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
LaunchKC winner Boddle Learning scores $100K AT&T Aspire investment, accelerator
Kansas City-based Boddle Learning is filling with steam as the startup gains momentum and joins the AT&T-fronted Aspire accelerator, Clarence Tan revealed Wednesday. “When we found out we were finalists, we were super, super happy,” Tan, founder and CEO, said of the lead-up to official word of Boddle’s selection for the San Francisco-based program. “They…
Rise Up, Get Started competition set to award $1,500 grants; showcase paths from prison to founder
“We took someone’s car at gunpoint,” recalled Marcus Bullock. “It was about a week after my 15th birthday. I was 15 years old and I trembled at the thought of — not a judge —but to be honest, because I had to stand in front of a phone and call my mother and feel her…
KC’s woman-led startups selected for global summit; founders credit hustle, persistence
What started as an opportunity to meet interesting people and showcase innovative ideas to investors has turned into a once-in-a-lifetime shot at elevating five of Kansas City’s women-led startups on an international stage, said Shea Geist, beaming. “My husband made the application and I was like … ‘Whatever, it’s a million to one chance,’ so…
Big Fly Gear takes the field with vintage feel, historic ties to Kansas City baseball
Signing off his live broadcast, Los Angeles Angels broadcaster Victor Rojas receives a phone call. A fresh order of prints — featuring Hank Aaron’s “755” — have just shipped. The Overland Park native’s apparel startup, Big Fly Gear, has been growing steadily since its launch in February, Rojas said. The clothing line, fittingly, celebrates historical…