The credit should prove an efficient way to raise capital for social equity applicants, but will not be the sole motivating factor for investing in such businesses.
The credit is a nice incentive for the investor for sure, but other issues such as federal reaction to the business and general industry will still weigh on investors' minds. The recent legislation allocates $15 million per fiscal year for cannabis businesses, but unlike some different Connecticut tax credits, does not allow for transferability.Īngel investors will also need to apply to Connecticut Innovations.ĭo you think the tax credit is enough to quell investor concerns, and lead them to invest in a growing cannabis company? Lickwar: The credit percentage for other eligible angel investor credits is limited to 25% of the investment, and only $5 million in credits per fiscal year are allocable to these businesses. How does this tax credit (as far as the percentage investors can write off) compare to other Connecticut tax credits? Unused credits can be carried forward, but are not transferable. The credit maximum per investor is $500,000, and it can reduce personal income tax liability to zero. The credit percentage is 40% of the amount invested, with a minimum investment of $25,000. To qualify for a credit, a cannabis business must have had annual gross revenues of less than $1 million in the most recent income year have fewer than 25 employees, not less than 75% of whom reside in Connecticut be primarily owned by the management of the business and their families and have received less than $2 million in cash investments eligible for the tax credits.
RAAZ THE MISTRY CONTINIOUS LICENSE
This law extends the tax credit program to eligible cannabis establishments for which social equity applicants have been granted a license or provisional license (i.e., cannabis businesses). Securities and Exchange Commission considers ‘accredited investors’) who make qualifying cash investments in eligible Connecticut businesses. The angel investor tax credit program provides personal income tax credits to angel investors (i.e., investors who the U.S.
(CI) in order to receive credit-eligible investments. Lickwar: Cannabis businesses must apply for and receive approval from Connecticut Innovations Inc. Can you explain how the angel investor tax credit works for cannabis business investors in Connecticut?
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