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
‘A relentless pursuit of perfection’ earns Niall national nod
Kansas City watching-making startup Niall recently topped a list of leading American-made watches. A publication that features social impact brands,The Good Trade dished a cornucopia of commendations to Niall, a two-year-old startup that’s surged in popularity and snagged headlines around the nation. The online media group made note of CEO Michael Wilson’s tireless pursuit of excellence with…
Fund Me, KC: FireBoard’s thermometer cooks up smarter chefs
Startland News is continuing its segment to highlight area entrepreneurs’ efforts to accelerate their businesses. This is an opportunity for entrepreneurs — like Fireboard founder Ted Conrad — to share their stories to gain a little help from their supporters. Back FireBoard’s Kickstarter here. Who are you? Ted Conrad, founder of FireBoard What does FireBoard…
Serial entrepreneur Gary Fish’s new venture is ‘about helping others be successful’
After over a year of settling down into a relaxed lifestyle, serial entrepreneur Gary Fish found that he missed the thrill of competition that comes with running a business. In April, the successful Kansas City businessman launched Fishtech Labs — a managed security services company that also boasts an investment arm that targets tech firms.…
Ahead of KC Coworking Week, leaders dispel industry misconceptions
About a year ago, leaders in Kansas City’s coworking industry banded together in an alliance to bring awareness to their trade. The Kansas City Coworking Alliance has grown as a catalyst in the area startup community, promoting independent collaborative working among entrepreneurs and remote workers. Comprised of 10 studios around the metro, the group is…