Gov. John Carney and legislators in the Delaware House of Representatives announced new legislation – the Angel Investor Job Creation and Innovation Act.
The bill would establish a refundable tax credit for qualified investors in Delaware-based small businesses, to spur job creation and innovation.
The legislation, House Bill 170, was filed on Wednesday and is sponsored by Rep. Michael Ramone.
Additional House sponsors include Reps. Bryon Short, Melanie George Smith, and Dave Wilson. Senate sponsors include President Pro Tem David McBride and Cathy Cloutier.
“We should do everything we can to support Delaware’s innovators and entrepreneurs who are leading Delaware’s new economy,” said Gov. John Carney. “This legislation would encourage investments in innovative, Delaware-based small businesses and connect our most talented entrepreneurs with the resources they need to be successful. Thank you to all the members of the General Assembly who are leading this important initiative.”
“If we in the state are serious about fostering economic development in Delaware, and I believe we are, then the Angel Investor Job Creation and Innovation Act must take effect sooner rather than later,” said Ramone. “The funding that would be available through this legislation is critical in helping scientific or technology small businesses get off the ground and begin operating. This will be the second time we have tried to enact such a measure. I introduced a similar bill last year and I am hopeful, that with the Governor’s support this year, we can enact this important bill.”
“Our future rests with people whose names we probably don’t even know, who are creating new breakthroughs in science and technology,” said McBride. “But those brilliant innovators need help to take their ideas from the drawing board into our homes and businesses. I think this bill creates an avenue to spur that growth and help keep Delaware’s place as a home of innovation and invention.”
“Government doesn’t create jobs, but it can provide incentives to build the businesses that do. I am very excited about this Angel Investor Job Creation and Innovation Act that could give that extra boost to so many of our promising startup companies,” said Cloutier. “I’m happy to put my support behind it.”
The Angel Investor Job Creation and Innovation Act would establish guidelines for awarding a tax credit worth up to 25 percent of the investment in a qualified, Delaware-based small business. Businesses receiving the investment must pay decent wages, employ fewer than 25 employees, and engage in innovation in one of several areas as its primary business activity.
Qualified business activities include:
- Using proprietary technology to add value to a product, process, or service in a qualified high-technology field
- Researching or developing a proprietary product, process, or service in a qualified high-technology field
- Researching, developing, or producing a proprietary product, process, or service in the fields of agriculture, manufacturing, wildlife preservation, environmental science, financial technology, or transportation
- Researching, developing, or producing a new proprietary technology for use in the fields of agriculture, manufacturing, financial technology, or transportation
The Angel Investor Job Creation and Innovation Act has been assigned to the Economic Development Committee in the Delaware House of Representatives.
