HB 1057 Summary

• Taxpayers receive a 45% tax credit on investments in certified angel funds, with a maximum annual credit of $45,000 and lifetime limit of $150,000 per individual, married couple, or passthrough entity.

• Angel funds must invest in a portfolio of at least three early-stage or mid-stage companies (revenues up to $2 million for early-stage, $2-10 million for mid-stage) and consist of at least six accredited investors with minimum $500,000 in committed capital.

• Investment must remain at risk in the angel fund for at least three years; unused credits may be carried forward for four to seven succeeding taxable years.

• For the first two taxable years after December 31, 2010, passthrough entities and taxpayers may elect to sell, transfer, or assign credits to other purchasers, subject to limits of $100,000 per transferor and 50% of aggregate fund credits.

• Tax commissioner must report to legislative management during 2011-12 and 2013-14 interims on in-state and out-of-state investors, investment amounts, and tax credits accrued, claimed, and transferred by each angel fund.