HB0445 Summary

• Increases maximum annual angel investment tax credit from $10,000,000 to $20,000,000, with $10,000,000 reserved for priority industries (those with high growth potential as determined by the Department).

• Reduces the ownership threshold for "related member" status from 50% to 33%, making it harder for investors to claim the credit if they have significant prior relationships with the business.

• Raises the tax credit for investments in disenfranchised community businesses from 25% to 40% of the investment amount.

• Excludes refinancing investments from eligibility for the credit and defines "legitimate business purposes" to prohibit use of proceeds for refinancing, dividends, stock repurchases, or other cash distributions.

• Authorizes the Department of Commerce and Economic Opportunity to charge a $500 application fee for angel investment credit certification.