Area investors and startups can still apply for the state’s recently approved Angel Tax Credit.
The Angel Tax Credit benefits investors by connecting them with prequalified early-stage companies, which lowers risk and boosts return. It also encourages early-stage capital formation where it is most needed, according to Launch Tennessee, which is promoting the credit, partly because it can benefit the state’s entrepreneurial ecosystem.
The credit is up to $50,000 to be applied to the Hall income tax liabilities of angels who invest in prequalified startups.
So far, $1.1 million in credits has been issued, but there’s $1.9 million left to be issued by the end of the year. That money goes away if no one qualifies by the deadline.
The maximum number of credits a single angel investor can use for any given tax year is $50,000, though unused credits can be carried forward. The credit may be retroactively applied if both the investor and company are qualified by Dec. 31.
So far, 43 angels have applied. Thirty-nine companies and 46 investors have been approved.
Click here for more background from the Nashville Post.