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
And the winners of Startland’s $3,000 giveaway are …
In case you didn’t already know, Kansas City startups are a generous bunch. Last week, Startland News asked if any area businesses wanted to participate in a giveaway for those attending the Kansas City Startup Crawl. In true startup fashion, our idea for a giveaway came at the last minute — three days before the…
Digital Sandbox coaches for pitching, funding this summer
School may be out for the summer, but class will soon be in session for area entrepreneurs. The Digital Sandbox KC’s “Summer in the Sand” series has returned for its fourth year of entrepreneurial education and networking. The program — which will feature one event per month from June to September — offers participants the…
Survey dissects area investors’ challenges, interests with startup deals
A recent survey of high-net-worth investors in the Kansas City area has found that most could benefit from independent due diligence and improved communication with other investors. The survey — conducted by KCSourceLink and the Alternative Investment Forum spoke with 80 area investors about their activities in early-stage investment. Mark Meyerdirk, founder of the Alternative…
Meet the new ambassador of area techies: The KC Tech Council
The organization formerly known as KCnext has announced a rebrand that will make it a fully-independent organization focused on tech workforce development, advocacy and industry access. The newly-formed KC Tech Council announced its name change Friday, marking its departure from the Kansas City Area Development Council. While still partnering with the regional economic development group, the…