HB3844 Summary

• Extends the angel investment tax credit for qualified new business ventures through December 31, 2021 (previously set to expire December 31, 2016).

• Increases the annual aggregate limit on angel investment tax credits from $10,000,000 to $20,000,000 per calendar year.

• Allows investors to claim a tax credit equal to 25% of direct investments made in qualified new business ventures, with a maximum investment basis of $2,000,000 per venture.

• Requires qualified businesses to have headquarters in Illinois, employ at least 51% of workforce in-state, and be engaged in innovation-focused sectors (manufacturing, biotechnology, clean energy, software, etc.) or pre-commercialization research activities.

• Permits carry-forward of unused credits for up to 5 years and requires Department of Commerce and Economic Opportunity to provide annual reporting to the Governor and General Assembly on credits awarded.