The New Mexico State Investment Council has approved a 55 percent increase in investments into New Mexico-based businesses from the state’s Severance Tax Permanent Fund.
The council approved investing an additional $200 million-plus to the $360 million invested in 73 New Mexico businesses since 1993.
The council also increased the 5 percent target investment of the $5.5 billion Severance Tax Permanent Fund into New Mexico-based business to 9 percent, which is the current cap for these investments. The council will seek legislative approval in 2020 to increase the cap to 11 percent.
“The idea will be to increase the number of New Mexico companies we invest in and get more companies in an early stage,” council spokesman Charles Wollman said.
Each year, 4.7 percent of the Severance Tax Permanent Fund is transferred into the state’s general fund. The severance fund is derived from payments for oil, gas and natural gas transported out of — or severed from — the state.