Arizona’s Angel Investor Tax Credit Is a Tool We Should Be Using More

By Kyle Macdonald, COO of Silicon Oasis

I recently had a conversation with Steven Zylstra, President and CEO of the Arizona Technology Council, about Arizona’s technology ecosystem and how our organizations can work together to strengthen it.

One topic that stood out to me was Arizona’s Angel Investment Tax Credit.

It’s a tool I think more Arizona founders and investors should know about.

Through the Arizona Commerce Authority’s Angel Investment Program, investors who make qualifying investments into certified Arizona small businesses can receive an Arizona income tax credit equal to 30% of their investment. For qualifying bioscience companies and businesses headquartered in rural Arizona, that credit can reach 35%.

Put simply, a qualifying $100,000 investment into an Arizona startup could generate $30,000 in state income tax credits over three years.

That matters.

At Silicon Oasis, one of the biggest questions we think about is how Arizona gets more capital flowing into Arizona companies. We have incredible founders, major universities, world-class industries and a growing number of startups capable of becoming nationally significant companies.

But great ecosystems also need capital.

Part of the solution is attracting more venture firms and institutional investors from outside Arizona. Just as important, though, is activating the wealth that already exists here.

Arizona has successful entrepreneurs, executives, family offices and business owners who have the ability to become the next generation of angel investors. The Angel Investment Tax Credit gives them another reason to take that first meeting, write that first check and start backing Arizona founders.

If we want Arizona to become a top-five technology ecosystem, we need more Arizonans investing in Arizona innovation.

This is one tool that can help us get there.

Source: Arizona Commerce Authority — Angel Investment Tax Credit Program