One of the benefits of being an Angel is the State of New Mexico Angel Investment Credit. In 2015, we were able to extend the benefits of the tax credit. A summary of the bill can be found below and the full bill text is at the bottom of the page.
This tax credit allows for a New Mexico accredited investor (must file a NM income tax return) to take a tax credit (not refund) of 25% of their investment, up to $62,500 per investment, limited to 5 investments per taxable year on qualified angel investments (see Company section below for requirements). Any unused portion of the credit can be carried forward for five consecutive years.
- Credit can only be claimed on one qualified investment per company per round in the investment year.
- Credit is non-refundable
- Carry-forward period is 5 years
- Claims will be paid by NM TRD on a first-come, first-served basis. If the total claims in a year exceed the $2 million cap, unpaid claims will be granted priority for the following year.
- The bill sunsets December 31, 2024.
When companies present for investment, we will let you know if the investment is applicable for the tax credit.
If your investment qualifies for the credit, fill out the following documents: Investor Tax Credit Application
If you are carrying a credit forward from a previous claim: Angel Tax Credit Claim Form
The investment company should provide you with the needed information.
If your company received Angel funding and fits the criteria, fill out the following documents (note: section B must be filled out for each individual investor):
Criteria required to qualify – see Section K #5 and #6 of HB 002 Below
- A majority of employment and a majority of the investment must be located in New Mexico.
- Company must be engaged in “qualified research” as defined in Section 41 of the Internal Revenue Code or manufacturing