The Angel Tax Credit–What is it?

The so called “Angel Tax Credit” is part of the Illinois General Assembly and Governor Quinn’s effort to incentivize investment in the life science and biotech start ups.  The law was signed by Governor Quinn in June of 2010 and sets aside approximately ten million dollars to assist IL Angel investors that provide funds for start up companies that commercialize new technologies.

The Angel Tax Credit allows investors to take tax credits equal to twenty five percent of their investment.  However, the Angel Tax Credit is capped at a maximum of two million dollars.  The investments have to be made in new technology companies, such as biotechnology companies.  It is not clear, if this will be interpreted broadly to permit investment in other forms of new technology.

However, if you are any of the following:

1) an IL based Angel Investor;

2) a biotech company seeking capital;

3)  an individual that is looking for new investment opportunities; and/or

4) a biotech or medical professional looking for a new business opportunity,

then the Angel Tax Credit should be considered as part of your business, financial, legal and marketing strategies.  If you or someone you know of has any concerns or questions, relating to the Angel Tax Credit, then feel free to contact us.

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