The Illinois Angel Investment Credit Program is operated by the Illinois Department of Commerce and Economic Opportunity. Based on a review of a written registration form submitted by an interested firm, the Department is authorized to designate qualified new business ventures as "eligible." Firms and/or natural person(s) desiring a tax credit based on their investment in a qualified new business venture shall receive a tax credit certificate upon satisfactory review by the Department.
The amount of tax credit is calculated on a case-by-case basis, based on the amount of investment made directly in a qualified new business venture. While the tax credit may not exceed the taxpayer's Illinois income tax liability for the taxable year, the credit may be carried forward for up to 5 years following the excess credit year.
About the Angel Investment Tax Credit
Each business desiring to be registered as a qualified new business must have its headquarters located in Illinois, at least 51% of the employees must be employed in Illinois, the business must have the potential for increasing jobs and capital investment in Illinois, it must be principally engaged in innovation, it has fewer than 100 employees at initial time of registration, it has been in operation in Illinois for not more than 10 consecutive years prior to the year of certification and it has received not more than $10,000,000 in aggregate private equity investment in cash or $4,000,000 in investments that qualified for tax credits. An eligible business must be registered with the Illinois Secretary of State’s Office to be authorized to do business in Illinois. If the registration form is approved, the Department will notify the business in writing.
Interested firms or natural person(s) desiring a tax credit based on their investment in a qualified new business venture must submit an application to the Department which attests to the fact that an investment has been made and remains in the qualified new business venture for no less than 3 years. Upon satisfactory compliance with registration guidelines, the Department shall provide the qualified firm and/or natural person(s) with a tax credit certificate.
The maximum amount of tax credits to be issued under the Act is capped at $10,000,000 per calendar year. *If the $10 million in allocated tax credits have been issued prior to January 1st, then DCEO will not accept any additional claimant applications for the remainder of that particular calendar year. Then, the Department will begin accepting new claimant applications beginning January 1st based only on new investments which are made from that date, going forward. Tax credits will be awarded to interested firms and/or natural person(s) who adhere to the program requirements on a first-come, first-serve basis.
Available Tax Credits (Per Calendar Year)
- 2011: $0
- 2012: $0
- 2013: $800,000 (as of December 3, 2013)
- 2014: $10,000,000 (available January 1, 2014)
Qualified New Business Venture List
For the specific program language in the law that establishes this program (Public Act 097-1097 - 35/ILCS 5/220 Sec. 220), please click: Illinois Angel Investment Public Act 097-1097
For any inquiries about the Illinois Angel Investment Credit Program or to submit an application to become an eligible Qualified New Business Venture or an eligible Claimant please contact: firstname.lastname@example.org.
For more information about Angel Investment Contact:
Illinois Department of Commerce and Economic Opportunity
Illinois Angel Investment Tax Program
500 East Monroe Street - 4th Floor
Springfield, Illinois 62701
Fax: (217) 558-4860