Bill > HB350

This bill, known as the Angel Investor Tax Credit Act, aims to encourage investment in Alabama's startup companies by offering tax credits to "qualified angel investors," which are individuals or pass-through entities (like LLCs or S-corps) making cash investments for equity or debt in "qualified businesses." A qualified business is defined as a company headquartered in Alabama, with 100 or fewer employees, operating for 10 years or less, and primarily engaged in specific sectors like manufacturing, technology development, or agricultural technology, but not retail, real estate, or financial services. The act establishes a tax credit of 25% of the investment amount, with a cap of $250,000 per investor annually, and sets overall annual limits on the total credits issued, with a significant portion reserved for "priority impact businesses" that focus on areas like rural healthcare, agriculture, education for high-need students, workforce development, or housing affordability. The credits are available for tax years 2027 through 2031, and the Department of Commerce will oversee the program, requiring documentation and reporting to ensure compliance, with provisions for recapturing credits if certain conditions, like the business relocating or the investment being sold within three years, are not met.

Budget and Finance

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