An Act Expanding The Applicability Of The Angel Investor Tax Credit.
Impact
The proposed changes would allow investors to claim a tax credit equivalent to twenty percent of their cash investment in an emerging technology company. Furthermore, for investments made in woman-owned or minority-owned businesses, or businesses located in federally designated opportunity zones, the credit increases to twenty-five percent. This aims to promote inclusive economic growth and support businesses that may have historically faced challenges in securing funding.
Summary
SB00836 aims to expand the applicability of the angel investor tax credit in the state by amending section 12-704d of the general statutes. The bill seeks to make the angel investor tax credit applicable against the corporation business tax for cash investments made in the qualified securities of emerging technology businesses. This is presented as a way to incentivize investments in sectors that may drive economic development and technological advancement in the state.
Contention
There is potential for contention surrounding this bill, particularly regarding the effectiveness of tax incentives in creating meaningful economic opportunities. Proponents argue that expanding the angel investor tax credits will stimulate investment in underrepresented businesses and sectors, creating jobs and driving innovation. Opponents may question whether such tax incentives effectively address systemic barriers faced by minority-owned businesses or if they simply provide benefits to investors without guaranteeing positive outcomes for economic equity.
An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.