New Mexico 2022 Regular Session Status: In Committee Bipartisan · 2 D · 1 R cosponsors

HB 80 — ANGEL INVESTMENT CREDIT REFUNDABLE

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

199 added · 164 removed

Plain-language change summary

The amended version of Bill HB 80 increases the percentage of the tax credit that taxpayers can claim from 25% to 50% of their qualified investments. Additionally, it introduces a higher credit amount specifically for investments in businesses owned by women and people of color. These changes are significant because they aim to stimulate investment in underserved communities, potentially boosting local economic growth and promoting diversity in business ownership.

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HOUSE BILL 80 55TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2022 INTRODUCED BY Linda Serrato and Meredith A.
HOUSE COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTE FOR HOUSE BILL 80 55TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2022 4 6 8 10 AN ACT RELATING TO TAXATION;
Dixon and Joshua Hernandez and Martin Hickey 7 9 AN ACT RELATING TO TAXATION;
INCREASING THE AMOUNT OF THE CREDIT AND THE AGGREGATE CAP IN CREDITS PER CALENDAR YEAR;
INCREASING THE AMOUNT OF THE CREDIT;
PROVIDING A HIGHER AMOUNT OF CREDIT FOR INVESTMENTS IN MAJORITY WOMEN- OR PERSON-OF-COLOR-OWNED BUSINESSES;
INCREASING THE AGGREGATE CAP;
16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
e t 17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
e t 17 SECTION 1.
w l n d 18 SECTION 1.
Section 7-2-18.17 NMSA 1978 (being Laws 2007, w l n d 18 Chapter 172, Section 1, as amended) is amended to read:
Section 7-2-18.17 NMSA 1978 (being Laws 2007, = = 19 a l Chapter 172, Section 1, as amended) is amended to read:
= = 19 a l "7-2-18.17.
i a e r 20 "7-2-18.17.
ANGEL INVESTMENT CREDIT.-- i a e r 20 A.
ANGEL INVESTMENT CREDIT.-- a t m m 21 A.
A taxpayer who files a New Mexico income tax a t m m 21 return, is not a dependent of another taxpayer, is an d r e 22 accredited investor and makes a qualified investment may apply c e s k 23 for, and the department may allow, a claim for a credit in an e a n b 24 amount not to exceed [twenty-five] fifty percent of the u [ qualified investment;
A taxpayer who files a New Mexico income tax d r e 22 return, is not a dependent of another taxpayer, is an c e s k 23 accredited investor and makes a qualified investment may apply e a n b 24 for, and the department may allow, a claim for a credit [in an u [ amount not to exceed twenty-five percent of the qualified .222233.2 HCEDC/HB 80 investment;
provided that a credit for each qualified .221701.1 investment shall not exceed sixty-two thousand five hundred dollars ($62,500).
provided that a credit for each qualified investment shall not exceed sixty-two thousand five hundred dollars ($62,500)] against the taxpayer's tax liabilities pursuant to the Income Tax Act.
The amount of an angel investment credit shall be in an amount equal to the following amounts;
provided that a credit for each qualified investment shall not exceed sixty-two thousand five hundred dollars ($62,500):
(1) for a qualified investment in a majority women- or person-of-color-owned business, fifty percent of the qualified investment;
and (2) for a qualified investment in all other businesses, forty percent of the qualified investment.
[B.] C.
(1) for not more than one qualified investment per investment round;
e t 17 (1) for not more than one qualified investment w l n d 18 per investment round;
(2) for qualified investments in no more than five qualified businesses per taxable year;
= = 19 (2) for qualified investments in no more than a l i a e r 20 five qualified businesses per taxable year;
and (3) for a qualified investment made on or before December 31, 2025.
and a t m m 21 (3) for a qualified investment made on or d r e 22 before December 31, 2025.
C.
c e s k 23 [C.] D.
A taxpayer may apply for an angel investment credit by submitting a completed application to the [taxation and revenue] department on forms and in a manner required by the department no later than one year following the end of the calendar year in which the qualified investment is made.
A taxpayer may apply for an angel e a n b 24 investment credit by submitting a completed application to the u [ [taxation and revenue] department on forms and in a manner .222233.2 - 2 - HCEDC/HB 80 required by the department no later than one year following the end of the calendar year in which the qualified investment is made.
A e t 17 taxpayer shall not apply for more than one credit for the same w l n d 18 qualified investment in the same investment round.
A taxpayer shall not apply for more than one credit for the same qualified investment in the same investment round.
= = 19 a l D.
[D.
Except as provided in Subsection J of this i a e r 20 section, a taxpayer shall claim the angel investment credit no a t m m 21 later than one year following the date the completed d r e 22 application for the credit is approved by the department.
Except as provided in Subsection J of this section] E.
c e s k 23 E.
A taxpayer shall claim the angel investment credit no later than one year following the date the completed application for the credit is approved by the department.
Applications and all subsequent materials e a n b 24 submitted to the [taxation and revenue] department related to u [ the application shall also be submitted to the economic .221701.1 - 2 - development department.
[E.] F.
F.
Applications and all subsequent materials submitted to the [taxation and revenue] department related to the application shall also be submitted to the economic development department.
