Incentives Directory

Angel Investment Credit

AGENCY: Taxation and Revenue Department
DESCRIPTION: The Angel Investment Tax Credit provides a 25% credit on the qualifying investment in a high-technology or manufacturing business. The maximum investment for which a credit will be allowed for a business is $100,000. The maximum credit will total $25,000 annually per investment. The angel investment credit may only be deducted from the taxpayer’s personal income tax liability.
ELIGIBILITY:  Accredited investor means a person who is an accredited investor within the meaning of Rule 501 issued by the federal Securities and Exchange Commission pursuant to the federal Securities Act of 1933, as amended.
Qualified investment means a cash investment in a qualified business for equity.
Qualified business means a business that: (a) maintains its principal place of business in New Mexico; (b) engages in high-technology research or manufacturing activities in New Mexico; (c) is not primarily engaged in or is not primarily organized as any of the following types of businesses: credit or finance services -- including banks, savings and loan associations, credit unions, small local companies or title loan companies; financial brokering or investment; professional services -- including accounting, legal services, engineering and any other services the practice of which requires a license; insurance; real estate; construction or construction contracting; consulting or brokering; mining; wholesale or retail trade; providing utility service -- including water, sewerage, electricity, natural gas, propane or butane; publishing -- including publishing newspapers or other periodicals; broadcasting; or providing internet operating services; (d) has not issued securities registered pursuant to Section 6 of the federal Securities Act of 1933, as amended; has not issued securities traded on a national securities exchange; is not subject to reporting requirements of the federal Securities Exchange Act of 1934, as amended; and is not registered pursuant to the federal Investment Company Act of 1940, as amended, at the time of the investment; (e) has 100 or fewer employees calculated on a full-time-equivalent basis at the time of the investment; 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.
High-technology research means research: (a) that is undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the development of a new or improved business component of the qualified business; and (b) substantially all of the activities of which constitute elements of a process or experimentation related to a new or improved function, performance, reliability or quality.
Manufacturing means combining or processing components or materials to increase their value for sale in the ordinary course of business, but does not include: (a) construction; (b) farming; (c) processing natural resources, including hydrocarbons; or (d) preparing means for immediate consumption, on- or off- premises.
QUALIFICATIONS/CRITERIA:
• To qualify a taxpayer must apply for a certificate of eligibility for the Angel Investment Credit to the 7 3/11
•  Economic Development Department (EDD).
•  To claim the credit, submit a completed Form RPD-41320, Angel Investment Credit Claim Form, and a copy of the certificate of eligibility to the Taxation and Revenue Department.
•  Accredited investors are allowed credits for two qualifying investments annually, provided that each investment is in a different qualified business.
•  Angel Investment Credits may be carried forward for up to three years.
•  For assistance obtaining the certificate of eligibility for the Angel Investment Credit, contact Kathy McCormick at the Economic Development Department at (505) 670-6320.
•  Or, Visit the Taxation and Revenue Department homepage at http://www.state.nm.us/tax/home.htm or call the office of the Secretary at (505) 827-0951.

