SB 323 Summary

• Establishes a 25% tax credit for angel investors making cash investments in qualified Connecticut businesses, with a maximum credit of $125,000 per investor and annual statewide cap of $6 million for fiscal years 2010-2012, then $3 million annually thereafter, expiring July 1, 2020.

• Qualified investments must be in Connecticut businesses with less than $5 million in annual revenue, fewer than 25 employees, less than 10 years of operation, and receiving less than $1 million total in tax-credit-eligible investments.

• Requires Connecticut Innovations, Incorporated to approve businesses as qualified recipients and maintain a monthly list of approved applications; allows tax credits to be carried forward for five years if unused and permits transferability between taxpayers with proper notification.

• Establishes a Sidecar Investment Fund program providing matching grants to angel investors in early-stage companies, with 90% of investments matching angel funding and up to 10% reserved for university student entrepreneurs, capped at 50% match or $250,000 per company.

• Modifies Connecticut Innovations board governance to include one angel investor member and expands early-stage venture capital program to include Small Business Innovation Research Program matching funds of 10% allocation with grants up to $50,000 each.