SB2012 Summary: Angel Investment Tax Credit

• Extends the angel investment tax credit program through December 31, 2021 (previously set to expire December 31, 2016), allowing investors to claim a 25% credit against Illinois income tax on investments in qualified new business ventures.

• Establishes minimum investment of $10,000 per venture and maximum of $2,000,000 per investor per single venture, with credits carried forward up to 5 years if they exceed annual tax liability.

• Requires investors to hold investments for at least 3 years (except in qualifying liquidity events) and qualified businesses to maintain minimum employment thresholds in Illinois for 3 years after the last tax credit certificate is issued.

• Limits total annual tax credits to $10,000,000, with $500,000 reserved for minority-owned, female-owned, or disability-owned businesses and $500,000 reserved for ventures in counties with populations under 250,000.

• Requires registered businesses to report employee counts, capital investments, and liquidity events annually for 3 years following credit issuance, with claimants owing back credits if investments are sold prematurely or businesses fail to maintain employment thresholds.