Nebraska Angel Tax Credit Program opens to investor applications
In June, Gov. Dave Heineman (third from left) and other business and political leaders discussed the Talent and Innovation Initiative at Hayneedle headquarters. Today, the DED outlined steps for implementing part of that initiative. Photo by Michael Stacy.
The Nebraska Department of Economic Development (DED) today outlined implementation steps for the new Angel Investment Tax Credit Program (LB 389). Investors can start applying today for certification to be eligible for a 35-40 percent refundable state income tax credit for investment in certified Nebraska startups. The bill goes into effect Sept. 1.
The Angel Investment Tax Credit Program (AITC) is part of the Talent and Innovation Initiative supported by Gov. Dave Heineman and approved by the Legislature in May. The initiative aims to advance business innovation and strengthen workforce recruitment efforts in Nebraska. A total of $3 million in tax credits is available per calendar year through AITC. The AITC is intended to attract $7.5-$8.5 million in new private equity investments to high-tech startups annually.
To qualify, certified individual investors must invest at least $25,000 per year. Certified investment funds must invest a minimum $50,000 per year and include at least three investors.
Qualified small businesses are those based in Nebraska with 25 or fewer employees at the time of investment (51 percent of employees must work in Nebraska). Qualified high-technology fields include information technology, materials science technology, nanotechnology, telecommunications and medical device products.
The maximum tax credit allocation limit for investment in any single business is $1 million, and maximum credits allowed for tax filing investment purposes are $350,000 for married couples filing jointly and $300,000 for single filers. The percentage of refundable tax credits allowed is 40 percent in targeted, and 35 percent in non-targeted areas.
To access the guidelines and application forms, visit www.neded.org/AngelInvestmentTaxCredit.
For our previous coverage of the legislation, including a special, four-part series from Tom Chapman, director of entrepreneurship and innovation for the Greater Omaha Chamber of Commerce, and commentary from Dusty Davidson, co-founder of Silicon Prairie News, see:
- "Legislators OK Angel Investment Tax Credit, other startup incentives"
- "Guest Post: An Angel’s take on the Nebraska Angel Incentive Legislation"
- "Gov. Heineman proposes Angel Investment Tax Credit"
- "Special Series Wrap Up & Thoughts: ‘Talent and Innovation Initiative’"
- "Special Series: ‘Talent and Innovation Initiative’ - Angel Tax Credit Act"