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The Illinois Angel Investment Program exists to draw investment dollars into early-stage, innovative companies in Illinois. Companies that qualify for the program typically lack extensive access to capital raised from debt or equity investment. This program, administered by the Department of Commerce and Economic Opportunity, grants tax credits totaling $10 million per year on a first-come, first-served basis.

To qualify, the taxpayer must make an equity investment (debt instruments do not qualify) of no more than $2 million into a qualified new business venture. The credit is 25% of the investment. For example, if a taxpayer invests $100,000 into equity shares of a startup company located in Illinois, his or her credit is $25,000, which may be carried forward up to five years.

Specific restrictions related to the investment and the eligibility of new business ventures can be found here.

If you have recently made an equity investment in an early-stage company in Illinois and think you might be eligible, feel free to contact us for further discussion.