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Think Kentucky: Angel Investment Tax Credit repeats success in Year Two; applications open for next year


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The Kentucky Angel Investment Tax Credit program’s second year looks similar to its inaugural campaign as it once again matched a large number of investors with Kentucky startups in need of financial assistance.

The program, administered by the Office of Entrepreneurship within the Kentucky Cabinet for Economic Development, encourages growth among the state’s startups and small businesses.

Applications for the 2017 Kentucky Angel Investment Tax Credit will be accepted starting Monday, Dec. 12.

As was the case in 2016, the program will offer a total of $3 million in tax credits, available on a first-come, first-served basis. Individual investors are limited to $200,000 in credits annually.

In 2016 through the end of November, 98 qualified angels made 108 investments. In exchange for their support, investors receive state tax credits – up to 50 percent of investments made in companies based in enhanced-incentive counties with high unemployment rates, and 40 percent for all other counties.

It’s not only Kentuckians providing assistance to Kentucky companies, however.

Nearly 40 percent of the Kentucky Angel Investment Tax Credit’s 2016 investors hailed from outside the state. They represented nine states and Canada.

Though out-of-state investors are often not able to directly use Kentucky tax credits, they can sell their credits to buyers in the Commonwealth. Since the program first became available in January 2015, more than one in three investors – 63 of 181 – have been from outside the state.

To be eligible for tax credits, angel investors and small businesses must first be approved – or qualified – by the Cabinet prior to the investment. Applications to become a qualified investor or a qualified small business are accepted on an ongoing basis.

For more information, visit www.thinkkentucky.com/kaitc.


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