Form Rpd-41320 Draft - Angel Investment Credit Claim Form (Page 3 of 3) in pdf

State of New Mexico - Taxation and Revenue Department

RPD-41320

Rev. 09/04/2012

ANGEL INVESTMENT CREDIT CLAIM FORM

Instructions

ganized as any of the following types of businesses: credit

Important: The New Mexico Economic Development De-

partment may not issue a certificate of eligibility for an angel

or finance services -- including banks, savings and loan as-

DRAFT

investment credit once the total amount of credit exceeds

sociations, credit unions, small local companies or title loan

companies; financial brokering or investment; professional

$750,000 in a calendar year. Credits that were not certified

services -- including accounting, legal services, engineer-

in a calendar year because of this limit may be certified in

subsequent calendar years. Applications for credit will be re-

ing and any other services the practice of which requires a

license; insurance; real estate; construction or construction

viewed, and if approved, issued in the order the applications

09/04/2012

contracting; consulting or brokering; mining; wholesale or retail

were received.

trade; providing utility service -- including water, sewerage,

Applying credit against personal income tax liabilities.

electricity, natural gas, propane or butane; publishing -- includ-

ing publishing newspapers or other periodicals; broadcasting;

The angel investment credit may only be deducted from the

taxpayer’s personal income tax liability. Any portion of the

or providing internet operating services; (d) has not issued

tax credit that remains unused at the end of the taxpayer’s

securities registered pursuant to Section 6 of the federal

Securities Act of 1933, as amended; has not issued securi-

taxable year may be carried forward for three consecutive

ties traded on a national securities exchange; is not subject

years. A claim for the credit may not be made or allowed with

respect to any investment made before January 1, 2007, or

to reporting requirements of the federal Securities Exchange

Act of 1934, as amended; and is not registered pursuant to

after December 31, 2016.

the federal Investment Company Act of 1940, as amended,

A husband and wife who file separate returns for a taxable

at the time of the investment; (e) has 100 or fewer employees

calculated on a full-time-equivalent basis at the time of the

year in which they could have filed a joint return may each

investment; and (f) has not had gross revenues in excess of

claim one-half of the credit that would have been allowed on

a joint return.

$5,000,000 in any fiscal year ending on or before the date of

the investment.

A taxpayer who otherwise qualifies for and claims a credit for a

High-technology research means research: (a) that is

qualified investment made by a partnership or other business

undertaken for the purpose of discovering information that is

association of which the taxpayer is a member may claim

technological in nature and the application of which is intended

a credit only in proportion to the taxpayer’s interest in the

to be useful in the development of a new or improved business

partnership or business association. The total credit claimed

component of the qualified business; and (b) substantially all

in the aggregate by all members of the partnership or busi-

of the activities of which constitute elements of a process or

ness association in a taxable year with respect to a qualified

experimentation related to a new or improved function, per-

investment shall not exceed $25,000.

formance, reliability or quality, but not related to style, taste

or cosmetic or seasonal design factors.

IMPORTANT DEFINITIONS

Manufacturing means combining or processing components

Accredited investor means a person who is an accredited

investor within the meaning of Rule 501 issued by the federal

or materials to increase their value for sale in the ordinary

Securities and Exchange Commission pursuant to the federal

course of business, but does not include: (a) construction;

(b) farming; (c) processing natural resources, including hydro-

Securities Act of 1933, as amended.

carbons; or (d) preparing means for immediate consumption,

Qualified investment means a cash investment in a qualified

on- or off-premises.

business for equity, but does not include an investment by a

taxpayer if the taxpayer, a member of the taxpayer’s imme-

Forms and contacts:

diate family or an entity affiliated with the taxpayer receives

Forms are available on the New Mexico Economic Develop-

compensation from the qualified business in exchange for

ment Department web site at , and on the New

services provided to the qualified business within one year

Mexico Taxation and Revenue Department web site at

www.

of investment in the qualified business.

tax.newmexico.gov.

Business means a corporation, general partnership, limited

Applications for the certificate of eligibility must be mailed

partnership, limited liability company or other similar entity,

to:

but excludes an entity that is a government or a non-profit

organization designated as such by the federal government

Angel Investment Tax Credit Program

or any state.

Economic Development Department

1100 So. St. Francis Drive,

Qualified business means a business that: (a) maintains

Joseph Montoya Building, Suite 1060

its principal place of business in New Mexico; (b) engages in

Santa Fe, New Mexico 87504

high-technology research or manufacturing activities in New

Mexico; (c) is not primarily engaged in or is not primarily or-

Form Rpd-41320 Draft - Angel Investment Credit Claim Form Page 3

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