Angel Investor Tax Credit Program

Connecting entrepreneurs to qualified investors

CONTACT

Rachéll Rowand, Program Manager

(785)-207-4755

Rachell.Rowand@ks.gov

CONTACT

Erin Starr, Kansas Department of Revenue

(785) 296-8042

erin.l.starr@ks.gov

The Kansas Angel Investor Tax Credit (KAITC) program is designed to bring together accredited angel investors with qualified Kansas companies seeking seed funding and early-stage investment. KAITC grants tax credits against the Kansas personal income tax liability of investors in these start-up ventures.

Eligibility

Who’s Eligible for a Tax Credit Allotment

To be considered a qualified business through KAITC, the business must be approved by the Kansas Secretary of Commerce prior to the date on which the cash investment is made. To qualify, the following criteria must be met.

  • The business must be headquartered in Kansas
  • The business must have an innovative, proprietary technology, product or service
  • Bioscience businesses must have been in operation for less than 10 years; non-bioscience businesses must have been in operation for less than five years
  • The business must not have had annual gross revenues greater than $5 million in the most recent tax year
  • At least 60% of employees must be employed in Kansas, or 80% of total operations / manufacturing must be done in Kansas
  • The business must not have ownership interests that are publicly traded
  • Owners and other founders of the business must have made or are committed to make a substantial financial and time commitment to the business
Eligibility Requirements

The following information will be required when submitting your application.

  • Proof you are a Kansas company: articles certified by the Secretary of State
  • Proof you are headquartered in Kansas
  • Complete business plan
  • Executive summary
  • Company bylaws / operating agreement
  • Pitch deck
  • Target market
  • Statement on the innovativeness of your product, service or technology: Why are you different?
  • Statement of potential Kansas economic impact: How many jobs and the type? How many locations? Where will you be located? The impact your presence will have on the community.
  • Description of the securities offered (sample of the security agreement that will be offered in conjunction with the tax credits)
  • Current financial statement
  • Projected financial statement
  • Your NAICS Code
  • The amount of tax credits you are wanting and what their use will be
  • List of all owners with % of ownership and monetary amount invested for ownership
  • Current management staff with statement of background
  • Current and projected employee numbers and their work location (paid employees KCNS-100)
  • Current board of directors and/or advisors with statement of background
  • If you have expected investors who are they?

Who Qualifies as an Investor

Accredited investors seeking high returns through private investments in start-up companies are allowed up to a 50% tax credit on their cash investment up to $50,000 per KAITC company in which they invest. The maximum credit per qualified investor is $250,000 a year. Accredited investors are defined by Kansas statute as:

  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1 million
  • Any natural person whose income exceeds $200,000 in each of the two most recent years, or whose joint income with that person’s spouse exceeds $300,000
  • A revocable trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring the securities offered
  • Any entity in which all equity owners are accredited, natural person investors

Application Period(s)

For businesses seeking financing: Applications are accepted from the first week of February through the last Friday in August each year.

For individuals seeking to invest: Applications open the first Monday in January through December 1.

Additional Resources

FAQ for Investors
Download
KAITC Guidelines
Download

Want to Learn More About Tax Credit & Financing?