Governor Steve Beshear's Communications Office
Angel Investment Tax Credit Already Helping Small Businesses

Press Release Date:  Thursday, February 05, 2015  
Contact Information:  Kerri Richardson
Terry Sebastian
502-564-2611
 


Angel Investment Tax Credit Already Helping Small Businesses

Forty investors approved for Kentucky Angel Investment Tax Credit in program’s first month

FRANKFORT, Ky. – Kentucky investors and small businesses are already reaping the benefits of the Kentucky Angel Investment Tax Credit.

In the program’s first month, 40 angel investors – people who provide capital for startup companies – announced plans to invest more than $2.8 million in 12 Kentucky businesses. As a result, the investors will be eligible for $1.1 million in angel investment tax credits – more than a third of the state’s allotted angel tax credits for 2015.

“This is a shining example of how Kentucky is proactively supporting our economy,” said Gov. Steve Beshear. “I’m excited to see so many investors capitalize on the opportunity to support small businesses and create more jobs. It’s truly a win-win for everyone involved.”

Last year, Gov. Beshear signed legislation allowing individual angel investors to receive tax credits. Previously, only groups of angel investors (with fund managers) could take advantage of the credits.

Individual angel investors can receive a tax credit of up to half of their investment in counties with high unemployment rates, or enhanced counties, and 40 percent in all other counties. Approved investors can claim the credits on their 2015 tax returns.

Out-of-state investors can take advantage of the credit, too. Though out-of-state investors may not have any Kentucky tax liability, they can transfer that tax credit to someone else within the Commonwealth. If a Kentucky taxpayer is willing to purchase the credit, the investor will recover some portion of the investment.

The expansion is designed to encourage more investment in Kentucky’s small businesses. The credit, in turn, is expected to spark more innovation, business creation and jobs.

“The response to the Kentucky Angel Tax Credit has been astounding,” said Mandy Lambert, commissioner of business development with the Kentucky Cabinet for Economic Development. “The program will go a long way toward helping businesses and investors for years to come.”

The angel tax credit is operated through the Office of Entrepreneurship within the Kentucky Cabinet for Economic Development. Additional program information, including application forms, is available at www.thinkkentucky.com/kaitc.

Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.

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