The Illinois Angel Investment Credit Program encourages job growth and capital investment in state by offering a tax credit to people or firms that make an investment in an innovative, qualified new business venture.
The program offers a tax credit to qualifying firms in an amount equal to 25% of their investment made directly in a qualified new business venture. The maximum amount of an investment that may be used toward the credit is $2,000,000 per investment. The tax credit cannot be sold or otherwise transferred to another person or entity.
Businesses desiring the qualified new business venture status must register for each tax year in which they are seeking the designation. The registration will attest that the business is principally engaged in innovation, that their business headquarters is located in Illinois and that their business has the potential for creating jobs and increasing capital investment in Illinois. The investment in the qualifying business must remain for at least 3 years to be eligible for the credit.
The amount of the 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 qualified new business venture status must meet the following requirements:
Headquarters located in Illinois
- At least 51% of employees located in Illinois
- Has the potential to create jobs and increase capital investment in Illinois
- Be principally engaged in innovation
- Has fewer than 100 employees at the initial registration
- Been in operation in Illinois for no more than 10 consecutive years prior to certification.
- Has not received more than $10,000,000 in aggregate private equity investment in cash or $4,000,000 in investments that qualified for tax credits.
- Be registered with the Illinois Secretary of State’s Office to do business in Illinois.
Firms or individuals interested in receiving the tax credit must submit an application to the Illinois Department of Commerce and Economic Opportunity, which, upon approval, will provide a tax credit certificate.
The maximum amount of tax credits is capped at $10,000,000 per calendar year. If the $10 million in allocated tax credits have been issued prior to January 1st of the next calendar year, DCEO will not accept any new applications for the remainder of the current year. The Department will begin accepting new applications beginning January 1st on new investments that are made from that date forward. Tax credits will be awarded on a first-come, first-served basis.
Available Tax Credits (Per Calendar Year)
Qualified New Business Venture List (PDF)
For the specific program language in the law that establishes this program (Public Act 097-1097 - 35/ILCS 5/220 Sec. 220), please click: For questions about the Illinois Angel Investment Credit Program or to request an application please contact: Illinois Department of Commerce and Economic OpportunityIllinois Angel Investment Tax Program500 East Monroe Street - 4th FloorSpringfield, Illinois 62701(217) 557-0513Fax: (217) 558-4860
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 questions about the Illinois Angel Investment Credit Program or to request an application please contact:
Illinois Department of Commerce and Economic Opportunity
Illinois Angel Investment Tax Program
500 East Monroe Street - 4th Floor
Springfield, Illinois 62701
Fax: (217) email@example.com