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Applications for Kentucky Angel Investment Fund Tax Credit Now Available

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Commonwealth of Kentucky
Cabinet for Economic Development

Contact:
Joe Hall
502.564.4886

FOR IMMEDIATE RELEASE

Applications for Kentucky Angel Investment Fund Tax Credit
Now Available
Angel investors can recover up to half their investment

FRANKFORT, Ky. (Dec. 15, 2014) – Investors now have another good reason to invest in Kentucky’s small and startup companies. Applications for the Kentucky Angel Investment Fund Tax Credit are now available through the Kentucky Cabinet for Economic Development.

The Kentucky Angel Investment Fund Tax Credit allows angel investors – people who provide capital for startup companies – to receive tax credits. Qualified investors can receive a tax credit of up to 50 percent of their investment in counties with high unemployment rates, or enhanced counties, and 40 percent in all other counties.

“We’re excited about the potential for this program to help small businesses grow and thrive in Kentucky,” said Gov. Steve Beshear. “While the tax credit goes to the investor, entrepreneurs also benefit by attracting additional investment funds to help their business move to the next level. It truly is a win-win for the investor and our small business community.”

Earlier this year, Gov. Beshear and the General Assembly expanded the angel tax credit legislation so individual angels can take advantage of the credits. Under the old legislation, only groups of angel investors (with fund managers) were eligible. The credit will be available in the 2015 tax year for investors who invest in eligible Kentucky small businesses. Angel investors, small businesses and planned investments must be approved by the Cabinet prior to investment to be eligible for the tax credit.

Out-of-state investors can take advantage of the credit too. Though out-of-state investors may not have any Kentucky tax liability, they can transfer that tax credit to someone else within the Commonwealth. If a Kentucky taxpayer is willing to purchase the credit, the investor will recover some portion of the investment.

The angel tax credit is operated through the Office of Entrepreneurship within the Kentucky Cabinet for Economic Development. Funds are limited, so both investors looking for an approved small business and businesses wishing to be approved for investment should apply as soon as possible.

Additional program information, including a fact sheet and application forms, is available at www.thinkkentucky.com/kaitc.

Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.

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The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2013 totaled more than $3.3 billion, spurring more than 14,000 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.

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