Bill > S07592

This bill establishes an angel investor income tax credit in New York State for individuals who invest significant amounts in small, early-stage businesses. Specifically, the bill allows angel investors (defined as accredited investors under federal securities regulations) to receive a tax credit of 25% for investments of $25,000 or more in qualifying businesses, with a maximum credit of $250,000. To be considered a qualifying business, a company must meet several criteria: have gross revenues under $1 million, employ no more than 25 full-time workers (with at least 60% of employees in New York), have operated in the state for seven years or less, and have received no more than $2 million in angel investor investments. The bill explicitly excludes investors who control 50% or more of the business and traditional venture capital firms or financial institutions from qualifying as angel investors. If the tax credit exceeds the investor's tax liability for a given year, the excess can be carried forward to subsequent tax years. The tax credit will take effect for personal income tax years beginning on or after January 1, 2026, and is designed to encourage investment in small, emerging New York businesses by providing a meaningful tax incentive.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S7592