Qualified investors and high-tech small businesses can now make use of Delaware’s angel investor program.
The Delaware Division of Small Business is now accepting applications for the Angel Investor Tax Credit (AITC) at www.business.delaware.gov/incentives.
The program is aimed at aiding the state’s start-up community, which has long taken note about a lack of financial options By contrast, neighboring Chester County, PA and other areas in the region have more options.
“We are excited to have the Angel Investor program up and running,” said Gov. John Carney. “Now the state’s most cutting-edge small businesses can connect with much needed sources of capital investment. The influx of funds Angel Investor will create will help these companies and Delaware’s new economy to grow.”
Once a business or investor has submitted a certification application, the Division begins its review process. In January, certified companies and investors will be able to submit credit allocation requests.
“Angel Investor is a great way for the state to spur economic development and another useful tool for our Division as we work to help small businesses succeed in Delaware,” said Damian DeStefano, director of the Division of Small Business.
The AITC is a refundable tax credit worth up to 25 percent of the investment in a qualified, Delaware-based company. Businesses must pay “decent wages, employ fewer than 25 people and engage in innovation in one of several areas as its primary business activity,” a release stated. More information on investor and business qualifications is also available at www.business.delaware.gov/incentives.
“Delaware’s new angel investor tax credit is a win/win for high-tech and science start-ups as well as investors. Delaware is home to some of the nation’s most innovative start-ups and now with Delaware’s new Angel Investor Tax Credit, science and high-tech entrepreneurs have even more incentive to choose Delaware to grow their businesses,” said Kurt Foreman, CEO of Delaware Prosperity Partnership.
“Growing entrepreneurial startups is a key success factor for the growth of the life sciences industry in Delaware,” said Helen Stimson, CEO of Delaware BioScience Association. “Having an Angel Investor Tax Credit program improves our competitiveness for entrepreneurial retention. Coupling the program with our unique technical grant writing support from the SBDC, and Delaware’s very attractive R&D tax credit program creates a strong value proposition for why startups should stay in Delaware.”
