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
StartupGrowKC bootcamp: Building smart and intentional teams alongside ECJC
Founders can expect to emerge from the Enterprise Center in Johnson County’s StartupGrowKC bootcamp series with greater knowledge of the skills needed to grow their business, said Kathryn Golden. “[Founders will see] the fuller life cycle of what they will need to consider [to be successful],” said Golden, programs manager at ECJC, a nonprofit organization…
Startup leader hears calling in Kauffman legacy, selected to join Kauffman Foundation trustees
Money alone won’t truly satisfy an entrepreneur, nor will it build a stronger Kansas City, said Matt Condon — lessons learned from the late Ewing Kauffman. “Having a successful company isn’t good enough,” said Condon, a veteran startup leader who recently completed a year as chair of the Greater Kansas City Chamber of Commerce. “Impacting…
The Nerdery powers down, exiting Kansas City in move to consolidate investments
Once topping Inc. Magazine’s fastest-growing companies list, The Nerdery is now pulling back — closing its Kansas City office and redirecting the paths of 28 metro employees, the company revealed this week. “This decision is by no means a reflection of the performance of the team in Kansas City, who have all done a fantastic…
SafetyCulture executing fireproof growth strategy from new Crossroads US HQ
A recent move placed SafetyCulture into the largest fireproof building in KC — a choice reflecting the startup’s customer-centered approach, said Ross Reed, noting the building’s more-than-a-century-old history was an added plus. “iAuditor helps organizations prioritize safety and quality,” said Reed, president of SafetyCulture’s KC-based North American branch. “If construction companies can show they they…