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
UMKC-powered tech could help visually-impaired Kansas Citians see via artificial intelligence
Gharib Gharibi is driven to succeed by a desire to pay it forward, he said, riding a high from his startup’s first-place, $20,000 win at UMKC’s Regnier Institute Venture Creation Challenge. “They helped us transform our technology from the computer lab to the real world,” Gharibi, founder of DeepLens and a UMKC PhD student, said…
iWerx Gladstone opens, expanding Northland coworking community (Photos)
Northland startups and business owners need more collaborative workplaces to call their own, Bob Martin said less than a year ago. This week, iWerx Gladstone turns that vision into reality. “More than just a place to work, iWerx Gladstone is a business development center committed to making connections and stimulating personal and professional growth,” said…
Look inside (and out): Corrigan Station expansion offers startups skyline views from within Crossroads
Decades have passed since the last new office building opened in the Crossroads Arts District, said Edna Martinson. In a matter of weeks, startups and small businesses can “create their own vibe” when the 22,910-square-foot Corrigan Station expansion project — led by Copaken-Brooks — unlocks its doors and opens them to Kansas City innovators, added Martinson,…
$18M buyout of TomboyX shares shows investing in women pays off, says Women’s Capital Connection
Women are winning in Kansas City, said Kelly Sievers as 24 members of Women’s Capital Connection receive their return from an $18-million buyout of their shares in a Seattle woman’s startup. “They’re getting a great infusion of capital to grow even more and we also still have money in the company because we invested a…