Expand "angel investor" tax credit: help fund new companies
Republican Gov. Susana Martinez proposes to expand economic development tax incentives aimed at encouraging investment in startup and technology companies. Martinez outlined the measures on Friday. The tax changes will need approval of the
Legislature to take effect.
One proposal expands a tax credit provided to "angel investors" who help finance new companies.
The governor wants to provide up to $2 million a year in credits, up from a current $750,000 cap, and increase the individual investments that qualify for a tax break.
Martinez also proposes to revamp existing credits for small technology companies,
potentially costing the state $2 million a year. One change would allow firms to collect a refund for some spending on research and development if their tax credits exceed their tax liability.
$4.75M investment in Job Training Incentive Program
We need to make sure all small business owners know we believe in them. That's why I'm proposing that we give every New Mexico small business a $1,000 tax credit for every job created and retained over the next two years.
In these uncertain times, if a small business owner is willing to take the risk to invest in a new job, then we should stand with them.
But competing for jobs goes further than just common-sense tax policy. We need to partner with our small business owners to help them hire and train new workers now. That is why I am also requesting a $4.75 million investment to further
the success of our Job Training Incentive Program, or JTIP. This is a partnership with small businesses to help them train new employees and encouraging more hiring.
I've long said government doesn't create jobs. It doesn't--small businesses do. We can do so much more to level the playing field for our small businesses, to put more New Mexicans back to work.
That's why I am proposing that we exempt roughly half of
New Mexico's small businesses--those earning less than $50,000 per year--from the gross receipts tax. That's roughly 40,000 of our small businesses--the little ones, the start-ups. This is a bottom-up approach.
Source: 2012 New Mexico State of the State Address
, Jan 17, 2012