The state of Kansas offers an Angel Investor Tax credit to stimulate capital investments from accredited investors to a Qualified Kansas Business. The tax credit is 50% of the investment up to $250,000 per year, but limited to $50,000 for each company invested in. The program allots $6 million in tax credits a year through 2021. Below are guidelines for the investment.
Qualifying Investment
- Any form of equity, such as:
- A general or limited, partnership interest;
- common stock;
- preferred stock, with or without voting rights, without regard to seniority position, and whether or not convertible into common stock; or any form of subordinate or convertible debt, or both, with warrants or other means of equity conversion attached; or SAFE Note
- A debt instrument, such as a note or debenture that is secured or unsecured, subordinated to the general creditors of the debtor and requires no payments of principal, other than principal payments required to be made out of any future profits of the debtor, for at least a seven-year period after commencement of such debt instrument’s term; and
- All Convertible Debt Agreements will need to comply with K.S.A. 74-8132(i)(2).
How do I apply for the Kansas Angel Investor Tax Credit?
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.
