To encourage individuals to invest in promising startups that need capital to grow, the State of Connecticut has created the Angel Investor Tax Credit Program. Administered through Connecticut Innovations, this program provides qualified investors with a 25% credit against Connecticut’s state income tax when they invest at least $25,000 in qualifying businesses. (See list of those business here.)
Eligibility for Tax Credit
To qualify for this tax credit, you will need to meet the state's definition of an accredited investor or network of accredited investors and invest between $25,000 to $1,000,000 in a Qualified Connecticut Business.
Investors that are NOT eligible for this tax credit include:
- venture capitalists;
- savings and loan associations;
- trust companies;
- insurance companies and similar entities whose business activities include venture capital investments;
- people who control 50% or more of the qualified business that's receiving the investment.
How to Apply for Tax Credit
Please note that you must apply for this tax credit and receive a tax credit reservation number — before you make your investment. You'll find complete application instructions on the Connecticut Innovations website.
If you'd like to learn more about how you can become a Qualified Connecticut Business (QCB) that is eligible to receive these types of incentivized investments, contact Connecticut Innovations. While businesses from all industry sectors may apply to be a QCB, your business must have:
- gross revenues of less than $1 million in the most recent income year;
- fewer than 25 employees (including shareholders, members or active partners), at least 75% of whom are Connecticut residents;
- operated in Connecticut for fewer than seven consecutive years;
- received less than $2 million in eligible investments from angel investors.
For additional information or questions, contact: Tamyra Davis at (860) 258-7858 or via email at email@example.com.