Steve Beshear
Governor
Old Capitol Annex
300 West Broadway Frankfort, KY 40601
Larry Hayes
Secretary
March 9, 2015
For Immediate Release
 
Joe Hall
502.564.4886


Kentucky Angel Investment Tax Credit Funds are Going Fast

Investors already approved for two-thirds of the money allotted for the Kentucky Angel Investment Tax Credit


FRANKFORT, Ky. (March 9, 2015) – The Kentucky Angel Investment Tax Credit is a hit among investors. Because of the strong interest, investors wanting to apply should act soon because of the limited funds still available.

In the program’s first two months, 64 angel investors – people who provide capital for startup companies – announced plans to invest $5.4 million in 17 Kentucky businesses. As a result, those investors are eligible for $2.1 million in angel investment tax credits after making their approved investments. That’s more than two-thirds of the state’s allotted angel tax credits for all of 2015.

“The response to the Kentucky Angel Investment Tax Credit has been astounding,” said Mandy Lambert, commissioner of business development in the Kentucky Cabinet for Economic Development. “At this rate, we anticipate the funds allotted for the entire year will be awarded in the very near future, so I would encourage any interested investors to apply quickly. It’s exciting to see so many investors supporting Kentucky’s new enterprises.”

Last year, Gov. Beshear signed legislation allowing individual angel investors to receive tax credits. Previously, only groups of angel investors (with fund managers) could take advantage of the credits.

Individual angel investors can receive a tax credit of up to half of their investment in counties with high unemployment rates, or enhanced counties, and 40 percent in all other counties. Approved investors can claim the credits on their 2015 tax returns.

Out-of-state investors are taking advantage of the credit, too. Though out-of-state investors may not have any Kentucky tax liability, they can transfer that tax credit to someone else within the Commonwealth. If an individual Kentucky taxpayer is willing to purchase the credit, the investor will recover some portion of the investment.

The expansion is designed to encourage more investment in Kentucky’s small businesses. The credit, in turn, is expected to spark more innovation, business creation and jobs.

The angel tax credit is operated through the Office of Entrepreneurship within the Kentucky Cabinet for Economic Development. Additional program information, including application forms, is available at www.thinkkentucky.com/kaitc.

Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky. Watch the Cabinet’s “This is My Kentucky” video on YouTube.

The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2014 totaled a state record $3.7 billion, spurring more than 15,000 projected new jobs. The Commonwealth also received Site Selection magazine’s nationally acclaimed Governor’s Cup for most economic development projects per capita last year. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.

Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky. Watch the Cabinet’s “This is My Kentucky” video on YouTube.

The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2015 totaled a state record $5.1 billion, spurring more than 16,000 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.