New Mexico 2023 Regular Session Status: In Committee Bipartisan · 2 D · 1 R cosponsors

HB 69 — ANGEL INVESTMENT CREDIT CHANGES

Last action — DO PASS, as amended, committee report adopted

  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 2023 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

290 added · 250 removed

Plain-language change summary

The latest version of House Bill 69 includes a clarification that it may incorporate amendments proposed by a committee, even if those amendments haven't been adopted yet. Additionally, it specifies that the document is intended to show amendments in context rather than adding new changes. These updates are important as they help provide a clearer understanding of the bill's current status and prevent confusion about what has been officially adopted.

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HOUSE BILL 69 56TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2023 INTRODUCED BY Linda Serrato and Meredith A.
HOUSE BILL 69 56TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2023 INTRODUCED BY Linda Serrato and Meredith A.
Hernandez 6 8 10 AN ACT RELATING TO TAXATION;
Hernandez This document may incorporate amendments proposed by a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.
MAKING THE ANGEL INVESTMENT CREDIT REFUNDABLE;
The document is a tool to show amendments in context and cannot be used for the purpose of adding amendments to legislation.
INCREASING THE AMOUNT OF THE AGGREGATE CAP IN CREDITS PER CALENDAR YEAR;
h AN ACT g o RELATING TO TAXATION;
EXTENDING THE AMOUNT OF TIME TO MAKE A QUALIFIED INVESTMENT AND BE ELIGIBLE FOR THE CREDIT.
HCEDCºMAKING THE ANGEL INVESTMENT CREDIT t hr g e i k REFUNDABLE;»HCEDC INCREASING THE AMOUNT OF THE AGGREGATE CAP IN h r i s HCEDCºANGEL INVESTMENT»HCEDC CREDITS PER CALENDAR YEAR;
16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
h , t, e u g EXTENDING THE AMOUNT OF TIME TO MAKE A QUALIFIED INVESTMENT AND e b l e e h BE ELIGIBLE FOR THE CREDIT.
e t 17 SECTION 1.
n d d i = = o h l ] b ,d i a º e r i = r BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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:
t e w d m a n o SECTION 1.
= = 19 a l "7-2-18.17.
Section 7-2-18.17 NMSA 1978 (being Laws 2007, d m :
ANGEL INVESTMENT CREDIT.-- i a e r 20 A.
b e d s º o t n = .223511.1AIC February 1, 2023 (10:21am) s k m e e a n e d r e l u [ A d Chapter 172, Section 1, as amended) is amended to read:
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 percent of the qualified u [ investment;
"7-2-18.17.
provided that a credit for each qualified .223511.1 investment shall not exceed sixty-two thousand five hundred dollars ($62,500).
ANGEL INVESTMENT CREDIT.-- A.
A taxpayer who files a New Mexico income tax return, is not a dependent of another taxpayer, is an accredited investor and makes a qualified investment may apply for, and the department may allow, a claim for a credit in an amount not to exceed twenty-five percent of the qualified investment;
provided that a credit for each qualified investment shall not exceed sixty-two thousand five hundred dollars ($62,500).
(2) for qualified investments in no more than five qualified businesses per taxable year;
(2) for qualified investments in no more than h five qualified businesses per taxable year;
and (3) for a qualified investment made on or before December 31, [2025] 2030.
and g o t hr (3) for a qualified investment made on or g e i k before December 31, [2025 ] 2030.
C.
h r i s C.
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 investment h , t, credit by submitting a completed application to the [taxation e u g e b l e e h and revenue] department on forms and in a manner required by n d d i = = o h the department no later than one year following the end of the l ] b ,d i a º e 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 r i = r t e w d m a n o taxpayer shall not apply for more than one credit for the same d m :
= = 19 a l D.
b e d s º o t n = .223511.1AIC February 1, 2023 (10:21am) s k m e - 2 - e a n e d r e l u [ A d qualified investment in the same investment round.
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.
D.
c e s k 23 E.
Except as provided in Subsection J of this section, 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 .223511.1 - 2 - development department.
E.
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)] five million dollars ($5,000,000) in angel investment credits per calendar year.
The [taxation and revenue ] department shall allow a maximum annual aggregate of [two million dollars ($2,000,000)] five million dollars ($5,000,000) in angel 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.
Applications for credits that would have been allowed but for the limit imposed by this subsection shall be allowed in subsequent calendar h years.
G.
g o t hr G.
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.
The [taxation and revenue ] department shall g e i k report annually to the revenue stabilization and tax policy h r i s committee and the legislative finance committee on the h , t, utilization and effectiveness of the angel investment credit.
The report shall include, at a minimum:
e u g e b l e e h The report shall include, at a minimum:
the number of accredited investors determined to be eligible for the credit in the previous year;
the number of n d d i = = o h accredited investors determined to be eligible for the credit l ] b ,d i a º e in the previous year;
the amount e t 17 of credit for which each investor was determined to be w l n d 18 eligible;
the amount r i = r t e w d m a n o of credit for which each investor was determined to be d m :
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.
b e d s º o t n = .223511.1AIC February 1, 2023 (10:21am) s k m e - 3 - e a n e d r e l u [ A d eligible;
a t m m 21 H.
and the number and names of the businesses determined to be qualified businesses for purposes of an investment by an accredited investor.
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 .223511.1 - 3 - business association.
H.
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.
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 of the tax credit provided by this section that remains unused at the h end of the taxpayer's taxable year HCEDCº [may be carried u » r forward for five consecutive years]»HCEDC HCEDCºmay be carried t h g e l i forward for five consecutive years»HCEDC HCEDCºshall be h r i s refunded to the taxpayer»HCEDC .
K.
h , e h K.
