Bill > S1444

This bill establishes an angel investment tax credit to encourage investment in Massachusetts small businesses, defining an "angel investor" as someone providing financing for a business's development and working capital, and a "small business" as an entity located in Massachusetts with fewer than 100 employees, at least 51% of whom are Massachusetts residents. The credit allows an angel investor to deduct 15% of the money they invest in a small business's "start-up expenses" (costs incurred before the business is operational), with the credit increasing to 25% if the small business is located in a designated economic target area. Any unused credit can be carried forward for up to three years, but the total amount of credits issued annually is capped at $10 million, decreasing to $5 million starting in 2015, with funding coming from surplus state revenue, and the credit program is set to expire on December 31, 2019.