VERNON HILLS, Ill. – State Rep. Carol Sente, D-Vernon Hills, recently introduced legislation to reinstate a popular business tax credit, known as the Angel Investment Credit, and expand eligibility to crowdfunding investors in hopes of spurring job creation in Illinois.
“There are countless innovators in Illinois’ store fronts, garages and college dorm rooms that have great business ideas, but unfortunately many lack access to the capital necessary to implement them,” said Sente. “I don’t want someone to be unable to hire people or launch their new business simply because they lack the capital to do so.”
The Sente-introduced House Bill 2946 restores and increases the Angel Investment Credit. When the $10 million tax credit expired in 2016, it paled in comparison to the amount neighboring states like Wisconsin, Indiana and Ohio provided businesses through similar initiatives. Sente’s legislation addresses this funding disparity by doubling Illinois’ Angel Investment Credit to $20 million, effectively increasing Illinois’ competitiveness with other states.
Sente’s legislation also encourages firms to engage in intrastate equity crowdfunding, a practice whereby companies or individuals can raise money from a large number of people. The Illinois Intrastate Crowdfunding law Sente championed in 2015 allows Illinois businesses to raise up to $4 million in capital (one of the highest intrastate crowdfunding allowances in the country) from both Illinois non-accredited and accredited investors in exchange for an equity interest in their business. The Angel Investment Credit increases in value to companies if they engage in intrastate equity crowdfunding.
“As a small-business owner and founder of the bipartisan House Small-Business Owners’ Caucus, I know that launching a successful small business requires much more than the sweat, blood and tears of the business owner or owners who decide to open it,” Sente said. “If someone is willing to risk so much to create jobs for Illinoisans, it makes sense that our state help them grow.”
Visit Rep Sente’s website
272-S Stratton Office Building
Springfield, IL 62706
(217) 524-0443 FAX
The Laschen Center
294 Evergreen Dr.
Vernon Hills, IL 60061
(847) 984-2206 FAX