The [taxation and revenue] department shall allow a maximum annual aggregate of [two million dollars ($2,000,000)] ten million dollars ($10,000,000) in angel investment credits per calendar year.
[F.] G.
Completed applications shall be considered in the order received.
The [taxation and revenue] department shall allow a maximum annual aggregate of [two million dollars ($2,000,000)] ten million dollars ($10,000,000) in angel e t 17 investment credits per calendar year.
Applications for credits that would have been allowed but for the limit imposed by this subsection shall be allowed in subsequent calendar years.
Completed applications w l n d 18 shall be considered in the order received.
G.
Applications for = = 19 credits that would have been allowed but for the limit imposed a l i a e r 20 by this subsection shall be allowed in subsequent calendar a t m m 21 years.
The [taxation and revenue] department shall report annually to the revenue stabilization and tax policy committee and the legislative finance committee on the utilization and effectiveness of the angel investment credit.
d r e 22 [G.] H.
The report shall include, at a minimum:
The [taxation and revenue] department shall c e s k 23 report annually to the revenue stabilization and tax policy e a n b 24 committee and the legislative finance committee on the u [ utilization and effectiveness of the angel investment credit.
.222233.2 - 3 - HCEDC/HB 80 The report shall include, at a minimum:
the amount e t 17 of credit for which each investor was determined to be w l n d 18 eligible;
the amount of credit for which each investor was determined to be eligible;
and the number and names of the businesses determined = = 19 a l to be qualified businesses for purposes of an investment by an i a e r 20 accredited investor.
and the number and names of the businesses determined to be qualified businesses for purposes of an investment by an accredited investor.
a t m m 21 H.
[H.] I.
A taxpayer who otherwise qualifies for and d r e 22 claims a credit pursuant to this section for a qualified c e s k 23 investment made by a partnership or other business association e a n b 24 of which the taxpayer is a member may claim a credit only in u [ proportion to the taxpayer's interest in the partnership or .221701.1 - 3 - business association.
A taxpayer who otherwise qualifies for and claims a credit pursuant to this section for a qualified investment made by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in the partnership or business association.
I.
[I.] J.
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Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim one-half of the credit that would have been allowed on a joint return.
Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim one-half of the credit that would e t 17 have been allowed on a joint return.
J.
w l n d 18 [J.] K.
The angel investment credit may only be deducted from the taxpayer's income tax liability.
The angel investment credit may only be = = 19 deducted from the taxpayer's income tax liability.
Any portion of the tax credit provided by this section that remains unused at the end of the taxpayer's taxable year [may be carried forward for five consecutive years] shall be refunded to the taxpayer.
Any portion a l i a e r 20 of the tax credit provided by this section that remains unused a t m m 21 at the end of the taxpayer's taxable year [may be carried d r e 22 forward for five consecutive years] shall be refunded to the c e s k 23 taxpayer.
K.
e a n b 24 L.
The department shall adopt rules to establish u [ the procedures for determining if a business is majority women- .222233.2 - 4 - HCEDC/HB 80 or person-of-color-owned.
The department may rely on federal or state certifications and information that relate to the ownership of a business.
[K.] M.
(2) "business" means a corporation, general e t 17 partnership, limited partnership, limited liability company or w l n d 18 other similar entity, but excludes an entity that is a = = 19 a l government or a nonprofit organization designated as such by i a e r 20 the federal government or any state;
(2) "business" means a corporation, general partnership, limited partnership, limited liability company or other similar entity, but excludes an entity that is a government or a nonprofit organization designated as such by the federal government or any state;
a t m m 21 (3) "equity" means common or preferred stock d r e 22 of a corporation, a partnership interest in a limited c e s k 23 partnership or a membership interest in a limited liability e a n b 24 company, including debt subject to an option in favor of the u [ creditor to convert the debt into common or preferred stock, a .221701.1 - 4 - partnership interest or a membership interest;
(3) "equity" means common or preferred stock of a corporation, a partnership interest in a limited partnership or a membership interest in a limited liability e t 17 company, including debt subject to an option in favor of the w l n d 18 creditor to convert the debt into common or preferred stock, a = = 19 partnership interest or a membership interest;
(4) "investment round" means an offer and sale of securities and all other offers and sales of securities that would be integrated with such offer and sale of securities under Regulation D issued by the federal securities and exchange commission pursuant to the federal Securities Act of 1933, as amended;
