HB 386 Summary

• Establishes the First State Angel Investment Tax Credit Program under a new First State Angel Investment Council to encourage equity financing for small businesses in Delaware.

• Creates a 5-member Council appointed by the Director of the Delaware Economic Development Office, Secretary of Finance, and Governor (1 member per county) to certify eligible businesses and investors.

• Allows qualified investors to claim Delaware income tax credits of up to $50,000 per investment (minimum $25,000) in approved small businesses with annual revenues of $5 million or less, assets not exceeding $2 million, and operations commenced within 3 years.

• Limits total tax credit certifications to $2 million aggregate with no certifications issued after December 31, 2014; investments must remain at risk for at least 5 years and cannot exceed 30% of total voting stock per investor.

• Takes effect January 1, 2013.