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Angel Investing Jumps With State Tax Credit Change

"There is an explosion in entrepreneurship and people want to get in on it," said Matthew Nemerson, president of the Connecticut Technology Council, which started lobbying for a tax credit for angel investors more than five years ago. "The legislation came at the right time to throw fuel on the fire. Because of the $100,000 limit, the fuel [was] a little bit watered down."

"Thirty companies have gotten investments since a law took effect 18 months ago allowing investors who put at least $100,000 into young, small Connecticut firms in certain technology and science fields to deduct a quarter of that investment from their state income taxes.

Two months ago, the state loosened the angel investor tax credit to $25,000, and nine of the 30 deals have closed just since then, for a total of $2.1 million."

Read the full article by Mara Lee in today'sHartford Courant, http://cour.at/z3K09W


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