(1) "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;
t u g e b l e e , gh (1) "accredited investor" means a person who n d d i = = o h is an accredited investor within the meaning of Rule 501 issued l ] b ,d i a º r by the federal securities and exchange commission pursuant to e r = t e w d m a n o the federal Securities Act of 1933, as amended;
(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;
d m :
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 .223511.1 - 4 - partnership interest or a membership interest;
b r e t º o t n = .223511.1AIC February 1, 2023 (10:21am) s k m e - 4 - e a n e d r e l u [ A d (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;
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(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;
(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 company, including debt subject to an option in favor of the creditor to convert the debt into common or preferred stock, a partnership interest or a membership interest;
(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:
(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 h 1933, as amended;
(a) construction;
g o t hr (5) "manufacturing" means combining or g e i k processing components or materials to increase their value for h r i s sale in the ordinary course of business, but does not include:
(b) farming;
h , t, (a) construction;
(c) processing natural resources, including hydrocarbons;
e u g e b l e e h (b) farming;
or (d) preparing meals for immediate consumption, on- or off-premises;
n d d i = = o h (c) processing natural resources, l ] b ,d i a º e including hydrocarbons;
e t 17 (6) "qualified business" means a business w l n d 18 that:
or r i = r t e w d m a n o (d) preparing meals for immediate d m :
= = 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;
b e d s º o t n = .223511.1AIC February 1, 2023 (10:21am) s k m e - 5 - e a n e d r e l u [ A d consumption, on- or off-premises;
c e s k 23 (b) engages in qualified research or e a n b 24 manufacturing activities in New Mexico;
(6) "qualified business" means a business that:
u [ (c) is not primarily engaged in or is .223511.1 - 5 - not primarily organized as any of the following types of businesses:
(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 or is not primarily organized as any of the following types of businesses:
professional services, including accounting, legal services, engineering and any other service the practice of which requires a license;
professional services, including accounting, legal services, engineering and any other service the practice of h which requires a license;
construction or construction contracting;
construction u » r or construction contracting;
wholesale or retail trade;
t h g e l i wholesale or retail trade;
providing utility service, including water, sewerage, electricity, natural gas, propane or butane;
providing utility service, including h r i s water, sewerage, electricity, natural gas, propane or butane;
publishing, including publishing newspapers or other periodicals;
h , e h publishing, including publishing newspapers or other t u g e b l e e , gh periodicals;
or providing internet operating services;
or providing internet operating n d d i = = o h services;
(d) has not issued securities registered pursuant to Section 6 of the federal Securities Act of 1933, as amended;
l ] b ,d i a º r (d) has not issued securities registered e r = t e w d m a n o pursuant to Section 6 of the federal Securities Act of 1933, as d m :
has not issued securities traded on a national e t 17 securities exchange;
b r e t º o t n = .223511.1AIC February 1, 2023 (10:21am) s k m e - 6 - e a n e d r e l u [ A d amended;
is not subject to reporting requirements w l n d 18 of the federal Securities Exchange Act of 1934, as amended;
has not issued securities traded on a national securities exchange;
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;
is not subject to reporting requirements of the federal Securities Exchange Act of 1934, as amended;
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;
and is not registered pursuant to the federal Investment Company Act of 1940, as amended, at the time of the investment;
and e a n b 24 (f) has not had gross revenues in excess u [ of five million dollars ($5,000,000) in any fiscal year ending .223511.1 - 6 - on or before the date of the investment;
(e) has one hundred or fewer employees calculated on a full-time-equivalent basis in the taxable year in which the investment was made;
(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;
and (f) has not had gross revenues in excess of five million dollars ($5,000,000) in any fiscal year ending on or before the date of the investment;
and (8) "qualified research" means "qualified research" as defined by Section 41 of the Internal Revenue Code." SECTION 2.
(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 h in exchange for services provided to the qualified business u » r 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, 2023.
and t h g e l i (8) "qualified research" means "qualified h r i s research" as defined by Section 41 of the Internal Revenue h , e h Code." t u g e b l e e , gh SECTION 2.
- 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 [ .223511.1
APPLICABILITY.--The provisions of this act n d d i = = o h apply to applications for an angel investment credit for l ] b ,d i a º r qualified investments made on or after January 1, 2023.
e r = t e w d m a n o - 7 - d m :
b r e t º o t n = .223511.1AIC February 1, 2023 (10:21am) s k m e e a n e d r e l u [ A d
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Action History

  1. DO PASS, as amended, committee report adopted

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

  3. Sent to House Pre-file

Sponsors

Sponsorship breakdown

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3 sponsors · 0 co-sponsors · 109 not signed on

Sponsors (3)

Co-sponsors (0)

None.

Not signed on (109)

109 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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taxation finance
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Frequently asked questions

Who sponsors HB 69?
HB 69 is sponsored by Linda Serrato (Democrat), Meredith A. Dixon (Democrat), and Joshua N. Hernandez (Republican).
What is the current status of HB 69?
This bill died with 2023 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 69?
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