Welcome to the Connecticut Angel Investor Tax Credit Program Web site
The State of Connecticut launched a program in 2010 that allows Angel Investors to take a credit against Connecticut State income tax for certain investments made in qualifying businesses. Investments must be at least $25,000 in order to be considered under the Program and the income tax credit equals 25% of the cash investment, up to a maximum credit of
$250,000.
Connecticut Innovations, Inc., a quasi-public authority, administers this program on behalf of the State.
Qualified Connecticut Businesses
Certain Connecticut businesses may qualify to participate in the Angel Investor Tax Credit Program. In addition to its principal place of business being in Connecticut, in order to qualify a business must be engaged in one of the following business areas: bioscience; advanced materials; photonics; information technology or clean technology.
A business must also have:
- gross revenues under $1 million in its most recent income year;
- fewer than 25 employees (includes shareholders, members, or partners active in company operations), at least 75% of whom are Connecticut residents;
- operated in Connecticut for less than seven consecutive years; and
- received less than $2 million in eligible investments from angel investors.
Additional information about these qualifying requirements is available on the Qualified Connecticut Business Application.
Eligible Angel Investors
Angel Investors are eligible to participate in the Angel Investor Tax Credit Program if considered an “accredited investor” as defined in Section 15(1) of Public Act No. 10-75 or a network of such investors. Angel Investors do not include:
- an individual who controls 50% or more of the qualified business receiving the investment;
- a venture capital company; or
- any bank, savings and loan association, trust, insurance company, or similar entity whose normal business activities include venture capital investments
Additional information about these eligibility requirements is available on the Angel Investor Certification/Request for Tax Credit Reservation Form.