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
KCRise fund lands $10M to kickoff startup investing
Kansas City-area startups have a new, local fund to boost their investment rounds. The KCRise fund announced Thursday the closing of $10 million that will co-invest with institutional venture capital groups in early-stage companies based in the Kansas City area. Launched in February in conjunction with the KC Rising economic initiative, the fund was created…
Tech leaders: KC is built to be a hub for driverless cars
The Obama administration on Tuesday revealed a set of guidelines for automakers to ensure a safe, efficient rollout of self-driving vehicles in the United States. The rapid development of autonomous vehicle tech, according to the administration, makes it clear that its emergence into American’s everyday life is no longer a question of if — but…
Parallels emerge between Midwest, Belfast entrepreneurs
Belfast, Northern Ireland — Despite the some 4,000 miles between them, entrepreneurs in Northern Ireland and the Midwest have more in common than one may know. During a series of business and social gatherings with members of the Pipeline entrepreneurial fellowship program, Belfast entrepreneurs quickly learned how similar they are to those in America’s “flyover”…
Olathe partnership bears fruit in latest Digital Sandbox cohort
With the buzz of Techweek KC still in the air, Kansas City-based incubator Digital Sandbox reveals the four new startups in their program. Directed by Jeff Shackleford, Digital Sandbox invests up to $25,000 in area companies and provides proof-of-concept resources. Launching in 2013, the incubator has worked with over 300 entrepreneurs and early stage companies…