Bill > S1598

This bill proposes to create an angel investment tax credit, which is a financial incentive for individuals who invest in new businesses. Specifically, it defines an "angel investor" as someone who provides funding for a business's development, refinement, commercialization, and working capital needs. A "small business" is defined as an entity located in Massachusetts with fewer than 100 employees, at least 51% of whom are Massachusetts residents. "Start-up expenses" are costs incurred before a business becomes operational. Under this bill, an angel investor would receive a tax credit equal to 15% of the money they invest in a small business for its start-up expenses, 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, and the total amount of credits issued annually will be capped between $5 million and $10 million, with funding coming from consolidated net surplus. This tax credit program is set to expire on December 31, 2021, and the commissioner will be responsible for creating regulations to implement it.