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
IXKC: Want top talent in Kansas City? Stop talking about yesterday (Photos)
Kansas City already has what it takes to recruit and keep top talent, Neal Sharma told Wednesday’s Innovation Exchange crowd. What the metro seems to lack is the confidence to boast about itself, he added. Sharma, CEO and co-founder of DEG, a full-service digital agency in Overland Park that has grown to about 300 employees,…
State of the City: Mayor challenges startup community to be more inclusive in hiring
As a growing piece of Kansas City’s business fabric, the startup community should better reflect the diverse creative and tech talent working within the city, Mayor Sly James said Tuesday following his State of the City address. “There are a lot of entrepreneurs who, for example, make bow ties, who make clothing, who do things…
Predictive tech gives KCMO smart weapons in the fight against potholes, crime
Kansas City is tackling its pothole problem using technology that aims to predict where they’ll emerge next, city officials said. The proactive approach also is targeting Kansas City’s crime rate. Government officials from Kansas City, Missouri, shared details about their experience with smart, predictive technologies during a panel discussion Tuesday afternoon at the Smart Cities…
Investing in the arts earns KC designation as UNESCO’s only ‘City of Music’ in US
Landing on a United Nations agency’s City of Music list reflects more than Kansas City’s century-old link to American jazz, said Jacob Wagner. “This designation is a recognition of our investment and commitment to music, arts and creativity as a driver of urban economic development,” said Wagner, faculty director of the Center for Neighborhoods at…