April 7, 2017

House passes bill broadening angel investment eligibility

PHOTO | Contributed
PHOTO | Contributed
Speaker of the House Joe Aresimowicz (D-Berlin), was one of the 144 representatives who supports broadening the state's angel investor program.

The House of Representatives has unanimously approved a bill that would make more Connecticut companies eligible for angel investments.

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 House voted 144-0 on Wednesday in favor of House Bill 5583, which would extend the angel investor tax credit to all industries. Among the many supporters was House Speaker Joe Aresimowicz.

"This bill makes it easier to do business and encourages job growth, which are top priorities in Connecticut," Aresimowicz testified in February.

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.

The tax credit program is run by Connecticut Innovations, the state's quasi-public venture arm.

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