About
The Angel Investor Tax Credit is a state-administered investment incentive program established in Connecticut in July 2010 as part of the Jobs Bill to stimulate capital deployment into Connecticut-based businesses. Administered by Connecticut Innovations, the program provides qualified angel investors with a 25% credit against Connecticut state income tax when they invest a minimum of $25,000 in Qualified Connecticut Businesses, with maximum individual investments capped at $2,000,000. To participate, investors must meet Connecticut's definition of an accredited investor or represent a network of accredited investors. The program originally focused on emerging technology industries but was expanded to include Connecticut businesses across all sectors. Investors who qualify receive tax credits calculated at 25% of their investment amount, providing meaningful downside protection and return enhancement on early-stage investments. For founders and qualified businesses, the program offers access to accredited capital without equity dilution from venture capital firms, with successful investee companies listed on the Connecticut Innovations website to facilitate additional angel sourcing. The program operates as a tax incentive rather than a traditional angel group structure, meaning there is no formal membership model, dues, or collective investment committee—instead it functions as a state-level credit mechanism available to individual accredited investors making qualifying investments. Audits have noted that Connecticut's program provides a lower tax credit percentage (25%) compared to several other states' angel programs, and that the state lacks defined performance measures and competitive objectives outlined in statute, distinguishing it from programs in Maine, Louisiana, Colorado, and Kansas.