Cabinet for Economic Development
Applications for Kentucky Angel Investment Fund Tax Credit Now Available
Angel investors can recover up to half their investment
FRANKFORT, Ky. (Dec. 15, 2014) –
Investors now have another good reason to invest in Kentucky’s small and
startup companies. Applications for the Kentucky Angel Investment Fund Tax
Credit are now available through the Kentucky Cabinet for Economic Development.
The Kentucky Angel Investment Fund
Tax Credit allows angel investors – people who provide capital for startup
companies – to receive tax credits. Qualified investors can receive a
tax credit of up to 50 percent of their investment in counties with high
unemployment rates, or enhanced counties, and 40 percent in all other counties.
excited about the potential for this program to help small businesses grow and
thrive in Kentucky,” said Gov. Steve Beshear. “While the tax credit goes to the
investor, entrepreneurs also benefit by attracting additional investment funds
to help their business move to the next level. It truly is a win-win for the
investor and our small business community.”
this year, Gov. Beshear and the General Assembly expanded the angel tax credit
legislation so individual angels can take advantage of the credits. Under
the old legislation, only groups of angel investors (with fund managers) were
eligible. The credit will be available in the 2015 tax year for investors who
invest in eligible Kentucky small businesses. Angel investors, small businesses
and planned investments must be approved by the Cabinet prior to investment to
be eligible for the tax credit.
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.
tax credit is operated through the Office of Entrepreneurship within the
Kentucky Cabinet for Economic Development. Funds are limited, so both investors
looking for an approved small business and businesses wishing to be approved
for investment should apply as soon as possible.
Additional program information,
including a fact sheet and 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.