KTEC Announces Positive Changes in Kansas Angel Investor Tax Credit Program
For Immediate Release
Contact: K. Pearl 785.296.3686
Topeka (July 16, 2007) – The Kansas Technology Enterprise Corporation (KTEC) has announced changes in the Kansas Angel Investor Tax Credit Program. The tax credit program developed as part of the 2004 Kansas Economic Growth Act allows an accredited investor a 50% tax credit on cash investments of up to $50,000 in a qualified Kansas business. House Bill 2004 has made the following changes to the Kansas Angel Investor Tax Credit Program, which became effective July 1, 2007:
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Eligible bioscience companies can now receive tax credits for the first 10 years of business, while IT companies will remain at the first five years. Total tax credits have doubled from $2 million in 2006 to $4 million in calendar year 2007. Permitted Investment entities allow tax credits to flow thru to individuals. Any investor who has not owed any Kansas state income tax for the immediate last three years nor owed Kansas state income tax the current tax year can sell or transfer credits. The transferee must be registered on the KansasAngels.com web site as an accredited investor. An investor is allowed $50,000 in tax credits per investment in a qualified business per year, and a maximum of $250,000 in tax credits per year.
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"We’re very excited about the success of the program to date,” said KTEC President and CEO Tracy Taylor. “Since 2005, investors in 23 Kansas companies have been awarded $3.8 million in tax credits. These companies have collectively raised over $36.9 million in capital and have provided more than 139 jobs in the state. Clearly, this is an indication of the impact a program like this has not only for Kansas entrepreneurs, but for the entire state.” The goal of the Kansas Angel Investor Tax Credit Program is to provide investors with tax credits against Kansas Income Tax liability, thereby fostering investments in seed and early-stage capital financing for emerging Kansas businesses. The program cultivates the development, implementation and commercialization of innovative technologies, products and services in Kansas. For companies interested in qualifying as a Kansas Business, or for information on how to apply for the credits, please visit http://www.kansasangels.com/ ### For more information about the Kansas Angel Tax Credit, visit www.kansasangels.com For more information about KTEC, visit www.ktec.com The Kansas Technology Enterprise Corporation (KTEC) is a private/public partnership established by the state of Kansas to promote technology based economic development. Through support of strategic research and development at our Centers of Excellence, through intense hands-on business assistance at our incubators, and through our equity investments in early-stage companies, KTEC serves as an invaluable partner to companies that bring economic growth to Kansas. Learn more at: www.ktec.com