CT SB00307

Establishes a 25% tax credit for accredited investors who make cash investments in qualified Connecticut businesses, capped at $125,000 per investor, with an aggregate annual cap of $6 million for fiscal years 2010-2012 and $3 million thereafter, expiring July 1, 2020.

Defines eligible Connecticut businesses as those with less than $5 million in annual gross revenues, fewer than 25 employees (more than half residing in Connecticut), operating less than 10 years, primarily owner-managed, and receiving less than $1 million in eligible investments.

Requires Connecticut Innovations, Incorporated to approve qualified businesses and maintain monthly lists; allows investors to reserve tax credits with the Commissioner of Revenue Services and permits credits to be transferred to other taxpayers with proper notification.

Modifies Connecticut Innovations' board to include one member from an angel investor group and establishes a Sidecar Investment Fund program providing matching grants (up to 50% match, max $250,000 per company) for preseed and seed financing by angel investors.

Expands early-stage venture capital program to include matching funds for federal small business innovation research grants, allocating at least 10% of funds for this purpose with grants up to $50,000.