In the bustling world of investment opportunities, there’s a hidden gem: the Connecticut Angel Investor Tax Credit. This often-overlooked tax incentive offers significant benefits to both investors and startups, akin to the thrill of Shark Tank. Whether you’re a startup seeking seed capital or an investor looking for a lucrative opportunity, this could be your golden ticket.
For Investors
To qualify, individuals must meet Connecticut’s accredited investor criteria and invest between $25,000 to $2,000,000 in a Qualified Connecticut Business (QCB). Key steps include:
- Verify that the business is a Qualified Connecticut Company.
- Obtain a Tax Credit Reservation Number to facilitate the investment process.
- Apply for an Angel Tax Credit Certificate and submit the necessary documentation. Upon approval, you’ll receive a tax credit authorization document essential for filing your Connecticut tax return.
- Tax Credit Benefit: Eligible investors can receive a 25% tax credit on their investment. For example, a $1 million investment could yield a $250,000 tax credit—a significant financial advantage.
For Startups
To attract these investments, businesses must meet the following criteria:
- Gross revenues under $1 million in the most recent income year.
- Fewer than 25 employees, with at least 75% residing in Connecticut.
- Operating in Connecticut for fewer than seven consecutive years.
- Receiving less than $2 million in eligible investments from angel investors.
If your business qualifies, submit an application to Connecticut Innovations, Inc., along with a $250 non-refundable fee. The application covers company details, business activities, economic impact projections, and the types of securities offered. Once approved, businesses must recertify annually to maintain eligibility.
How Our CFO Services Can Help
Navigating the Angel Investor Tax Credit requires strategic financial planning. That’s where Accavallo & Company’s CFO services come in. Our Fractional CFO Services provide the financial expertise you need to make the most of your investment opportunities, whether you’re an investor or a startup.
Informed CFO
Our Informed CFO Services provide you with the financial insights and data you need to make well-informed decisions. By leveraging advanced analytics and comprehensive reporting, we ensure you have a clear understanding of your financial landscape, enabling you to navigate challenges and seize opportunities with confidence.
Proactive CFO
With our Proactive CFO Services, we go beyond the numbers to anticipate potential financial issues and opportunities. Our team actively monitors your financial health, implements forward-thinking strategies, and provides timely recommendations to keep your business ahead of the curve. This proactive approach ensures you are always prepared for what’s next.
Strategic CFO
Our Strategic CFO Services are designed to align your financial management with your long-term business goals. We work closely with you to develop and execute financial strategies that drive growth, enhance profitability, and support sustainable success. By integrating financial planning with your overall business strategy, we help you achieve your vision for the future.
Seize This Opportunity—With Expert Guidance
The Connecticut Angel Investor Tax Credit offers a powerful incentive, but it’s essential to act fast—credits are issued on a first-come, first-served basis. Plus, venture capitalists, banks, and controlling stakeholders do not qualify, so understanding the nuances of eligibility is key.
At Accavallo & Company, we’re here to help investors and startups navigate this opportunity with confidence. Whether you need expert guidance on the application process, investment structuring, or strategic financial planning, our CFO services ensure you make the most of your investment.
Get in Touch
Contact Accavallo & Company LLC today to explore how we can support your investment or business growth.
📞 203-925-9600
📧 [email protected]
🌐 www.aco.cpa
