Effective August 9, 2017, and pursuant to HB2191 (53rd legislature, 1st regular session) amending A.R.S. § 41-1518, the ACA may certify $2.5 million of tax credits annually (plus any unused credits from prior years) from July 1, 2017 through June 30, 2021 for qualified investments made in qualified small businesses. As of 11/16/20 all funding for the Angel Tax Credit has been allocated.
As of July 1, 2021 the Angel Tax Credit program has been extended and the ACA will be able to authorize $2.5 Million in tax credits each fiscal year for the next 10 years. The new funding will not be available until 9/29/2021. This means investments made on or after July, 1, 2021, can be used to apply for credits. The application will not be available until the funds are available on 9/29/2021 – please note that an investor must apply for the credits within 90 days of the their investment.
An overview of the program is provided below, but please feel free to also review the Summary and Guidelines (pending new rules available HERE) for additional information. The Program Manager is also available should you wish to be added to the list of individuals interested in staying abreast of any changes to the program, and to answer any questions you may have. Please be sure to indicate the Angel Investment Program as the subject of your inquiry.
The principal objective of the Angel Investment program is to expand early stage investments in targeted Arizona small businesses. The program accomplishes this goal by eliminating Arizona capital gains tax liabilities associated with the disposition of investments in small businesses certified by the ACA. To view the list of businesses that have been certified under this program please click here.
BASIC ELIGIBILITY REQUIREMENTS
A small business may be a “qualified small business” if it:
- Is a corporation, limited liability company, partnership or other business entity (Sole proprietors are ineligible)
- Maintains a portion of its operations in Arizona
- Has at least two principal non-administrative full-time equivalent employees who are Arizona residents
- Is not principally engaged in activities precluded by ACA
- Does not engage in activities that involve human cloning or embryonic stem cell research
- Does not have assets exceeding $10 million, exclusive of intellectual property and qualified investments
- Satisfies all other requirements
If you would like to be kept abreast of developments with the Angel Investment program, please click here to send an e-mail requesting such notification. Please be sure to identify Angel Investment as the program for which you would like notification.