recruit, train, and retain workers for clean energy and infrastructure projects.
New Mexico’s clean‑energy workforce and ETA/Climate‑Ready Workforce efforts support training in advanced manufacturing, construction, and operations, often in partnership with community colleges and national labs.
For sites, manufacturers can work with the State Land Office, Economic Development Department, and local governments to evaluate state trust lands, industrial parks, and infrastructure‑ready properties close to transmission, rail, and highways.