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
Kauffman survey: Women more critical of their own early-stage entrepreneurial efforts
Women entrepreneurs are more likely than their male counterparts to grade their performances harshly during the first year of business, though that tendency typically fades over time, according to a new survey by the Ewing Marion Kauffman Foundation. It often is about approaching the venture a realistic viewpoint, said Jeff Shackelford, executive director of Digital…
Video: ShotTracker fan app courts NAIA tourney crowds with AR experience
A new ShotTracker fan app — expected to launch today — will combine real-time analytics with augmented reality for a first-of-its-kind fan engagement opportunity at next week’s Division 1 NAIA basketball tournament, said co-founder Davyeon Ross. “We want to make the experience as great as possible for the end user,” Ross said, noting his company’s…
TechAccel, UC Davis lab developing wheat seed to combat climate change
A Kansas City-based tech and venture development firm hopes to engineer wheat seeds that produce higher yield by withstanding warmer temperatures. “We’re taking a concept that is pretty important for wheat worldwide,” said Brad Fabbri, Chief Science Officer of TechAccel. Increasing temperatures make growing wheat more difficult across the globe, studies show. Reports indicate climate…
Startup stakeholders: Opportunity zones could prompt culture shift on redevelopment
Startup community stakeholders think opportunity zones in some of Kansas City’s poorest areas could work, but only with collaboration between the government and private sector. A number of low-income communities in Kansas City are eligible for designation as opportunity zones — areas in which investors may defer paying capital gains taxes over a certain period…