Category: State Incentives, Tax Incentives

More State Incentives, Tax Incentives

AGENCY: Department of Health and Human Services, Administration for Children and Families, Administration for Native Americans (ANA) DESCRIPTION: Provides financial assistance through grants or contracts to further the three goals of the ANA: governance, economic development and social development. ELIGIBLE USES: • Technical assistance and... Learn More
DESCRIPTION: The Advanced Energy Tax Credit provides a 6% credit against gross receipts tax, compensating tax, withholding tax, personal income tax or corporate income tax liability for the generation of electricity. ELIGIBILITY: A taxpayer that holds an interest in a qualified electric generating facility... Learn More
AGENCY: Federal Home Loan Bank (FHLBank) via Dallas DESCRIPTION: This program finances home-ownership for families with incomes at or below 80% of the median income for an area. Also provides financing for rental housing in which 20% of the units must be affordable and... Learn More
AGENCY: Federal Aviation Administration DESCRIPTION: The Airport Improvement Program (AIP) provides grants to public agencies and, in some cases, to private owners and entities, for the planning and development of public-use airports that are included in the National Plan of Integrated Airport Systems (NPIAS)... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: The Biodiesel Blending Facility Tax Credit provides a credit equal to 30% of the cost of purchasing and installing biodiesel blending equipment. ELIGIBILITY: A taxpayer who is a rack operator as defined in the Special Fuels Supplier Tax... Learn More
DESCRIPTION: An ESOP is classified as an employee benefit plan that can be used for corporate debt financing. ELIGIBLE USE: • ESOPs are empowered to fulfill many different financing roles for a business: • Buy out shareholders; • Finance capital expansion; • Refinance existing... Learn More
AGENCY: Construction Programs Bureau, New Mexico Environment Department DESCRIPTION: The Bureau has money to lend as part of its mission to protect human health and the environment via its administration of drinking water and wastewater projects. ELIGIBILITY: Eligible public entities include municipalities, counties, special... Learn More
DESCRIPTION: Leasing is an alternative to purchasing general equipment, furniture, medical equipment, office machines, typewriters and computers. ELIGIBLE USE: • Leasing provides the following benefits: • A tax advantage through accelerated depreciation; • Frees up cash for other uses; • Allows lines of credit to... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: An eligible film production company may apply for, and the Taxation and Revenue Department may allow, a tax credit of 25%. New changes will become effective July 1, 2011. ELIGIBILITY: •  Expenses including the direct production expenditures made... Learn More
AGENCY: Flywheel Ventures DESCRIPTION: Flywheel Ventures is a seed and early-stage venture capital firm focused on information technology and physical sciences ventures in the Southwest/Rockies region. The firm matches talented entrepreneurs with market opportunities where Flywheel’s capital, entrepreneurial experience and industry relationships help accelerate... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: •  Property interests of a lessee in project property held under a lease from a county or municipality under authority of an Industrial Revenue Bond (IRB), Pollution Control Revenue Bond Act, or the Statewide Economic Development Finance Act... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: The High-Wage Jobs Tax Credit provides a refundable tax credit to businesses for each high-wage job created. ELIGIBLE USES: •  The credit is equal to 10% of the salary and benefits of each qualifying economic-based job, up to... Learn More
AGENCY: U.S. Department of the Interior, National Park Service DESCRIPTION: Tax incentives are available where historic structures are certified as having received rehabilitation to preserve and enhance their historic character. ELIGIBLE USES: A certified historic structure listed in the National Register of Historic Places or... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: To finance Medicaid and indigent healthcare recipients, the governing body of any county may enact an ordinance imposing an excise tax of 1/16% for each purpose. ELIGIBILITY: Any county is eligible to pass the 1/16% increase to fund... Learn More
AGENCY: Department of Housing and Urban Development (HUD) and local Public Housing Authorities DESCRIPTION: Family Self-Sufficiency is a HUD program that encourages communities to develop local strategies to help voucher families obtain employment that will lead to economic independence and self-sufficiency. ELIGIBILITY: Families that... Learn More
AGENCY: Department of Housing and Urban Development (HUD) DESCRIPTION: Housing choice vouchers allow very low-income families to choose and lease or purchase safe, decent, and affordable privately-owned rental housing. The various types of vouchers include Conversion Vouchers, Family Unification Vouchers, Homeownership Vouchers, Project Based... Learn More
PROGRAM: Indian Intergovernmental Tax Credit AGENCY: Taxation and Revenue Department DESCRIPTION: A company engaged in growing, processing or manufacturing may receive a tax credit from taxes imposed by an Indian nation, Tribe or Pueblo located wholly or partly in New Mexico. PROGRAM/LOAN STRUCTURE: Maximum... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: It is the purpose of the Investment Credit Act [Chapter 7, Article 9A NMSA 1978] to provide a favorable tax climate for manufacturing businesses and to promote increased employment in New Mexico. The Investment Credit Act was introduced... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: To encourage travel by turboprop or jet-type powered airlines, the 2006 Legislature has allowed for a deduction for fuel to power those types of airplanes. ELIGIBILITY: Any supplier of fuel prepared and sold for use in turboprop and... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: The Job Mentorship Tax Credit encourages New Mexico businesses to hire youth participating in career preparation education programs. ELIGIBILITY: A company that files a corporate income tax return. STRUCTURE: • This tax credit provides for a tax credit... Learn More
