DE HB330

Establishes the First State Angel Investment Tax Credit Program under a new First State Angel Investment Council to provide tax credits for investments in early-stage Delaware small businesses.

Council comprised of 5 members appointed by the Director of the Delaware Economic Development Office, Secretary of Finance, and Governor (one from each county), each serving 2-year terms.

Qualified businesses must have annual gross revenues of $5,000,000 or less, assets not exceeding $2,000,000, commenced operations within 3 years, maintain at least 2 full-time employees in Delaware, and use investments for plant, equipment, research and development, or inventory.

Individual investors may receive tax credits for investments of $25,000 to $50,000 in approved businesses, with total certified investments per business capped at $150,000 and aggregate program credits capped at $2,000,000 by December 31, 2017.

Council authorized to revoke business qualifications or investor tax credit certifications for false material representations or violations of program conditions, with penalties of 100% of tax credits or certifications issued.