New Mexico Angel Investment Tax Credit
New Mexico Economic Development Department / New Mexico Taxation and Revenue Department
Up to $62,500
25% credit for New Mexico angels
New Mexico's Angel Investment Tax Credit lets an accredited investor claim a 25% New Mexico income tax credit on a qualified equity investment in an early-stage New Mexico business engaged in high-technology research or manufacturing. The credit is capped at $62,500 per qualified investment, with an investor able to claim it for up to five qualified businesses per taxable year (one investment per round). The investor must first obtain a certificate of eligibility from the New Mexico Economic Development Department. The credit was extended in 2023 and now applies to qualifying investments made through December 31, 2030, making it one of the longer-runway angel credits in the Southwest.
- Funding type
- Tax credit
- Level
- State
- Amount range
- Up to $62,500
- Realistic amount
- An angel investing $50,000–$250,000 in a qualifying New Mexico company earns a $12,500–$62,5…
- Deadline
- Rolling — investor applies to the New Mexico Economic Development Department for a certificate of eligibility; credit available for qualified investments made through December 31, 2030.
- Status
- active
- States
- New Mexico
- Payment model
- tax-credit-offset
Who qualifies
- Investor must be an accredited investor under SEC Rule 501 and file a New Mexico income tax return
- Qualified equity investment in a New Mexico business engaged in high-technology research (qualified research under IRC Section 41) or manufacturing
- Qualifying business must maintain its principal place of business in New Mexico
- Qualifying business must have 100 or fewer full-time-equivalent employees
- Qualifying business must not have had gross revenues exceeding $5 million in any fiscal year
- Qualifying business must not be publicly traded (no securities registered under Section 6 of the Securities Act of 1933)
- Business must not be primarily engaged in excluded sectors (finance, professional services, insurance, real estate, construction, mining, retail/wholesale, utilities, publishing, broadcasting, internet services)
- Investor must obtain a certificate of eligibility from the New Mexico Economic Development Department
How to apply
-
1
Confirm the business qualifies
Verify the New Mexico company meets the qualified-business tests (principal place of business in NM, high-tech research or manufacturing, 100 or fewer FTEs, under $5M gross revenue, not publicly traded, not in an excluded sector).
~2 hrs
-
2
Business files the Qualified Business Application with EDD
The qualifying business submits or has on file the Angel Investment Qualified Business Application with the New Mexico Economic Development Department, identifying qualified investors and amounts invested.
~2 hrs
-
3
Investor applies for a certificate of eligibility
The accredited investor applies to the EDD for a certificate of eligibility for the angel investment credit tied to the qualifying investment.
~2 hrs
-
4
Claim the credit on the NM income tax return
With the certificate, the investor claims the 25% credit (up to $62,500 per investment) on the New Mexico personal income tax return, attaching the required schedule (e.g., RPD-41320). Unused credit carries forward.
~2 hrs
Because the statewide pool is only $2 million per calendar year, apply for the certificate of eligibility early in the year — and make sure the business has its Qualified Business Application on file with EDD before you invest, since the credit depends on that company-side paperwork existing. An active angel can claim up to five separate $62,500 credits in one tax year by backing five qualifying companies.
Deadline & timing
There is no annual competitive window, but the program has a $2 million statewide aggregate cap per calendar year, issued as eligible applications are certified. The qualified business must have the Angel Investment Qualified Business Application on file with EDD identifying investors and amounts.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.