Senator Mark Pryor has introduced legislation that would give angel investors in qualifying small businesses (broadly defined) a federal income tax credit equal to 25% of the amount invested. You can find the text of the proposed legislation here and quoted in full below.
Senator Pryor’s bill is a great idea. However, there are certain things about it that I would suggest changing.
First, the way the bill is currently drafted companies will have to apply to participate in the program. There is an overall cap on the dollar amount of the tax credits available under the program per year, and the government is going to play a role in deciding which companies qualify, including taking into account geographic areas that have traditionally been underserved by angel and venture capital investment. I would change this to a per taxpayer limit, to avoid the government having to run an application and approval process that will undoubtedly be very political.
Second, I would not limit the credit to only “accredited investors.”
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.