Angel Tax Credits

ks-department-of-commerceEntrepreneurship is important to the Kansas economy in many ways. There are more than 246,000 small businesses in Kansas. These businesses account for 35.1 percent of all Kansas businesses. In some cases, small businesses require assistance to get their ventures up and running.

The Kansas Department of Commerce has a specific program that helps with this. The Angel Investor Tax Credit program removes barriers that restrict businesses from accessing capital they need.

“The Angel Investor Tax Credit is one of the most important advantages entrepreneurs in the state of Kansas have to help their business succeed,” said Kansas Commerce Secretary Antonio Soave. “These credits have been responsible for helping businesses across Kansas receive the start-up capital they need to get their business off the ground.”

The Angel Investor program assists businesses by providing tax credits to qualified individuals who provide seed-capital financing for emerging Kansas businesses. These businesses much be engaged in development, implementation, commercialization of innovative technologies, products and services.

“Commerce is very proud of the Angel Investor program. This is a program that will help businesses that may have become leaders in innovation,” said Secretary Soave. “It will give new businesses a chance to start, helps already established businesses grow and ensures that Kansas businesses remain competitive in the global market.”

The success of the Angel Investor program has been profound. Between the years of 2005 and 2014, the program raised $345 million in capital, attracted $35.4 million in out-of-state capital investment, added or saved 1,584 direct jobs and has had an overall economic impact in excess of $484 million.

“From 2005 to 2014, for every $1 of tax credits issued as part of the Angel Investor program, $6.95 of capital was raised,” said Brett Sayre with the Kansas Department of Commerce. “In addition, companies receiving the Angel Investor Tax Credit reported $297 million in revenue during this time. This shows the Angel Investor program’s contribution to the state’s economy, while helping small businesses succeed.”

The credit issued in the Angel Investor Tax Credit program is 50 percent of the investors’ cash investment in the qualified security of a qualified Kansas business.

“The Angel Investor Tax Credit program is a tool the Kansas Department of Commerce uses to ensure the success of Kansas businesses,” said Secretary Soave. “The program’s success and the businesses that are assisted by it enhance the already robust entrepreneurial spirit in the state of Kansas.”

To apply for an Angel Investor Tax Credit, you must be certified as a qualified Kansas business. To review the certification process or for more information about the Angel Investor program, please contact the Kansas Department of Commerce at (785) 296-5272.