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
Profit and purpose: Innovators share 5 social entrepreneurship lessons
It’s been said that the best things in life are free. But what social entrepreneurs know well, is that it’s not that simple — nearly everything in life comes at a cost, including the positive impact they’re trying to make. And at Thursday’s Conquer for Good conference, a variety of innovators shared how they’re working…
KC tech innovators deliver mindset and personal development advice
For many, starting a business may sound like the dream — being your own boss, making your own rules and devising your own schedule. But the reality is that the entrepreneurial life isn’t all sunshine and roses. Like most good things in life, it comes with risk and challenges. And on Wednesday a panel of…
Darcy Howe’s hustle grows, guides KCRise Fund in first year
Kansas City may not realize its good fortune with the tenacious manager of a relatively new fund that’s investing in early-stage firms. Self-described as a builder that’s competitive and impatient, Darcy Howe is weaving her years of determined leadership into the KCRise Fund, which just wrapped up its first year with $14 million in the…
Deadlines approach for BetaBlox, EY awards; LaunchKC opening soon
Kansas City abounds with growth opportunities for startups and entrepreneurs — sometimes the trick is just finding them. To that end, here are a variety of opportunities for founders and supporters of Kansas City’s entrepreneurial ecosystem whose deadlines are approaching. Thanks to our friends at KCSourceLink for aggregating these opportunities! BetaBlox Deadline: March 1 Kansas City-based accelerator…