The Iowa Angel Tax Credit Program is expected to reach the Iowa House of Representatives to caucus on Monday. Support is critical for Entrepreneurship in Iowa.
Here is the Press Release from The Technology Association of Iowa:
The Technology Association of Iowa (TAI) strongly supports legislation (HF 688) to fund the Iowa Angel Tax Credit Program. Please help advance this bill by contacting your member of the House of Representatives now and urging a “Yes” vote.
HF 688 would leverage up to $10 million per year in new seed capital investments in Iowa-based small emerging businesses with high-growth potential. It would help incent capital formation at the earliest stage of company development, which is the most difficult capital to obtain. And it would target non-institutional investors for early stage companies – including friends and family, individual angels, angel groups and early stage funds.
FACTS:
- HF 688 authorizes IDED to award $2 million annually in angel investment tax credits for investments made in Iowa businesses with a net worth of $5 million or less.
- In a very recent development, supporters of HF688 have worked with Director Debi Durham and crafted an amendment to the bill that also authorizes $10 million in Innovation Fund investment tax credits.
- These Innovation Fund tax credits would be awarded to create a pool under the new Economic Development Authority structure and made available for early stage investments in promising Iowa-based companies.
- Both of these investment tax credits would be set at 20% of a qualified investment and the redemption delayed to the 3rd tax year following the year of investment.
- Both of these investment tax credits would fall under the $125 million IDED tax credit cap, meaning these credits would NOT expand the amount that the legislature has already authorized IDED to award annually.
- For more background, please see recent coverage the Des Moines Register.
ASSIGNMENT:
- Please contact REPRESENTATIVES ONLY at this time. Find your Representative here: http://www.legis.iowa.gov/Legislators/find.aspx
- Urge a “YES” vote for BOTH House File 688 (the Angle Investment Tax Credit) – AND – the Innovation Fund investment tax credits amendment.
- Deliver any intelligence you learn from these contacts so that we can make strategic maneuvers next week.
- If successful in the House, we will then need to repeat this effort again in the Senate.
URGENCY: The legislature is already into overtime. These contacts must be made NOW. The House of Representatives is expected to caucus on this issue next Monday. If we haven’t made sufficient amount of contacts by then, we are in jeopardy of losing.
If you have any questions about HF 688 and/or its amendment, please contact TAI lobbyist Mark Joyce at iowa.lobby@gmail.com or 515-238-8860.