WASHINGTON DC – While twenty states, including Michigan, now offer tax credits or other support to qualified angel investors, several members of Congress are examining ways that Washington can help create incentives for angel investing.
Congressmen Don Manzullo (R-IL) and Earl Pomeroy (D-ND) have recently introduced H.R. 5198, the Access to Capital for Entrepreneurs (ACE) Act of 2006. This legislation would create a 25 percent tax credit for individual angel investors or partnerships that invest in qualified small businesses. The credit would be available for investments up to $250,000.
Another take on the angel investing issue comes from Congresswoman Nydia Velazquez (D-NY). Along with numerous colleagues, the minority leader of the House Small Business Committee has introduced H.R. 4565, the Angels Nurture Growing Entrepreneurs into Long-Term Success (ANGELS) Act of 2006. H.R. 4565 would create a new Office of Angel Investment at the Small Business Administration.
In addition to promoting angel investing as an innovative practice, the Office would make investments (of up to $2 million) to qualified angel groups. Both bills have a long path toward final passage, but they serve as an indication of Congress? growing interest in supporting entrepreneurship.
