LANSING ? Angel investors would be eligible for Michigan tax credits of up to $250,000 a year under the so-called angel tax credit signed into law Tuesday by Gov. Jennifer Granholm.
Under HB 5921 , PA 235, taxpayers would receive an income tax credit worth 25 percent of an investment in a qualified small business. To receive the credit, the investment would have to be at least $20,000 and be certified by the Michigan Strategic Fund. The strategic fund can certify up to $9 million in credits in a single year, with up to $250,000 for each small business.
“Increasing access to capital is a major component of our strategy to diversify our economy and create jobs,” Granholm said in a statement. “This legislation moves Michigan forward by encouraging new investment in companies that are critical to our economic vitality. We continue to work to improve our business climate to help entrepreneurs and innovators future here, and the Legislature deserves praise for taking swift, bipartisan action to help us do that.”
Rick Galdi, president of Great Lakes Angels, said the tax credit should encourage more high net worth individuals to join accredited angel groups and make investments in promising Michigan technology start ups.
?Money is the life blood of start ups, so the more money available for investment activities, the more companies ? and jobs ? we can create in Michigan,? Galdi said.
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