Bill > SB133

This bill establishes a new "small business investment income tax credit" for New Mexico taxpayers who are accredited investors, meaning they meet specific federal income and net worth requirements, and make a qualified investment in a New Mexico-based small or emerging business. The credit allows taxpayers to claim up to 25% of their qualified investment, with a maximum investment of $250,000 per investment, against their state income tax liability. A qualified business must have its principal place of business and majority of employees and assets in New Mexico, and cannot be primarily involved in certain industries like finance, professional services, real estate, or mining, among others. The bill also sets an annual cap of $2 million on the total amount of these credits that can be issued by the economic development department, and requires businesses to have 100 or fewer employees and less than $5 million in gross revenues in the preceding fiscal year to qualify. Taxpayers must apply for certification from the economic development department, and the credit can be carried forward for up to five years if it exceeds the tax liability in a given year, but it cannot be claimed for investments made after December 31, 2022, and cannot be used in conjunction with other specific investment tax credits. The economic development department will report annually on the credit's utilization and effectiveness.