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
Meet the five area startups partnering with KCMO to drive innovation
A quintet of startup firms are working with the City of Kansas City, Mo. as part of its Innovation Partnership Program. Launched in 2015, IPP pairs area startups with city departments to not only identify new efficiencies but also offer the firm a chance to earn business with the city. After being designated a department…
KC entrepreneurial leader Wullschleger becomes new WeWork director
Before its doors even open, WeWork is making significant inroads to the area entrepreneur community. The international coworking giant — which announced plans to create a 40,000-square-foot space in Kansas City in March — has hired Erik Wullschleger to become its community director. Most recently the director of LiveKC and previously general manager of the…
Wide Ruled: The future of Kansas schools with education commissioner Randy Watson
Editor’s note: In partnership with the Wide Ruled podcast hosted by Brainroot Light and Sound, Startland News hopes to offer its audience more avenues to learn about innovators in Kansas City. Opinions expressed in this commentary are the author’s alone. Wide Ruled is a Kansas City-based podcast focused on equality in education. Each episode showcases a…
ScaleUP! KC welcomes 16 new entrepreneurs to the program
On Wednesday ScaleUP! KC welcomed 16 new entrepreneurs into its incubator program’s sixth cohort. To qualify, ScaleUP! companies must be in business for at least two years, generate annual sales of between $150,000 and $750,000 and have the potential to reach to $1 million in sales. Startups from the latest cohort represent industries such as…