Go

 
 

Governor Pat Quinn
Guest


Section Menu

 
 

Tax Credits and Compliance

Tax Credits to Grow Your Business

Recognizing that small businesses are the backbone of the Illinois economy, Governor Quinn has created a number of tax credits and incentives to boost your business. Click on the tabs below to see how they can benefit you. 

BizDrop The Angel Investment Tax Credit Program

What is the Angel Investment Program?

The Angel Investment Tax Credit Program is a two part program developed to encourage continued job growth in Illinois’ innovative business sector and expand capital investment. This tax credit is available to both businesses interested in receiving angel investments and the angel investors.

About the Tax Credit:

  • Equal to 25% of the investment (up to $2 Million)
  • Can be taken against income tax liability
  • If the amount of credit exceeds the tax liability for the year, the excess credit may be carried forward 5 taxable years.
  • An Angel Investor may not sell or otherwise transfer a tax credit awarded.
  • The Angel Investment Program is annually capped at $10 million worth of tax credits.
  • Tax credits issued, are first-come, first-serve.

Which Businesses Are Eligible?

  • Have fewer than 100 employees at the time a business submits an application to officially be registered with DCEO as part of the Angel Investment Program.
  • Have not been in operation in Illinois for more than 10 consecutive years prior to original registration.
  • Have their headquarters in Illinois.
  • Have at least 51% of their employees, employed in Illinois.
  • Have not received more than $10 M in aggregate private investment in cash or $4 M in investments that qualified for tax credits under this section.
  • Have the potential for increasing jobs or capital investments in Illinois or both.

Eligible, Qualified Businesses Must:

Be principally engaged in innovation in these sectors:

  • Manufacturing
  • Biotechnology
  • Nanotechnology
  • Communications
  • Agricultural sciences
  • Clean energy creation or storage technology
  • Medical devices
  • Pharmaceuticals
  • Computer Software-Hardware
  • Semiconductors
  • Other innovative technology products

Eligible, Qualified Business Must Also:

  • Conduct research that is principally reliant on applying proprietary technology.
  • Develop or have developed a new product that is principally reliant on applying proprietary technology.
  • Develop or have developed a new business process that is principally reliant on applying proprietary technology.
  • Develop or have developed a new service that is principally reliant on applying proprietary technology.

Which Businesses are Ineligible?

  • Real estate development
  • Insurance
  • Banking-Lending
  • Lobbying-Political Consulting
  • Professional services provided by attorneys
  • Accountants
  • Business consultants
  • Physicians-Healthcare consultants
  • Wholesale or Retail trade
  • Leisure-Hospitality
  • Transportation
  • Construction (except construction of power production plants that derive energy from a renewable energy resource)

Who Can Be an Angel Investor?

  • Businesses, corporations, partnerships, limited liability companies making investment in registered, qualified business
  • Individual(s) who have made an investment in a registered, qualified business
  • Investment must be kept in a registered, qualified business for no less than 3 years.
  • Income taxes must go to the State of Illinois.
  • Provide supporting documentation (copies of invoices, cancelled checks, appraisals, receipts, etc).
  • In good standing with the Illinois Department of Revenue.
  • Registered Angel Investors will need to annually complete and submit a provided form which will attest to the fact that their investment remains in the qualified business.

How to Get Registered:

  1. Request an application by emailing angelinvestment@illinois.gov.
  2. Mail the completed application to DCEO.
  3. DCEO’s review panel will make a determination on the applicant’s program eligibility and notify in writing.
  4. Business’ contact information & a brief description placed on DCEO’s web site for Angel Investors to review.
  5. Registered Angel Investors will receive a tax credit certificate with their letter. The certificate displays the monetary amount of eligible tax credits. The credit shall be applied to the earliest year for which there is a tax liability.

Registration Review Process:

  • Interested, innovative Illinois businesses or Angel Investors desiring program registration, shall submit a request to our email: angelinvestment@illinois.gov.
  • Registered businesses will be notified in writing. The registered business’ contact information and brief business description will be placed on DCEO’s website.
  • Registered Angel Investors will be notified by a letter of eligibility and a tax credit certificate.
  • Registered businesses must submit an application to DCEO in each taxable year they wish to be registered.
  • Registered Angel Investors will need to keep their investment in a registered business for no less than 3 years (attested by paperwork annually).

For complete program details and to request applications visit www.commerce.state.il.us/dceo/ External link opens in a new window

Still Have Questions?

Contact the Angel Investment Tax Credit Program
Phone:(217) 557-0513 Email: angelinvestment@illinois.gov

External Address (Url)
 Flash Animation1
To control the size of the flash movie, you can use the property window and replace the description with the width and height in parenthesis. For ex (300, 400)



Rate this Page


5 rates / 4.6 average.




ILWorkNet on Twitter

Follow us:  Illinois workNet on Twitter  Illinois workNet on Facebook  Illinois workNet on YouTube

values: no - before after

Footer

Copyright © 2006 - 2012 Illinois Department of Commerce and Economic Opportunity

Illinois workNet Centers are an equal opportunity employer/program. At Illinois workNet Centers, auxiliary aids and services are available upon request to individuals with disabilities. All voice telephone numbers on this website may be reached by persons using TTY/TDD equipment by calling TTY (800) 785-6055 or 711.