Bill > SB413

This bill amends existing New Mexico law to modify the Angel Investment Credit, a tax incentive designed to encourage investments in New Mexico businesses. Key changes include increasing the maximum qualified investment amount eligible for the credit from $100,000 to $250,000, and extending the sunset date for these investments from December 31, 2016, to December 31, 2025. The bill also adjusts the limitations on claiming the credit, allowing a taxpayer to claim it for investments in no more than five qualified businesses per taxable year, and increasing the carry-forward period for unused credits from three to five years. Furthermore, the annual cap on the total amount of angel investment credits the Economic Development Department can issue is raised from $750,000 to $2,000,000. The definition of a "qualified business" is updated to require that it maintains its principal place of business and employs a majority of its full-time employees in New Mexico, and that a majority of its tangible assets are located there. The bill also clarifies that "qualified research" will be defined according to Section 41 of the Internal Revenue Code. These provisions apply to taxable years beginning on or after January 1, 2015.