Denver, Colorado. August 30, 2014 – The Colorado Office of Economic Development and International Trade (OEDIT) announced that the online application process for the Advanced Industry Investment Tax Credit will be available at noon on Friday, September 5, 2014.
“Angel investments are critical ingredients that fuel innovation and new business creation in technology driven sectors like the Advanced Industries,” said OEDIT’s 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 $12.5M per year Advanced Industry Acceleration grant program.
Qualified investors who make qualified investments on July 1, 2014 or later in qualified small businesses in one of the seven Advanced Industries (Advanced Manufacturing, Aerospace, Bio-Science, Electronics, Energy/Natural Resources and Cleantech, Infrastructure Engineering, or Technology and Information) may be eligible for Colorado state income tax credits.
Credits will be granted on a first come first serve basis to qualified applicants based on the day and time their applications are received. During the calendar year 2014, up to a total of $375,000 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. 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
Investors are encouraged to apply as soon as possible after they make their investment, as the tax credit also requires the investee (the recipient company) to be certified. For more information visit www.advancecolorado.com/aitc.