Over the past two months, NDH has successfully registered four Illinois start-up businesses as Qualified New Business Ventures under the Illinois Angel Investment Credit Program and has several additional applications pending. Under the program, qualified investors receive a tax credit equal to 25% of their investment (up to $2M) in a Qualified New Business Venture. The Angel Investment Credit offsets Illinois income from any source and is carried forward for up to 5 years. Illinois will allocate $10M of credits to qualified investors annually on a first come first serve basis through 2016. To qualify, businesses must have the following characteristics:
- Principally engaged in innovation
- Fewer than 100 employees
- Operating lifespan of less than 10 years
- Illinois headquarters
- At least 51% of employees located in Illinois
- Potential for increasing jobs or capital investment in Illinois
See https://www.illinois.gov/dceo/ExpandRelocate/Incentives/taxassistance/Pages/AngelInvestment.aspx for additional information.