a l i a e r 20 (4) "investment round" means an offer and sale a t m m 21 of securities and all other offers and sales of securities that d r e 22 would be integrated with such offer and sale of securities c e s k 23 under Regulation D issued by the federal securities and e a n b 24 exchange commission pursuant to the federal Securities Act of u [ 1933, as amended;
(5) "manufacturing" means combining or processing components or materials to increase their value for sale in the ordinary course of business, but does not include:
.222233.2 - 5 - HCEDC/HB 80 (5) "manufacturing" means combining or processing components or materials to increase their value for sale in the ordinary course of business, but does not include:
e t 17 (6) "qualified business" means a business w l n d 18 that:
(6) "qualified business" means a business that:
= = 19 a l (a) maintains its principal place of i a e r 20 business and employs a majority of its full-time employees, if a t m m 21 any, in New Mexico and a majority of its tangible assets, if d r e 22 any, are located in New Mexico;
(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;
c e s k 23 (b) engages in qualified research or e a n b 24 manufacturing activities in New Mexico;
(b) engages in qualified research or e t 17 manufacturing activities in New Mexico;
u [ (c) is not primarily engaged in or is .221701.1 - 5 - not primarily organized as any of the following types of businesses:
w l n d 18 (c) is not primarily engaged in or is = = 19 not primarily organized as any of the following types of a l i a e r 20 businesses:
credit or finance services, including banks, savings and loan associations, credit unions, small loan companies or title loan companies;
credit or finance services, including banks, a t m m 21 savings and loan associations, credit unions, small loan d r e 22 companies or title loan companies;
financial brokering or investment;
financial brokering or c e s k 23 investment;
professional services, including accounting, legal services, engineering and any other service the practice of which requires a license;
professional services, including accounting, legal e a n b 24 services, engineering and any other service the practice of u [ which requires a license;
construction or construction contracting;
construction .222233.2 - 6 - HCEDC/HB 80 or construction contracting;
has not issued securities traded on a national e t 17 securities exchange;
has not issued securities traded on a national securities exchange;
is not subject to reporting requirements w l n d 18 of the federal Securities Exchange Act of 1934, as amended;
is not subject to reporting requirements of the federal Securities Exchange Act of 1934, as amended;
and = = 19 a l is not registered pursuant to the federal Investment Company i a e r 20 Act of 1940, as amended, at the time of the investment;
and is not registered pursuant to the federal Investment Company Act of 1940, as amended, at the time of the investment;
a t m m 21 (e) has one hundred or fewer employees d r e 22 calculated on a full-time-equivalent basis in the taxable year c e s k 23 in which the investment was made;
(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 e a n b 24 (f) has not had gross revenues in excess u [ of [five million dollars ($5,000,000)] ten million dollars .221701.1 - 6 - ($10,000,000) in any fiscal year ending on or before the date of the investment;
and e t 17 (f) has not had gross revenues in excess w l n d 18 of [five million dollars ($5,000,000)] ten million dollars = = 19 ($10,000,000) in any fiscal year ending on or before the date a l i a e r 20 of the investment;
(7) "qualified investment" means a cash investment in a qualified business for equity, but does not include an investment by a taxpayer if the taxpayer, a member of the taxpayer's immediate family or an entity affiliated with the taxpayer receives compensation from the qualified business in exchange for services provided to the qualified business within one year of investment in the qualified business;
a t m m 21 (7) "qualified investment" means a cash d r e 22 investment in a qualified business for equity, but does not c e s k 23 include an investment by a taxpayer if the taxpayer, a member e a n b 24 of the taxpayer's immediate family or an entity affiliated with u [ the taxpayer receives compensation from the qualified business .222233.2 - 7 - HCEDC/HB 80 in exchange for services provided to the qualified business within one year of investment in the qualified business;
APPLICABILITY.--The provisions of this act apply to applications for an angel investment credit for qualified investments made on or after January 1, 2022.
APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2022.
- 7 - e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .221701.1
- 8 - 10 12 14 16 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .222233.2
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Action History

  1. action postponed indefinitely

  2. DO NOT PASS, replaced with committee substitute

  3. Sent to House Commerce & Economic Development Committee & House Taxation & Revenue Committee

  4. Sent to House Pre-file

Sponsors

Sponsorship breakdown

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4 sponsors · 0 co-sponsors · 108 not signed on

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (108)

108 members have not signed on to this bill.

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Frequently asked questions

Who sponsors HB 80?
HB 80 is sponsored by Hickey, Martin, Joshua N. Hernandez (Republican), Meredith A. Dixon (Democrat), and Linda Serrato (Democrat).
What is the current status of HB 80?
This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 80?
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