The Georgia qualified investor tax credit, or Angel Investor Credit, became available to investors in early-stage Georgia start-up companies beginning with 2011. Individual investors who make qualifying investments in certified businesses, whether directly or through a pass-through investment entity, may receive a credit of 35 percent of their annual investment — up to $50,000 — two years after the year the investment is made.
Investors or investment entities that made such qualifying investments during 2013 now must obtain approval from the Georgia Department of Revenue to claim these credits on their 2015 tax returns. These investors must file Form IT-QI-AP with the state between Sept. 1 and Oct. 31, 2015 in order to claim their respective credits on their 2015 returns when filed next year.
It is imperative that all investors who made qualifying investments during 2013 file this form by Oct. 31; late applicants will be denied any credits. After Oct. 31, the Department of Revenue will approve credits for eligible taxpayers up to the $10 million annual limit and will send notification of the approval. If the limit is reached, credits will be assigned on a pro-rata basis.
For more information on the Angel Investor Credit. Please view our primer on the Habif, Arogeti & Wynne website.
Mr. Kopelman is partner-in-charge of the technology and biosciences group and tax practice of Habif, Arogeti & Wynne, an ATDC sponsor company.