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The Illinois Angel Investment Credit Program attracts and encourages investment dollars into early-stage, innovative companies throughout Illinois. Investments provide these companies with much needed access to working capital to further their growth and success in our state. Tax credits are allocated throughout the year and are awarded on a first-come, first-served basis.
Businesses must register for each taxable year in which they desire to be a qualified new business venture (QNBV). Businesses seeking eligibility with the program must satisfy the following requirements:
- Principally engaged in innovation
- Fewer than 100 employees upon submitting application
- At least 51% of employees located in Illinois
- Principal place of business in Illinois
- In operation in Illinois for no more than 10 consecutive years prior to certification
- Has the potential to create jobs or capital investments, or both
- Has not received more than $10 million in aggregate private equity investments, or $4 million in investments that qualified for tax credits
- Be registered in good standing with the Illinois Secretary of State’s Office to transact business in Illinois
- If approved and an investment into your business results in the issuance of a tax credit, you are required to submit an annual report for three years following the issue date of late credit.
*All previously certified QNBV's MUST apply as a new applicant for the 2018 program.
Business application and forms:
Offers tax credits to qualifying claimants in an amount equal to 25% of the claimant’s investment made directly in a qualified new business venture. *If an investor places $100,000 into an eligible business, they would receive a $25,000 tax credit. 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. Potential Angel investors must adhere to the following requirements:
- Must invest in a registered qualified new business venture. *Investments occurring prior to a business’s eligibility with the Angel program are ineligible to receive a tax credit.
- Minimum investment amount can be no less than $10,000.
- Maximum investment amount used toward tax credit is $2,000,000 per investment.
- Investment must remain in qualified new business venture for at least 3 years and attestation must be submitted on the first, second and third anniversary of investment. Attestation forms will be accepted within 30 days prior to the anniversary of the investment.
- Tax credits cannot be sold or otherwise transferred to another person or entity.
- Only equity investments are eligible for tax credits; convertible notes not be accepted until it converts to equity, but must convert in same calendar year. Exceptions are Simple Agreement for Future Equity (SAFE) Agreements. If you wish to use this agreement, it must follow the approved template, which can be found under "Investor applications and forms."
- Must include proof that funds were transferred to Qualified New Business Venture, documentation from Qualified New Business Venture that investment was made (documentation states type of equity investment) and proof that funds were received from Qualified New Business Venture. Department may request additional documentation.
Investor applications and forms:
All questions, QNBV registrations and investor applications should be sent electronically to
NEW! 2018 APPROVED QUALIFIED NEW BUSINESS VENTURES
2018 Approved QNBV Listing as of 2.24.18.pdf
Available in 2018
***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, the Department will not accept any new applications for the remainder of the current year. Tax credits will be awarded on a first-come, first-served basis on completed applications.