Angel Investors Have Until July 31 to Apply for Tax Credit
July 7, 2015
COLUMBIA, SC – Investors now have more time to apply for Angel Investor Tax Credits thanks to a request from the South Carolina Department of Revenue (SCDOR) and the state legislature’s enactment of Proviso 109.31. Made effective July 1, 2015, the proviso allows investors to submit angel tax credit applications to the Department through July 31, 2015, or until the credit cap of $5 million is reached, whichever is first.
To date, credits of $2,880,057 for 2014 have been approved. This leaves $2,119,943 in remaining credits before the cap is reached.
The SCDOR requested a one-time extension of the application period after a number of South Carolina taxpayers and businesses expressed concern that potential investors were not adequately aware of the original December 31, 2014 deadline.
“This reported lack of awareness of filing deadlines, the unmet cap, and the original intent of the tax credits make this one-time extension appropriate and necessary,” said Director Rick Reames. “The Department is committed to advancing South Carolina with a government that supports economic development and fiscal stability; this extension is consistent with that.”
Angel investor tax credits were created as part of the High Growth Small Business Job Creation Act of 2013 and are designed to encourage investment in early state, high-growth job creating businesses. The enactment of Proviso 109.13 allows investors who have satisfied all substantive requirements yet missed the initial application deadline to still receive the credit. This extension is for this year only, with the December 31 deadline remaining effective for future years.
More information as well as the Angel Investor Tax Credit Application is available on our website at dor.sc.gov.
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