January 11, 2017 – The Colorado Office of Economic Development and International Trade (OEDIT) today announced they are now accepting applications for the Advanced Industry Investment Tax Credit for 2017.
“Angel investments are critical ingredients that fuel innovation and new business creation in technology driven sectors like the Advanced Industries,” said OEDIT director of business funding and incentives, Jeff Kraft.
The Advanced Industry Investment Tax Credit is designed to stimulate private sector capital formation by rewarding local investors for taking equity stakes in start-up companies with high growth potential. The program targets technology sectors with a strong presence in Colorado, and is complementary to the Advanced Industry Acceleration grant program.
Qualified investors who make qualified investments on or after Jan. 1, 2017 in qualified small businesses in one of Colorado’s seven Advanced Industries may be eligible for Colorado state income tax credits. Credits will be granted on a first-come, first served basis. During the calendar year 2017, up to a total of $750,000 in credits may be awarded.
In order to apply for this credit, both the investor and the investee company will need to set up an account with OEDIT. An investor must make their investment in a certified company in 2017. The investment must be an equity security of at least $10,000. Convertible debt does qualify as equity for this program, and the investor must hold no more than 30% of the voting power before the investment, and less than 50% of the voting power after the investment.
In addition, the following information is required to complete the application:
Tax ID number and complete contact information for both parties
Form of business organization (corporation, LLC, partnership, etc)
Full information about the investment, including equity percentages
Detailed information about the investee, including revenue and funding history
An upload of the term sheet, capitalization table, and proof of funding
An upload of the articles of incorporation and a statement of good standing from the secretary of state
Colorado’s Advanced Industries include Advanced Manufacturing, Aerospace, Bio-Science, Electronics, Energy/Natural Resources and Cleantech, Infrastructure Engineering, or Technology and Information.