Attn: Illinois Business Owners,

Originally scheduled to expire at the end of 2016, Illinois has extended the Illinois Angel Investment Credit through 2021 with a few key changes.  Similar to the original law, investors receive a tax credit equal to 25% of their investment (up to $2M) in a Qualified New Business Venture (QNBV).  The credit offsets a taxpayer’s Illinois income tax liability; unused credit is carried forward for up to five years.  The Illinois Department of Commerce and Economic Opportunity (DCEO) administers the program and annually allocates $10M of credits to qualified investors, with up to $1M reserved for certain classes of minority-owned businesses and those located in rural counties.