"RELEASE: CT angel investor tax credit bill passes House of Representatives"
Milford, CT (April 7, 2017) -- A bill that would expand investment eligibility under the state's angel investor tax credit program passed the House of Representatives on Wednesday. The measure passed 144-0 with 5 absent and not voting, according to the Connecticut General Assembly’s website.
In response, Brett Broesder, co-founder and vice president of Campaign for Tomorrow’s Jobs, said that angel investors bring much-needed capital to startups, as well as wisdom and experience, often playing a mentor role with companies in which they've chosen to invest.
“Here's the bottom line: We need to grow Connecticut's economy, and by expanding eligibility under the angel investor tax credit program – a pro-growth, pro-job creation measure – we can show that our state means business when it comes to winning the competition for tomorrow's jobs,” said Broesder.
A public hearing on House Bill 5583 was held on February 23, and the bill was approved unanimously by the General Assembly’s Commerce Committee on March 16.
Prior to the House of Representatives voting on the bill Wednesday, Commerce Committee Co-Chair Representative Caroline Simmons held a press conference in support of the bill.
At the press conference, Representative Simmons said: “With every angel investment, 3.6 jobs are created and these investments will go directly to local jobs in our communities.”
The bill, which still needs approval from the senate and the governor, will open the angel investor tax credit program to businesses in any industry, instead of just those in specified technology industries, according to analysis from the Office of Legislative Research.
If the senate passes the bill and it’s signed by the governor, it will go into effect July 1.
Here is additional information about the importance of angel investors:
- Angel investors have contributed to 270,200 new jobs annually, nationwide, according to the University of New Hampshire’s Center for Venture Research.
- Angel investors contributed a total of $24.6 billion – averaging $345,390 per deal – in 2015, according to the University of New Hampshire’s Center for Venture Research.
- Startups funded by angel investors are nearly 25 percent more likely to survive for up to three years and to grow employment by 40 percent over non-angel funded startups, according to a Harvard Business School and MIT Sloan School of Management study.
- Since 2010, when Connecticut introduced its angel investor tax credit, more than 200 investments by 90 angels in over 50 companies have benefitted from the program, according to the New Haven Register.
For more information on expanding investment eligibility under the state's angel investor tax credit program, click here: http://bit.ly/2nR25io.
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