On August 24, 2017, Gov. Bruce Rauner signed SB 2012 (P.A. 100-328) into law, renewing the Illinois Angel Investment Tax Credit Program (“Program”) effective January 1, 2018. The Department is in the process of drafting updated rules to administer the Program. Based upon the rulemaking procedures outlined in the Illinois Administrative Procedure Act (IAPA) [5 ILCS 100], the Department expects to adopt new rules in early 2018. Applications for interested Qualified New Business Ventures (QNBVs) and Claimants/Investors may not be available until that time.
We will provide updates and additional time-frame information in the coming weeks. Thank you for your continued patience as we move forward; we appreciate your continued interest in the Program.
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 awarded on a first-come, first-served basis.
- Frequently Asked Questions - Coming Soon
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.
- 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 here 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:
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 initial application
- At least 51% of employees located in Illinois
- Headquarters located 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 with the Illinois Secretary of State’s Office to transact business in Illinois
Business applications and forms:
Previously registered QNBV’s in the 2015 Angel Program
How to Apply
All questions, QNBV registrations, re-registrations and claimant applications can be sent electronically to AngelInvestment@illinois.gov.
Available Tax Credits (per calendar year)
January & February Snapshot
July & August Snapshot
***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.