TRD-41404: TRD-41404 Angel Investment Credit Application (Revision 2024-03)
New Mexico · New Mexico TRD · Used for tax years 2024, 2025, 2026
Form TRD-41404a is New Mexico’s Angel Investment Credit Application for Qualified Business. It collects information about the business’s ownership, activities, employees, and qualifying cash investments received from accredited investors.
Who files this form
This application is for the Angel Investment Credit for qualified investments made from January 1, 2019, through December 31, 2030.
- Qualified businesses complete TRD-41404a.
- Accredited investors complete TRD-41404b.
The taxpayer seeking the credit must file a New Mexico income tax return, must not be another taxpayer’s dependent, must be an accredited investor, and must make a qualified investment.
A qualified business must meet the requirements in the instructions, including requirements for its New Mexico operations, research or manufacturing activities, business type, securities status, employee count, and gross revenues.
When it's due
Submit the completed application no later than one year following the end of the calendar year in which the qualified investment was made.
What you'll need
Both application types require a signature and all applicable supporting documents.
Qualified business documents
- Proof of gross revenues less than $5 million in any fiscal year ending on or before the investment date, as listed in the documentation table.
- Copies of returns if a New Mexico return was not filed.
- A year-to-date income statement if a return has not been filed for the investment year.
- Documents showing that the majority of tangible assets are in New Mexico.
- Supporting documents for research and development or manufacturing activities, if requested.
Accredited investor documents
- Proof of the applicable accredited investor status. The instructions list net worth statements, account balance statements, tax returns, income records, a bank letter verifying trust information and balance, or other supporting documents, depending on the basis for qualification.
- For income-based qualification, proof of income for the investment year and the two preceding years.
- Proof of investment, such as a copy of the check, a bank statement showing the transaction, or proof of wire transfer.
- If a third party was involved, proof of both transfers: from the investor to the third party and from the third party to the qualified business.
- Documents verifying the equity received for the cash investment.
- The qualified business’s approval letter from New Mexico Taxation and Revenue.
Additional documentation may be requested if the Department cannot verify information internally.
To claim an approved credit on a tax return, attach the completed PIT-CR or FID-CR, Form RPD-41320, and a copy of the Certificate of Eligibility to Form PIT-1 or FID-1.
How to file
Online: Apply through Taxpayer Access Point (TAP). You must have a TAP account. From the home page, select the account type, PIT or FID, click Apply for Tax Credit, and follow the steps for the Angel Investment Credit Application.
By mail: Send the completed application to:
NM Taxation and Revenue Department
Attn: Business Tax Credits
PO Box 8485
Albuquerque, New Mexico 87198
Required copy: Also submit a copy of the application and supporting documents to:
NM Economic Development Department
Attn: Angel Investment Tax Credit Program
P.O. Box 20003
Santa Fe, NM 87504
For help completing the application, call 505-795-1735 or email TRD-BusinessCredit@state.nm.us.
Common mistakes
- Leaving applicable fields blank or omitting attachments. The instructions require a complete application and warn that missing documents can delay processing.
- Forgetting the signature. Both application types require a signature for the credit to be evaluated.
- Not sending the required copy to the Economic Development Department. Include both the application and supporting documents.
- Claiming the credit without the required forms and certificate. Failure to submit the required Schedule CR, RPD-41320, and Certificate of Eligibility with the tax return will result in denial of the credit.
Questions people ask
How much is the credit?
The Department may allow up to 25% of the qualified investment, with a maximum credit of $62,500 for each qualified investment.
How many investments can qualify?
An accredited investor may claim the credit for no more than one qualified investment per investment round. A taxpayer may claim it for investments in no more than five qualified businesses per tax year.
Can I carry forward unused credit?
Yes. Unused Angel Investment Credits may be carried forward for five consecutive years.
How long does the application review take?
The Department will make a determination within 120 days after receiving a completed application. If approved, a dated Certificate of Eligibility will be mailed to the address provided.
What if I invested through another entity?
If a middle-party entity received the cash and then invested it in a qualified company, identify that entity on the investor application. The entity must also complete a separate Angel Investment Credit Application, and proof of both investment transfers is required.