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Thursday, October 11, 2012

Massachusetts Not So Heavenly for Angel Investors

In case you missed it, the Boston Globe recently ran a story saying that while angel investors – “high net-worth individuals who fund start-up businesses often in return for stock” – in the Boston area are investing in start-ups, Massachusetts still trails states like New York and California in total investors.

House Republicans have long realized the essential role that Angel Investors play in our economy and its recovery. That’s why when the House and Senate Republican Caucus’ unveiled their comprehensive GOP Jobs Package in February, we included a provision which would establish an Angel Investment Tax Credit.

Establish Angel Investment Tax Credit

• Provides Angel Investors with a tax credit of 15% of the amount of cash invested in a small business start-up.

• Increases investment tax credit to 25% if the start-up is located in an Economic Target Area; a low-income part of the state which has experienced major layoffs or has a commercial vacancy rate of at least 20%.

• Caps the total amount of credits at $10 million for the first 3 years, $5 million for the following 5 years, and expires at the end of 2019.

• Our goal with this provision is to incentivize entrepreneurs to start and build companies in the Commonwealth while improving the workforce and quickly improving economic activity.

Today's report that we are falling behind with these vital business investors could have been avoided if ideas proposed in the GOP Jobs Package were adopted by the Democratic-led Legislature. We encourage members of the majority party on Beacon Hill to dust off their copy of the GOP Jobs Package, and help us get to work in creating and fostering an entrepreneur and business-friendly environment here in Massachusetts. After all, Massachusetts’ families are counting on us, the Legislature, to help them get back to work by creating and fostering jobs within the Commonwealth.

To read the Boston Globe article in its entirety, see below.

Boston Globe Angel Investor Article