Kansas’ angel tax credits sprint to legal finish line
March 22, 2016 | Bobby Burch
The Kansas House of Representatives nearly unanimously agreed that the state’s Angel Investor Tax Credits program must continue to boost early-stage businesses.
The House voted 122 to 3 in favor of a measure that will extend the life of the $6 million program until 2021. Angel investor tax credits, which are set to expire in 2016, offer accredited investors a tax credit of up to $50,000 on an investment in a Kansas business, helping to mitigate risk and encourage investments.
The bill now goes into conference committee to resolve any disagreements in language. After that, the bill heads to the Kansas Gov. Sam Brownback’s desk for a signature to be made law. The tax credits program is now a part of omnibus tax measure SB 149.
Arguably the biggest win for supporters is that lawmakers retained its current allocation levels of $6 million per year. That allocation is more than double any nearby state offering a similar program. Missouri doesn’t offer angel tax credits, further providing Kansas an advantage in attracting businesses to the state.
The Senate, which already voted on the measure, unanimously supported the bill in a 40 to 0 vote. The three Kansas House members voting against the bill were: Amanda Grosserode, R-Lenexa, Michael Houser, R-Columbus, and Craig McPherson, R-Overland Park.
Kansas’ more than $600 million budgetary shortfall — which resulted from the legislature’s slashing of personal income taxes in 2012 and 2013 — has been the largest complicating factor for the future of the tax credit.
Entrepreneurs and other support organizations have rallied in support of the popular program, which has been tapped by more than 300 startups in its 11 years. In addition to spurring nearly $370 million in total capital raised, the tax credits have helped create more than 1,400 jobs and preserve nearly another 450. Since its inception in 2005, the program has provided $55.9 million in tax credits to investors funding Kansas startups.
Startland News will keep you posted on any updates regarding the bill. For more information on the impact of the program, check the infographic below. To learn more about how it works, check out the bottom of this story.
2016 Startups to Watch
stats here
Related Posts on Startland News
Innovation Stockyard feeds effort to protect food chain
When feeding the world, being proactive on animal health technology is vital, Ronan Molloy said. “The reality is, its importance will only hit home when we have a significant event, like a swine flu,” Molloy, president of Innovation Stockyard, said. “Then all of the sudden people will say ‘Oh, why is my fillet now $40…
Students bump shoulders with architects at STEAM Studio
Most children won’t have experience working in a professional environment until they land their first job or internship, Mandi Sonnenberg said. “Some kids may have popped into their mom or dad’s work and have gone to a professional space at least a couple times in their life,” Sonnenberg said. “But for kids in the urban…
Smart City Living Lab opens, targets growing pains of a swelling city
The much-anticipated “Kansas City Living Lab” — a platform for application development that taps the Kansas City Smart City initiative — is now welcoming new tech partners. Using smart city infrastructure, the Living Lab allows innovators to test and commercialize technologies that can solve problems in Kansas City. The project is led by Think Big…
JE Dunn spinout Site 1001 raises millions more from local investors
A Kansas City-based tech firm that’s created a smart buildings platform recently raised another significant batch of venture capital funding. Site 1001 — a technology spin out from Kansas City construction giant JE Dunn Construction — raised $6 million to boost its engineering, research and sales efforts. The round was led by JE Dunn Construction…