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
Victor Hwang illuminates the Kauffman Foundation’s entrepreneurial vision, new hires
Victor Hwang, the Ewing Marion Kauffman Foundation’s vice president of entrepreneurship, recently took to LinkedIn to map out his vision for 2017 and beyond. In addition to making a series of new hires, Hwang outlined the four main areas of focus for the foundation: entrepreneurial education, entrepreneurial ecosystems, market gaps and big ideas. “We are…
Global Prairie sues ag tech firm FarmLink for loan default
Kansas City-based marketing firm Global Prairie has filed suit against a local ag tech firm for defaulting on a loan, according to a document that was filed Nov. 14 in Jackson County Court. In the document, Global Prairie alleged that Kansas City-based FarmLink failed to fulfill payments on a promissory note in the amount of…
Judge: KC, St. Louis Tesla shops can remain open (for now)
As we said goodbye to 2016, Tesla — along with many other Americans — faced an uncertain future in the Show Me State. When the clock struck midnight, the auto maker’s license to sell cars in Missouri expired. This prompted the firm to close its three locations in Kansas City and St. Louis on Saturday — but not…
Eyeing a funding round? InvestMidwest deadline looms
The top investment forum in the Midwest is hoping to garner more applications from fast-growing firms in the Kansas City area. Now in its 18th year, the InvestMidwest Venture Capital Forum hosts investors from around the world that hope to hear from the region’s most-promising firms that need a boost of capital. Companies that presented…