The state of Georgia offers an Angel Investor Tax Credit that provides up to a $50,000 annual tax credit for accredited investors funding early-stage innovative qualified businesses in Georgia. To be a qualified investment it must be an transaction involving cash for stock, equity interest, or subordinated debt in a corporation, partnership, or LLC. The tax credit is calculated based on 35% of the investment and can offset up to $833,333 of Georgia taxable income. The investment can be made directly or through a pass-through entity. To be a qualified the business must file an application with the state as well as follow the guidelines below.
- Headquartered in Georgia
- Under 3 years old
- 20 employees or less
- Annual revenue does not exceed $500,000
- $1 million capped cash funding from equity or debt issuance (not including commercial debt)
- Engaged in one of the following business lines: Manufacturing, Processing, Online/Digital Warehousing, Software Development, IT Services, R&D, or Online/Digital Wholesaling
How do I apply for the Georgia Angel Investor Tax Credit?
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.