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Arizona Angel Capital Tax Credit Passes
Arizona's investment and technology communities are the anticipated winners from the state legislature's recent passage of a tax credit encouraging angel capital investments in start-up Arizona tech firms.
Senate Bill 1335 provides individual investors, limited partnerships or "S" corporations a 10 percent state tax credit per year for three years for investments in qualified technology companies. For investments in qualified biotech firms or for technology businesses located in rural areas, the credit climbs to 12 percent per year for two years and 11 percent the third year. Investments must be a minimum of $25,000 and only the first $250,000 of any investment is eligible for the tax credit.
The Arizona Department of Commerce will administer the angel investment tax program, capped at $20 million over five years, and will qualify eligible companies and investors. Qualifying technology firms must employ at least two individuals and having no more than $2 million in assets.
Gov. Janet Napolitano's signature on the measure is expected, according to a May 10 article in the Arizona Republic.
More information on S.B. 1335 is available at: http://www.azleg.state.az.us/legtext/47leg/1r/bills/sb1335h.htm