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
Rick Usher: How can KCMO balance policy and micromobility technology?
Update: On Thursday, KCMO City Manager Troy Schulte authorized Bird to deploy up to 500 scooters, as authorized in the city’s interim operating agreement. Editor’s note: Opinions expressed in this commentary are the author’s alone. This piece by Rick Usher was originally published by the National League of Cities, and comes days after Kansas City…
Hunting access to capital? Do your homework first, Techweek panel says
Imagining overnight startup success is as unrealistic as wanting to become a winning athlete or megastar musician overnight — it all takes time and practice, said Juan Campos. “If you actually have the ambition to create a multimillion dollar company, then the people that are the most successful at that didn’t just wake up one…
Real estate tech firm RealQuantum moving from bootcamp to LaunchKC stage
Lacking the sex appeal of tech and other high-growth, super-charged industries, the world of commercial real estate is ripe for change, said Jeff Weiner. LaunchKC competitor RealQuantum is ready to modernize that landscape, he said. “Serving a critical need that doesn’t really get a lot of attention is a really smart place to be and…
ShotTracker benchmark: KC tech gets waiver to be used courtside by coaches at Hall of Fame Classic
A score in the basket of history, Merriam-based ShotTracker has landed another monumental first, the company announced Tuesday, further positioning it as a leader in the Kansas City tech space. “ShotTracker is proud to drive this next stage of growth in college basketball,” Davyeon Ross, co-founder and COO said of the company’s latest NCAA collaboration…