Earn A $2,000 Tax Credit using the Illinois Angel Investment Credit Program

Illinois Angel Investment Credit Program

The Illinois Angel Investment Credit Program is designed to offer a tax credit to interested firms or natural person(s) who make an investment in one of Illinois' innovative, qualified new business ventures. The investment will encourage job growth and expand capital investment in Illinois. The program can offer a tax credit to qualifying firms in an amount equal to 25% of their investment made directly in a qualified new business venture. The maximum amount of an investment that may be used as the basis for a credit under this section is $2,000,000 for each investment directly in a qualified new business venture. An awarded tax credit may not be sold or otherwise transferred to another person or entity. Businesses desiring to be registered as a qualified new business venture shall submit a registration form in each taxable year for which the business desires registration. The registration will attest to the fact that the business is principally engaged in innovation, their business headquarters is located in Illinois and their business has the potential for increasing jobs and capital investment in Illinois. Interested firms or natural person(s) desiring a tax credit based on their investment in a qualified new business venture must submit an application to the Department which attests to the fact that an investment has been made and remains in the qualified new business venture for no less than 3 years.

Program Description The Illinois Angel Investment Credit Program is operated by the Illinois Department of Commerce and Economic Opportunity.  Based on a review of a written registration form submitted by an interested firm, the Department is authorized to designate qualified new business ventures as "eligible." Firms and/or natural person(s) desiring a tax credit based on their investment in a qualified new business venture shall receive a tax credit certificate upon satisfactory review by the Department. The amount of tax credit is calculated on a case-by-case basis, based on the amount of investment made directly in a qualified new business venture. While the tax credit may not exceed the taxpayer's Illinois income tax liability for the taxable year, the credit may be carried forward for up to 5 years following the excess credit year. About the Angel Investment Tax Credit Eligibility Each business desiring to be registered as a qualified new business must have its headquarters located in Illinois, at least 51% of the employees must be employed in Illinois, the business must have the potential for increasing jobs and capital investment in Illinois, it must be principally engaged in innovation, it has fewer than 100 employees at initial time of registration, it has been in operation in Illinois for not more than 10 consecutive years prior to the year of certification and it has received not more than $10,000,000 in aggregate private equity investment in cash or $4,000,000 in investments that qualified for tax credits. An eligible business must be registered with the Illinois Secretary of State’s Office to be authorized to do business in Illinois. If the registration form is approved, the Department will notify the business in writing. Interested firms or natural person(s) desiring a tax credit based on their investment in a qualified new business venture must submit an application to the Department which attests to the fact that an investment has been made and remains in the qualified new business venture for no less than 3 years. Upon satisfactory compliance with registration guidelines, the Department shall provide the qualified firm and/or natural person(s) with a tax credit certificate. The maximum amount of tax credits to be issued under the Act is capped at $10,000,000 per calendar year. *If the $10 million in allocated tax credits have been issued prior to January 1st, then DCEO will not accept any additional claimant applications for the remainder of that particular calendar year. Then, the Department will begin accepting new claimant applications beginning January 1st based only on new investments which are made from that date, going forward. Tax credits will be awarded to interested firms and/or natural person(s) who adhere to the program requirements on a first-come, first-serve basis. Available Tax Credits (Per Calendar Year) 2011: $0 2012: $0 2013: $6,595,222 Qualified New Business Venture List (PDF) Forms Registration Instructions to Qualify New Business Venture New Business Venture Application Re-Registration Form for Qualified New Business Venture Registration Instructions to Apply to be a Claimant Claimant Application Annual Attestation of Investment for Claimant Claimant Instructions - How to Claim Angel Tax Credit For the specific program language in the law that establishes this program (Public Act 097-1097 - 35/ILCS 5/220 Sec. 220), please click:  Illinois Angel Investment Public Act 097-1097 For more information, including a list of qualified new business ventures, simply go online to: http://www.commerce.state.il.us/dceo/Bureaus/Business_Development/Tax+Assistance/AngelInvestment.htm Email: angelinvestment@illinois.gov Call: 217-557-0513 or TDD 800-252-2923 John Dussman is Midwest Manager for VillageProfile.com, working with chambers in Arkansas, Illinois, Indiana, Kentucky, Michigan and Missouri. More than 1500 Chamber of Commerce all over the United States have trusted Village Profile to produce their Membership Directories, Community Profiles, Visitor Maps and Publications, Economic Development magazines and Chamber of Commerce Maps. Contact John at (800)-600-0134 x239.