"RELEASE: Gov. Malloy signs angel investor bill into law (H.B. 5583)"
“This new law promotes investments that provide Connecticut startups with the capital necessary to create jobs, grow, and thrive right here at home.” – Brett Broesder, co-founder and vice president of Campaign for Tomorrow’s Jobs
Milford, CT (July 6, 2017) – Governor Malloy signed a bill (H.B. 5583) into law that supports small business growth in Connecticut by allowing investments in additional types of businesses to qualify for the state’s angel investor tax credit program, according to the governor’s bill notification number 12.
The new law, effective July 1, 2017, opens up the state’s successful angel investor tax credit program beyond specified technology industries, making it easier for small businesses to attract investments.
“This new law promotes investments that provide Connecticut startups with the capital necessary to create jobs, grow, and thrive right here at home,” said Brett Broesder, co-founder and vice president of the Campaign for Tomorrow’s Jobs. “Expanding eligibility under the state’s angel investor tax credit program not only helps startups attract additional investments, but it also increases a young company’s chances of survival and growth. That’s a win-win.”
Startups funded by angel investors are nearly 25 percent more likely to survive, and on average grow employment by 40 percent over non-angel funded startups, according to a study from Josh Lerner of Harvard Business School and Antoinette Schoar of the MIT Sloan School of Management.
In Connecticut, angel investors who invest at least $25,000 in approved businesses are eligible for a personal income tax credit equal to 25 percent of their investment, up to $250,000, according to the state’s Office of Legislative Research (OLR). A business must apply to Connecticut Innovations (CI) for approval to receive credit-eligible investments. CI then certifies that the company meets the applicable criteria (e.g., is principally located in the state, has been in operation less than seven years, and has less than $1 million in annual revenue).
The new law does not have a fiscal impact because it does not increase the cap on the total amount of credits available under the current program, nor does it extend the program's sunset date, according to the state's Office of Fiscal Analysis (OFA).
“Thanks to Governor Malloy for signing this bill into law,” said Broesder. “And, thanks to the General Assembly – especially Commerce Committee Co-Chairs State Representative Caroline Simmons, State Senator Joan Hartley, State Senator Scott Frantz, and Ranking Member State Representative David Yaccarino – for leading the charge on this pro-growth, pro-jobs measure.”
To read more about the new law, click here: http://bit.ly/2utTzKe.
To watch a video ad that ran statewide in support of the bill, click here: http://bit.ly/2r7dYoA.
About Campaign for Tomorrow’s Jobs
The Campaign for Tomorrow’s Jobs focuses on growing Connecticut’s economy for present and future generations in three key policy areas: workforce preparedness, business growth & innovation and fiscal sustainability. Read more at www.tomorrowsjobs.org.
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