By Patrick Yeagle
Illinois renewed a tax credit last week aimed at spurring investment in new technology companies.
The previous “angel investment” tax credit expired at the end of last year, but on Aug. 24, Gov. Bruce Rauner signed a law renewing it through 2021.
Angel investment loosely refers to individuals or groups using their own money to fund new ventures. It often, though not exclusively, fills an investment niche in which small ventures need funding at levels below what a venture capital firm would typically fund.
Public Act 100-328 reinstates the 25-percent tax credit for investments of between $10,000 and $2 million in new businesses focused on innovation in a variety of tech-related fields, from computers to biotechnology. The businesses must have their headquarters in Illinois and must have at least 51 percent of their employees here, among other provisions.
The new law sets aside a maximum of $10 million in state funds for the tax credits, earmarking $500,000 of that money for investment in businesses headquartered in rural counties and another $500,000 to investment in business owned by minorities, women and people with disabilities.
The bill passed both chambers of the Illinois General Assembly unanimously.
Contact Patrick Yeagle at firstname.lastname@example.org.