HB 416 Summary

• Creates Angel Investor tax credit program allowing individual investors and qualified investment funds to claim a tax credit equal to 25% of qualified investments in Delaware technology companies, capped at $250,000 per investor annually.

• Establishes eligibility requirements for Delaware technology businesses including domicile in Delaware, at least 75% of employees based in Delaware, fewer than 50 full-time employees, and operation for no more than 10 years (or 20 years for FDA-regulated medical device/pharmaceutical companies).

• Requires minimum investment amounts of $10,000 for individual investors or $30,000 for qualified funds in exchange for equity interests in certified Delaware technology businesses.

• Imposes aggregate state cap of $5,000,000 in tax credits per fiscal year, with credits awarded on a first-come, first-served basis and excess amounts carrying over to the next fiscal year.

• Requires Angel Investors to report investment details to the Director within 3 months of claiming the tax credit, with authority to revoke credits for non-compliance; bill sunsets on January 1st of the fifth year after enactment.