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Tax Credit for Angel Investors Funding Early-Stage Technology Startups

This law introduces a new income tax credit for individuals who invest in small, innovative US technology companies. Qualified accredited investors can claim a 25% credit on their investment amount, aiming to boost funding for early-stage startups. This benefit is capped at $250,000 annually per taxpayer and is subject to a national limit of $500 million per year.
Key points
Accredited individual investors can receive a tax credit equal to 25% of their investment in qualifying high-tech startups.
The maximum credit available to any single taxpayer per year is capped at $250,000.
To retain the credit, the investment must be held for at least 3 years; otherwise, the tax benefit must be repaid (recaptured).
Eligible businesses must be small (under 25 employees, less than $1M revenue) and operate in specific high-technology sectors (e.g., software, biotech, clean technologies).
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Additional Information
Print number: 118_S_4809
Sponsor: Sen. Murphy, Christopher [D-CT]
Process start date: 2024-07-25
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OFFICIAL LEGAL TITLE

Angel Tax Credit Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4809.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-07-25.

What are the main provisions?

Key points include:

  • Accredited individual investors can receive a tax credit equal to 25% of their investment in qualifying high-tech startups.
  • The maximum credit available to any single taxpayer per year is capped at $250,000.
  • To retain the credit, the investment must be held for at least 3 years; otherwise, the tax benefit must be repaid (recaptured).
  • Eligible businesses must be small (under 25 employees, less than $1M revenue) and operate in specific high-technology sectors (e.g., software, biotech, clean technologies).
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Murphy, Christopher [D-CT].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Economy