To participate in Connecticut’s Cannabis Angel Tax Credit Program, an angel investor or an angel investor network must be an accredited investor as defined in the application. The program excludes venture capitalists, banks, savings and loan associations, trust companies, insurance companies and similar entities whose business activities include venture capital investments, as well as people who control 50 percent or more of the qualified business that will receive the investment.
An investment in a Qualified Cannabis Business (QCB) of $25,000 to $1,250,000 qualifies for a 40 percent credit toward a Connecticut income tax liability. The maximum credit allowed per investor is $500,000. A tax credit must be claimed in the taxable year in which the cash investment is made and may be carried over for five years. An investor may sell, assign or otherwise transfer a credit, in whole or in part.