RPD-41320: RPD-41320 Angel Investment Credit Claim Form (2024)
New Mexico · New Mexico TRD · Used for tax years 2024
Form RPD-41320 is used to claim New Mexico’s angel investment credit against income tax due. It reports approved credits, amounts claimed in previous years, unused credits, and the amount applied to the current return.
Who files this form
Use Form RPD-41320 to claim an approved New Mexico angel investment credit. The form identifies eligible taxpayers as those who:
- File a New Mexico personal income tax return.
- Are not another individual's dependent.
- Are accredited investors.
- Make a qualified investment in a qualified high-technology or manufacturing business.
You must first apply for a certificate of eligibility using Form TRD-41404, Angel Investment Credit Application for Qualified Businesses. Only the person named on the certificate may claim the credit.
When it's due
For the 2024 version, the form requires you to submit the claim to the Department no later than one year after the end of the calendar year in which you made the qualified investment. It does not print a specific calendar due date for a 2024 investment.
Attach Form RPD-41320 to the New Mexico income tax return for the tax year in which you take the credit.
What you'll need
To claim the credit, prepare:
- Completed Form RPD-41320, including Schedule A.
- A copy of your certificate of eligibility from the Department.
- Your New Mexico income tax return for the year you are taking the credit.
- The applicable credit schedule, PIT-CR or FID-CR.
For Schedule A, you will need each certificate number, approval year, approved credit amount, and total credit claimed in earlier tax years. You will also need your net New Mexico income tax before credits.
How to file
- Apply for a certificate of eligibility using Form TRD-41404. Completed applications are considered in the order received.
- After approval, complete Form RPD-41320 and Schedule A. Enter one row for each approved credit, showing the unused balance and the amount applied to the attached return.
- Add Schedule A column (f) and enter the total on line 3 of Form RPD-41320. Complete the taxpayer information, tax-year dates, and net tax amount, then sign and date the form.
- Attach the claim form, Schedule A, a copy of the certificate, and the applicable PIT-CR or FID-CR to your New Mexico income tax return.
Mail the form with your return to the address printed on the personal or fiduciary income tax return. The supplied text does not provide e-filing instructions.
Common mistakes
- Claiming more than the tax due. Line 3 must not exceed the net New Mexico personal or fiduciary income tax due. The Schedule A instructions also limit total credits applied to the net New Mexico income tax before credits.
- Leaving out required attachments. Include Schedule A, the certificate copy, and the applicable credit schedule.
- Using newer credits first. Apply approved credits in order, using the oldest credit before a new credit.
- Including credits already used in full. Do not list those credits on Schedule A.
- Carrying credits forward too long. Unused credits may not be carried forward for more than five consecutive tax years after the approval tax year.
- Claiming someone else's certificate. Only the person to whom the certificate was issued may claim the credit.
Questions people ask
How much is the credit for tax year 2024?
The credit is 25% of the qualifying investment, up to $62,500 for each qualified investment. You may claim no more than one qualified investment per investment round and investments in no more than five qualified businesses per tax year.
What counts as a qualified investment?
It must be a cash investment for equity in a qualified business. It does not qualify if you, an immediate family member, or an affiliated entity receives compensation from that business for services within one year of the investment.
Can I carry unused credit forward?
Yes. Unused credits may be carried forward for five consecutive years. The form separately notes a three-year carryforward for credits issued in 2014 or earlier.
How is the credit divided when married taxpayers file separately?
If they could have filed jointly, each may claim one-half of the credit that would have been allowed on a joint return.
Where can I get help with this form?
Call the Department at (505) 827-0792 or email businesscredit.mgr@tax.nm.gov.