A new law will revive an expired tax credit that encourages investment dollars into early-stage, innovative companies in Illinois.
The Angel Investment Tax Credit, which expired last December, allows investors to take a 25 percent tax credit on a minimum $10,000 investment in eligible small businesses. Qualifying companies must have fewer than 100 employees and be principally engaged in innovation or technology in Illinois.
“As we compete in a global job market, it is more important than ever that we grow jobs locally by incentivizing investors to offer opportunities for otherwise unfunded entrepreneurs and startups as our future job creators," said Sen. Chuck Weaver (R-Peoria), chief Senate sponsor of the legislation. "Encouraging these types of investments will help us grow jobs and businesses that will allow our economy to expand for years to come.”
Senate Bill 2012 is the type of pro-growth economic measure that is need to make Illinois a more business-friendly environment. Fostering innovation and technology development among entrepreneurs who are trying to grow their small business is critical to Illinois’ future success, and proponents say the Angel Investment Tax Credit is one important way the state can help entrepreneurs succeed, including those who are typically underrepresented in the technology sector.
The new law revives and extends the credit for five years and caps the program at $10 million annually. For the first time, the law sets aside $500,000 for investment specifically in businesses in rural Illinois counties and another $500,000 for businesses owned by women, minorities and people with disabilities. The previous tax credit expired Dec. 31, 2016.
For the first time, this program will set aside much needed funds to help small, innovative businesses in rural Illinois and those owned by women, minorities and people with disabilities. Advocates of SB 2012 say this tool will help spur innovation in Illinois and create much-needed jobs in rural counties and throughout Illinois.
Lt. Gov. Sanguinetti, who chairs the Governor’s Rural Affairs Council, worked with several state legislators on this bill, including Sen. Chuck Weaver (R-37), Sen. Dale Fowler (R-59), Sen. Daniel Biss (D-9), Rep. Grant Wehrli (R-41), Rep. Carol Sente (D-59), Rep. Jaime Andrade Jr. (D-40) and Rep. Elgie Sims (D-34).
For more information on the Angel Investment Program click here.