A bill that expands Connecticut’s angel investor tax credit program to businesses in any industry has unanimously passed the Senate.
Scheduled to go into effect July 1, if approved by the governor, House Bill 5583 would open up the program beyond already specified technology industries.
Under current law, angel investors can only receive a 25 percent personal income tax credit if they invest in “emerging technology” companies, which includes bioscience, advanced materials, clean technology, photonics, and information technology firms.
The bill approved by the House and Senate would extend the angel investor tax credit to all industries.
The amount of credits would remain capped at $3 million per year, and at least 75 percent would be reserved for emerging technology companies, according to the bill.
To qualify, angel investments must be at least $25,000 and come from accredited investors. The companies receiving the investments must be principally operating in Connecticut, have less than $1 million in revenue, and be seven years old or less.
