iBIO and PROPEL applaud Governor Rauner, together with the Illinois House and Senate, for approving SB 2012 reauthorizing and extending the Illinois Angel Investment Tax Credit to December 31, 2021.
The Angel Investment Tax Credit Program expired on December 31, 2016. It offered a tax credit to qualifying firms in an amount equal to 25% of their investment made directly in a qualified new business venture. The Angel Investment Program was capped annually at $10 million worth of tax credits.
SB 2012 extends the credit until December 31, 2021 and makes several other related changes to the credit and to the program.
Some of the additional changes include additional reporting requirements, expanding eligibility to investments made in minority-owned businesses and counties with a population with not more than 250,000 where the qualified new business venture is located.
“Since 2011, the Angel Investment Tax Credit Program has provided more than $30 million in early-stage investments for more than 30 Illinois life sciences start-ups, including one-third from PROPEL’s portfolio,” says John Conrad, Executive Vice President, iBIO, “Startup companies like Endotronix have been able to leverage the Angel Investment Tax Credit Program to raise significant funds and create new jobs in Illinois.”
“The Illinois Angel Investment Tax Credit Program was critical to the growth and success of Endotronix,” says Endotronix CEO and Co-Founder, Harry D. Rowland. “Several years ago we faced pressure to take advantage of tax programs and early stage support from other states. The allure of funding almost took us out of state. Fortunately, the Angel Investment Tax Credit Program in Illinois served as a stimulus to several angel investment groups throughout the state. Investments from these Illinois angel investors at a critical time allowed Endotronix to achieve key technology milestones and laid the foundation for future growth of the company. We now have 50 employees and continue to grow.”
SB 2012 is a result of extensive discussions and negotiations among the Illinois Department of Commerce & Economic Opportunity, Lieutenant Governor’s Office and iBIO. As such, SB 2012 is supported by all of the aforementioned parties. iBIO would also like to recognize the congressional leadership from Senator Chuck Weaver, Representative Carol Sente, and Representative Elgie Sims.