Angel Investor Tax Credit Program
Updated Guidelines as of July 1, 2026:
Maximum Tax Credit
To help maximize the number of angel investors participating in the program, the maximum eligible investment in any one company from an accredited investor/household cannot exceed $400,000 (generating a tax credit of $100,000). The maximum aggregate tax credit available to any investor, across all investments and all taxable years, remains $500,000.
Reservation Priorities
In accordance with the program’s legislative framework, Connecticut Innovations prioritizes tax credit reservations for the following categories of Qualified Connecticut Businesses:
Emerging technology businesses, including those engaged in bioscience, advanced materials, photonics, information technology, and clean technology.
Veteran-owned, women-owned, minority-owned, and disability-owned businesses.
Companies with a positive economic impact on the State of Connecticut, including the number, location, and types of jobs expected to be created.
I'd like to become a Qualified Connecticut Business.
As a Qualified Connecticut Business, you are eligible to receive investments from accredited investors to help grow your business.
I'd like to invest in a Qualified Connecticut Business.
As an investor, you are eligible to receive a 25 percent tax credit against Connecticut’s state income tax when you invest at least $25,000 in qualifying businesses.
What is the Connecticut Angel Investor Tax Credit Program?
The Connecticut Angel Investor Tax Credit Program encourages investment in early-stage Connecticut businesses by providing eligible investors with a state income tax credit for qualifying investments in approved companies.
Who administers the program?
The program is administered by Connecticut Innovations (CI), which reviews applications, determines eligibility, reserves tax credits, and issues tax credit vouchers after qualifying investments are completed.
What is the purpose of the program?
The program is designed to:
- Encourage private investment in Connecticut startups and early-stage companies.
- Support business growth and job creation in high-growth industries.
- Help Connecticut companies attract capital needed to commercialize products and scale operations.
Who can apply for an Angel Investor Tax Credit?
Individuals and qualifying entities that meet the program’s eligibility requirements and make a qualifying investment in an approved Connecticut business may apply.
Do I need to be an accredited investor?
Yes. Investors must satisfy the applicable accredited investor requirements established by federal securities laws.
Are there any entities or persons not eligible to invest?
Yes, the following are not eligible:
- Venture capitalists
- Banks
- Savings and loan associations
- Trust companies
- 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
Can investment groups or LLCs qualify?
Certain investment entities may qualify if they meet program requirements. Each investment structure is reviewed as part of the application process.
Is there a minimum investment amount?
Yes. Investments must meet the program’s minimum qualifying investment of $25,000
Is there a maximum tax credit I can receive?
To help maximize the number of angel investors participating in the program, the maximum eligible investment in any one company from an accredited investor/household cannot exceed $400,000 (generating a tax credit of $100,000). The maximum aggregate tax credit available to any investor, across all investments and all taxable years, remains $500,000.
Can I make the investment and then get a reservation number?
No. Investors must obtain a tax credit reservation before completing a qualifying investment.
What happens if my investment does not close?
If the investment is not completed within 90 days of the approval date, the reservation expires and a new reservation request is required.
Can tax credits be transferred?
Tax credits may be transferable if permitted under current Connecticut law. Investors should consult applicable program guidance and tax advisors.
What businesses qualify?
A business must satisfy the eligibility requirements established by Connecticut law and Connecticut Innovations before investments qualify for the tax credit.
Generally, qualifying businesses must:
- Have gross revenues of under $1 million in the most recent income year.
- Have fewer than 25 employees, including shareholders, members or partners active in company operations.
- Have operated in Connecticut for less than seven consecutive years.
- Have at least 50 percent of employees who are Connecticut residents.
- Have received less than $2 million in eligible investments from angel investors.
Are all industry sectors eligible?
Most industry sectors are eligible.
Companies in emerging technology businesses, including those engaged in bioscience, advanced materials, photonics, information technology, and clean technology will be prioritized.
Does my business need to apply before investors invest?
Yes. Businesses must apply to become a Qualified Connecticut Business (QCB) and receive approval from Connecticut Innovations before investments qualify for the Angel Investor Tax Credit.
How do I reserve a tax credit?
Eligible investors submit a reservation request through Connecticut Innovations before completing their investment.
How long is a reservation valid?
Reservations remain valid for 90 days from the approval date. Investments must close before the reservation expires.
What documentation is required after closing?
Typically, investors and businesses must provide documentation demonstrating:
- Copy of the signed investor agreement documenting the investment
- Copy of the investor’s or entity’s wire transfer or check from the investor’s account with the account name visible
- Copy of the QCB’s bank statement showing the deposit(s) made with the QCB’s name on the statement
- Any additional documentation requested by Connecticut Innovations
When will I receive my tax credit voucher?
After Connecticut Innovations verifies that all program requirements have been satisfied, an official tax credit voucher will be issued within 15 business days.
When can I claim the credit?
The tax credit may generally be claimed on the applicable Connecticut income tax return after the voucher has been issued and all statutory requirements have been met.
How long does the approval process take?
Processing times vary depending on application volume and completeness. Complete applications with all required documentation are processed within 45 business days.
What happens if program funding is exhausted?
The program has a $20 million investment limit per CI’s fiscal year. Once available credits have been fully reserved, additional reservations may not be issued until additional capacity becomes available.
Can Connecticut Innovations deny an application?
Yes. Applications that do not satisfy statutory requirements or program guidelines may be denied.
What if my application is incomplete?
Incomplete applications may delay processing. Connecticut Innovations may request additional documentation before making an eligibility determination.
Does Connecticut Innovations provide tax advice?
No. Connecticut Innovations administers the program but cannot provide tax, legal, or financial advice. Applicants should consult their own tax advisor regarding eligibility and use of the credit.
Can unused tax credits be carried forward?
Carryforward provisions are governed by Connecticut law. The credit must be claimed or transferred within five years of issuance date. Investors should consult current statutes or their tax advisor regarding how unused credits may be applied.
Who should I contact if I have questions?
Email: Tamyra.Cote@ctinnovations.com
Please include your company name or reservation number when contacting the program regarding an existing application.
This FAQ is provided for informational purposes only. Eligibility is determined under Connecticut General Statutes, applicable regulations, and Connecticut Innovations program guidelines. In the event of any conflict between this FAQ and governing law, the governing law controls.