Illinois Gov. Pat Quinn recently signed legislation approving a new tax credit to encourage angel investment and extending the state's R&D tax credit one more year. The Innovation Development and Economy Act (SB 2093) allows eligible angel and early-stage institutional investors to take a 25 percent tax credit on investments in small, technology firms. Up to $2 million may be claimed on an individual investment for a $500,000 tax credit. The program is capped at $10 million and will be effective on Jan 1, 2011.
Passed unanimously by the Illinois General Assembly, SB 3655 extends the state's R&D tax credit for one more year. The provision allows for a tax credit equal to 6.5 percent of qualifying expenditures that increase R&D activities in Illinois. These expenditures include, for example, technological and experimental research whose purpose is to develop new or improved components, functions, performance, reliability or quality.
SB 2093 is available at: http://ilga.gov/legislation/publicacts/96/PDF/096-0939.pdf.
To read the full, original article click on this link: SSTI Weekly Digest for the week of June 30, 2010