AGENCY: Mortgage Finance Authority (MFA) DESCRIPTION: The Low-Income Housing Tax Credit Program was created by the Tax Reform Act of 1986. The purpose of the program is to stimulate the development of low-income rental housing (new construction and rehabilitation) by providing tax credits to... Learn More
AGENCY: Mortgage Finance Authority (MFA) DESCRIPTION: The purpose of Access Loans is to provide federally insured construction and permanent financing for small scale affordable housing projects throughout New Mexico. It is designed to minimize transaction and due diligence costs and expedite processing for small... Learn More
AGENCY: Mortgage Finance Authority (MFA) DESCRIPTION: The HOME/Rental Gap Financing Programs provide gap financing for a variety of affordable and special needs housing projects throughout the state of New Mexico. As gap financing, HOME funds are typically the last dollars committed to a project... Learn More
AGENCY: Mortgage Finance Authority (MFA) DESCRIPTION: The HOME/Single Family Development Program provides partial or “gap” financing to non-profit and for-profit developers, public and tribal entities, and Community Housing Development Organizations (CHDOs) for the construction, acquisition and rehabilitation of single family homes throughout New Mexico... Learn More
AGENCY: Mortgage Finance Authority (MFA) DESCRIPTION: The Housing Tax Credit Program (HTC) provides federal income tax credits to individuals or organizations that develop affordable housing through either new construction or acquisition and rehabilitation. The tax credits provide a dollar for dollar reduction in the... Learn More
AGENCY: New Mexico Finance Authority (NMFA) DESCRIPTION: The NMFA has the authority to form, operate, own, or co-own any number of qualified community development entities to participate in the federal New Markets Tax Credits Program. The program was established primarily to provide greater access... Learn More
AGENCY: Department of Cultural Affairs, Historic Preservation Division ELIGIBILITY: The state income tax credit is available to owners of historic structures who accomplish qualified, rehabilitation on a structure or stabilization or protection of an archaeological site. Eligible applicants must own or lease a property that... Learn More
AGENCY: New Mexico State Investment Council (SIC) DESCRIPTION: The SIC invests in private equity through limited partnerships to enhance the economic climate in the State of New Mexico. ELIGIBLE USE: The SIC, through the Private Equity Investment Program, provides a source of equity to... Learn More
AGENCY: Loan Fund DESCRIPTION: NMCDLF’s mission is to provide loans and assistance to improve the economic and social conditions of New Mexicans. NMCDLF programs are designed to alleviate the high poverty rate in the state and to assist New Mexicans in becoming economically self-sufficient... Learn More
DESCRIPTION: Production Credit Associations are customer-owned, credit cooperatives established by farmers and ranchers to provide themselves a source of reliable credit. PCAs form a nationwide system operated under the Farm Credit System created by Congress in 1917. ELIGIBLE USE: • PCAs may offer •... Learn More
AGENCY: Taxation and Revenue Department ELIGIBILE USES: Real and tangible property is subject to taxation at the local level is eligible for the exemption. PROGRAM LOAN/STRUCTURE: • Maximum Program Benefits: Land, buildings and equipment associated with an eligible project are exempt from ad valorem... Learn More
AGENCY: New Mexico State Investment Council (SIC) DESCRIPTION: Severance Tax Permanent Fund (STPF) investment in the U.S. government guaranteed portion of business and/or agriculture loans by financial institutions. ELIGIBLE USES: • The STPF serves as a secondary market. • Loan proceeds may be used... Learn More
AGENCY: New Mexico State Investment Council (SIC) DESCRIPTION: Often referred to as the "Oregon Plan". The Severance Tax Permanent Fund (STPF) may be invested in participations of real estate loans made by financial institutions. ELIGIBLE USES: • Loan proceeds may be used: • Purchase... Learn More
AGENCY: Cibola Communities Economic Development Foundation DESCRIPTION: A variety of incentives offered to encourage economic development in Cibola County. PROGRAM/LOAN STRUCTURE: Financial assistance is provided through gap financing and small business loans. QUALIFICATION CRITERIA/COMMENTS: • Available to qualified manufacturing and processing businesses located or willing... Learn More
AGENCY: Energy, Minerals, and Natural Resources Department DESCRIPTION: To encourage the growth of and investment in renewable sources of energy, the state of New Mexico allows a certain amount of credit for those eligible against their corporate income tax. ELIGIBILITY: A person is eligible... Learn More
AGENCY: Taxation and Revenue Department ELIGIBILITY: Any taxpayer that is a qualified research and development small business is eligible. The costs of a qualified research and development business are eligible for this tax credit. PROGRAM/LOAN STRUCTURE: • Maximum Program Benefits: Credit may be taken... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: Employers in rural areas will be entitled to a tax credit when expanding their work force. PROGRAM/LOAN STRUCTURE: • The Economic Development Department will determine which employers are eligible and will report the listing to the Taxation and... Learn More
AGENCY: Taxation and Revenue Department DESCRIPTION: As of the 2006 Legislature, a 10% tax credit on the installation and purchase of solar thermal and photovoltaic systems in a residence, business, or agricultural enterprise in New Mexico is allowed; the desire is to encourage the... Learn More
AGENCY: North Central New Mexico Economic Development District (NCNMEDD) DESCRIPTION: The Tri-County Regional Revolving Loan Fund is an incentive implemented to assist counties impacted by program changes experienced by Los Alamos National Laboratory (LANL). ELIGIBLE USE: • The types of organizations and projects that... Learn More
DESCRIPTION: Venture capital is a source of private capital. ELIGIBLE USE: • Fund raising technique. • Generally requires the exchange of equity in return for funding. • Generally requires a high rate of return on investment (20% per annum). • Typical investment ranges from... Learn More