Angel investors

Angel Investor Tax Credit Program
 

*Last updated: 7.13.17 – Applications for the Angel Investor Tax Credit Program will be processed after the state budget is approved.

How to Qualify

You can participate in the Angel Investor Tax Credit Program if you meet the definition of an accredited investor, or a network of accredited investors. Your investment of $25,000 to $1,000,000 qualifies you for a 25 percent credit on your state income tax. To be eligible, you must invest in a Qualified Connecticut Business (QCB).

Two-step approval process

First: Ask for a Tax Credit Reservation Number.

Reservation numbers are issued on a first-come, first-served basis, based upon when we receive your completed form. You will be notified of this approval by email. The process takes five to seven business days from the date we receive your application. Your Reservation Number will allow you to move forward with your investment transaction. It will expire 45 days from its issuance. Note: There is an annual limit to the amount of tax credits that CI can issue, so timeliness is crucial. Once you receive the number, you’re ready to invest.

Second: Register for an Angel Tax Credit Certificate.

All documents requested must be included with the form when it is submitted to CI. Once received, CI will process the request and issue the tax credit authorization document.

Please note that the following are not eligible to invest:

  • Venture capitalists
  • Banks
  • Savings and loan associations
  • Trusts
  • Insurance companies and similar entities whose business activities include venture capital investments
  • People who control 50 percent or more of the qualified business receiving the investment