State Policies to Catalyze Angel Investment

Several states have instituted tax credit programs for angel investors. Below are a few papers and analysis of the programs. Please visit the Existing State Programs page for links to relevant Web sites for individual states, often with links to the applications or forms needed to participate. Please note that the programs are very different by state, with a wide variety of details involved. It should also be noted that most of the tax credits are on income, and because some states do not have income tax, the credits would not work in every state.

Specific questions about individual state tax credit programs should be directed to the states, using contact information included in Web links. If you are aware of additional materials or states that should be included on this page, please contact Marianne Hudson or Public Policy Leadership Chair Christopher Mirabile.

Overview and Analysis

Financing SMEs and Entrepreneurs: A 2016 OECD Scoreboard
Organisation for Economic Cooperation and Development, 2016

The Costs and Benefits of Early-Stage Business Tax Credits: A Case Study of Two US States
Krista Tuomi and Barbara Boxer, article in Venture Capital: An International Journal of Entrepreneurial Finance
June, 2015

Angel Tax Credits: What Do the Reports Say About Job Creation?
Ken Kousky and Krista Tuomi, ACA Angel Insights Blog
April, 2015

Angel Tax Credits: What Makes Good Policy? (includes survey of states)
Krista Toumi and Barbara Boxer, presentation at 2014 ACA Summit
March, 2014

An Evaluation of the Venture Capital Program in British Columbia
Thomas Hellman and Paul Schure, paper prepared for Ministry of Small Business, Technology and Economic Development
June, 2010

Matrix of States Offering Angel Investment Tax Credits
Angel Resource Institute (from paper by Ezugo Nwosu, Carnegie Mellon University)
April, 2010

Angel Investment: State Strategies to Promote Entrepreneurship and Economic Growth
National Governors' Association and Kauffman Foundation
January, 2008

Tax Credits and Government Incentives for Angel Investing in Various States
Angel Resource Institute (paper by Jeffrey Williams, Belmont University)
July, 2008

State Tax Credit Incentives for Equity Investments: A Survey of Current Practices
Community Development Venture Capital Alliance
July, 2004