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
Missouri’s best breweries are in Kansas City (and they have the medals to prove it)
Two Kansas City brewers barreled through the competition earlier this week, earning the first-ever, statewide “Brewery of the Year” honors for local favorites Boulevard and BKS Artisan Ales. It’s a feat fermented through years of dedication by the teams behind the labels, both brewers said. “From the day we opened, we have kept balance with…
World Cup readiness event opens City Hall to entrepreneurs hoping to get on the roster
Kansas City wants to score as many points as possible when the FIFA World Cup arrives in 2026, said Janá Wagner, emphasizing that a special event planned Tuesday during GEWKC aims to get businesses into the game now — playbook in hand. “Our goal is to help as many entrepreneurs as possible get properly licensed,…
10 top event picks for GEWKC; build your own schedule from 60+ sessions
With dozens of events on the calendar for GEWKC, Union Station will be bustling with activity, said Callie England, noting organizers intentionally curated a week where attendees can’t go wrong — no matter how they fill out their itinerary. “While the schedule can feel full, it’s truly the best of the best,” said England, director of…
How AI changes the the founder code: ‘This is all moving faster than anyone expected’
New tech opportunities — like artificial intelligence — hold the potential to equalize the Kansas City region among more established startup hubs, investment leaders said Thursday, but to fully take advantage, entrepreneurs who want strong, lasting companies must have a fire inside them. Not to mention grit. “Several really incredible entrepreneurs said, ‘I think the one…