The state senate's passing of angel investing incentives last week now promises to make the Great Lake State a leader in encouraging investors to provide seed capital to start-ups.
Excerpt:
The bill gives angel investors a 25 percent tax credit on investments, taken over two years, with a maximum credit of $250,000 in any single investment and a maximum of $250,000 in a single year.
The Michigan Strategic Fund must certify that an investment meets certain qualifications. The tax credits the fund can certify are capped at $9 million a year.
The qualifying period for the credit is after Dec. 31, 2010 and before Jan. 1, 2013.
The credit replaces a law that provided a credit only after the investment returned a profit, a process that can take many years and which its detractors said had failed as an incentive to grow new companies.
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