Provides capital for startup companies
FRANKFORT, Ky. (Feb. 5, 2015) — Kentucky investors and small businesses are already reaping the benefits of the Kentucky Angel Investment Tax Credit.
In the program’s first month, 40 angel investors—people who provide capital for startup companies—announced plans to invest more than $2.8 million in 12 Kentucky businesses. As a result, the investors will be eligible for $1.1 million in angel investment tax credits – more than a third of the state’s allotted angel tax credits for 2015.
“This is a shining example of how Kentucky is proactively supporting our economy,” said Gov. Steve Beshear. “I’m excited to see so many investors capitalize on the opportunity to support small businesses and create more jobs. It’s truly a win-win for everyone involved.”
Last year Beshear signed legislation allowing individual angel investors to receive tax credits. Previously, only groups of angel investors (with fund managers) could take advantage of the credits.
Individual angel investors can receive a tax credit of up to half of their investment in counties with high unemployment rates, or enhanced counties, and 40 percent in all other counties. Approved investors can claim the credits on their 2015 tax returns.
Out-of-state investors can take advantage of the credit, too. Though out-of-state investors may not have any Kentucky tax liability, they can transfer that tax credit to someone else within the commonwealth. If a Kentucky taxpayer is willing to purchase the credit, the investor will recover some portion of the investment.
The expansion is designed to encourage more investment in Kentucky’s small businesses. The credit, in turn, is expected to spark more innovation, business creation and jobs.
Related news:
Applications being accepted for Kentucky Angel Investment Fund Tax Credit
Eastern Kentucky ‘angel’ investor group for small business start-ups launched in Ashland
Add Comment