AB 25

Under current law, an individual may claim an income tax credit equal to 25

percent of the individual's angel investment in a qualified new business venture, as

determined by the Department of Commerce (Commerce). Under this bill, an

individual may claim an angel investment credit equal to 40 percent of the

individual's investment if the qualified new business venture has received no more

than $1,000,000 in bona fide angel investments, including the individual's

investment, after the bill's effective date.

Under current law, a person who is eligible to receive an early stage seed

investment tax credit may transfer the credit to another taxpayer if the person

notifies Commerce and the Department of Revenue (DOR) of the transfer and

submits the transfer documents with the notification. No person may transfer an

early stage seed investment credit more than once in a 12-month period and

Commerce may charge the person a fee for the transfer equal to 1 percent of the credit

amount.

Under this bill, an individual who is eligible to receive an angel investment

credit may transfer the credit to another taxpayer if the person notifies Commerce

and DOR of the transfer and submits the transfer documents with the notification.

No person may transfer an angel investment credit more than once in a 12-month

period and Commerce may charge the person a fee for the transfer equal to 1 percent

of the credit amount.