(See section 133(14) of Connecticut Senate Bill No. 1201) Click Bill No. 1201
Cannabis Angel Investor
In 2021, Connecticut established the Cannabis Angel Tax Credit Program for qualified angel investors who invest at least $25,000 in a Qualified Cannabis Business (QCB).
The program offers annual tax credits of $15 million for $37.5 million of investments (which is equal to a 40 percent tax credit against a Connecticut tax liability). The program runs from July 1 to June 30 of the fiscal year and expires on June 30, 2028.
A person(s) who has applied for a social equity license for a cannabis establishment that is at least 65 percent owned and controlled by an individual or individuals who:
(A) had an average household income of less than 300 percent of the state median household income over the three tax years immediately preceding the application; and
(B) (i) was a resident of a disproportionately impacted area for not less than five of the 10 years immediately preceding the date of such application; or (ii) was a resident of a disproportionately impacted area for not less than nine years prior to reaching 18 years of age.
A cannabis business that has been granted a license or a provisional license from the Social Equity Council.
The Social Equity Council is a 15-member organization whose goal is to ensure that the state’s cannabis program is grown equitably and that funds from the program are returned to the communities that have been hit the hardest by the War on Drugs.
Application Process Administered by Connecticut Innovations
If your business meets the first set of requirements, your business is eligible to apply to the Cannabis Angel Tax Credit Program. You must meet the following additional requirements:
- Gross revenues of under $1 million in the most recent income year.
- Fewer than 25 employees with at least 75 percent of employees who are Connecticut residents.
- Primarily owned by the management of the business and their families.
- Received less than $2 million in eligible investments from angel investors. Cannabis companies, or “establishments,” are defined as: a producer, dispensary facility, cultivator, micro-cultivator, retailer, hybrid retailer, food and beverage manufacturer, product manufacturer, product packager, delivery service or transporter of cannabis.
Step 1 (to be performed by the Qualified Cannabis Business Applicant)
Submit the Qualified Cannabis Business Application including the documents requested under Part E via Adobe Sign to the link below.
Connecticut Innovations will review the application for completeness and program criteria.
Connecticut Innovations will email the QCB within 15 business days regarding the application status.
A business that is approved as a QCB will receive an email confirmation and will be posted on the Qualified Cannabis Business List, located below (check back for updates), which publishes:
• Company name, location and contact information
• Business activity
• Amount of the investment you’re seeking
• The type of qualified security you’ll issue investors
A business that is not approved as a QCB will receive an email outlining the reasons it did not meet the program criteria.
A Qualified Cannabis Business is required to recertify upon the anniversary of its application approval date to remain a Qualified Cannabis Business for the Cannabis Angel Tax Credit Program.
$25,000 / $10,000
$50,000 / $20,000
$100,000 / $40,000
$250,000 / $100,000
$500,000 / $200,000
$1,000,000 / $400,000
$1,250,000 / $500,000
Qualified Cannabis Company List
Carl Tirella, Jr.
Allows angels an opportunity to receive a tax credit by investing in a Qualified Connecticut Business.
Interested applicants must complete and execute the Qualified Cannabis Business Application. The application along with all documents requested under Part E of the application and the nonrefundable application fee of $250 must be submitted to Connecticut Innovations, Inc.