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
Airbnb tells KCMO ‘go back to the drawing board’ on new proposed regulations
Airbnb and Homeaway hosts in Kansas City, Mo. are likely to see a set of new regulations for their properties soon. After more than a year of culling public input, the City of Kansas City, Mo. has drafted a proposed ordinance on how to regulate local home-sharing services like Airbnb and Homeaway. The proposal would…
KCultivator Q&A: Big-hearted prankster Robert Manigold on opera singing, empathy and Weird Al
Editor’s note: KCultivators is a new, lighthearted profile series we’re kicking off to highlight people who are meaningfully enriching Kansas City’s entrepreneurial ecosystem. Check out our feature on Prep-KC CEO Susan Wally and community builder Donald Carter. If you live or work in downtown Kansas City, you’ve likely seen Robert Manigold. The “Ambassador of Awesome”…
Events Preview: Innovation Exchange, Verge KC
There are a plethora of entrepreneurial events hosted in Kansas City on a weekly basis. Whether you’re an entrepreneur, investor, supporter, or curious community member — we recommend these upcoming events for you. Are you hosting a relevant community event? Feel free to add it to the FWD/KC calendar for increased exposure. Once your event…
KC nonprofit leader will advise FCC committee on broadband
The leader of an area nonprofit focused on making Kansas City a digital leader will be offering his broadband expertise to a Federal Communications Commission committee. KC Digital Drive managing director Aaron Deacon was recently appointed to a group within the Federal Communications Commission’s Broadband Deployment Advisory Committee. Deacon’s group — Competitive Access to Broadband…