IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

SMEs

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 17 Jun 2015 | Removal date: 31 Dec 2024
Still in force

Tax or social insurance relief

On June 17, 2015 the New Mexico state legislature approved a bill (HB002) that incentivizes new investments. The Angel Tax Credit allows for a New Mexico accredited investor to take a tax credit of 25% of their investment, up to $62,5000 per investment, limited to 5 investments per taxable year on qualified angel investments. Any unused portion of the credit can be carried forward for five consecutive years.

A “qualified business” under this law is one that (a) maintains its principal place of business and employs a majority of its full-time employees, if any, in New Mexico and a majority of its tangible assets, if any, are located in New Mexico; (b) engages in qualified research or manufacturing activities in New Mexico; (c) is not primarily engaged in certain enumerated businesses (e.g., credit or finance services, professional services, insurance, real estate, construction, mining, wholesale or retail trade, utilities, publishing, broadcasting, and Internet operating services), (d) has not issued securities, (e) has one hundred or fewer employees calculated on a full-time-equivalent basis in the taxable year in which the investment was made; and (f) has not had gross revenues in excess of $5,000,000 in any fiscal year ending on or before the date of the investment.

The program sunsets December 31, 2024.

AFFECTED COUNTRIES

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