As part of the Talent and Innovation Initiative, the Angel Investment Tax Credit Act provides refundable state income tax credits to qualified investors that invest in qualified early-stage companies.
Key elements of the Angel Investment Tax Credit Program:
- DED certifies qualified:
- individual investors - minimum investment of $25,000 per year
- investment funds - minimum investment of $50,000 per year, minimum of three investors
- DED certifies qualified small businesses:
- Nebraska-based with more than 51% of employees in Nebraska
- Shall have 25 or fewer employees at time of investment
- Maximum credits of $350,000 for couples filing joint return and $300,000 for single filers
- Maximum amount of tax credits allocated for investments in any one business limited to $1 million
- 40% refundable tax credit in Distressed Areas, 35% in Non-distressed
- Focus on high-tech businesses
There are $3 million available in total credits per year.
Applications will be accepted on an ongoing basis beginning August 10, 2011.
Allocations of certification for tax credits start September 1, 2011.
Effective April 11, 2013: Applications for Allocations of Tax Credits may be denied based on unavailability of Tax Credits.
Tax Credits may be returned from investors making Tax Credits available for re-allocation, therefore, applications continue to be accepted.
- Application for Certification as a Qualified Investor—Individual
- Application for Certification as a Qualified Investor—Trust
- Application for Certification as a Qualified Investor—Pass-through Entity
- Application for Certification as a Qualified Fund
- Application for Certification as a Qualified Small Business
- Application for Allocation of Tax Credits
- Notification of Qualified Investment
- Notification of Qualified Fund Investors
- Notification of Failure to Make Qualified Investment
- Notification of Qualified Small Business Insolvency
- Annual Report of Qualified Small Business, Qualified Investor, and Qualified Fund