The New York State Senate has approved a bill that creates an angel tax credit for those who invest in certified startup-business enterprises.
State Senator John DeFrancisco (R–Syracuse) announced the approval on Thursday.
The bill authorizes the state’s commissioner of economic development to certify startup-business enterprises in targeted industries and technologies and allocates $7 million in angel-tax credits annually.
The minimum investment is $100,000 and is capped at $1 million per individual small business, according to DeFrancisco’s office.
Small businesses in New York are at a “disadvantage” to those located in other states which offer economic-development programs and tax credits supporting business development, DeFrancisco said in a news release.
“The angel tax credit provides an incentive for investment to keep New York small businesses growing,” the Republican added.
More than 20 states have implemented programs to attract and retain investment capital using tax credits. The angel tax credit will help create a “business-friendly tax environment that promotes private investment within emerging businesses,” DeFrancisco’s office said.
The New York State Assembly is now considering the legislation.
Contact Reinhardt at ereinhardt@cnybj.com