Effective July 1, 2007, “Angel Investor” and “Investor” means an accredited investor who is a natural person or an owner of a permitted entity investor, who is of high net worth, as defined in 17 C.F.R. 230.501(a) as in effect on the effective date of this Act. The SEC defines an accredited investor as any natural person whose individual net worth, or joint net worth with that person's spouse exceeds $1,000,000, or any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year. “Permitted Entity Investor” means (A) any general partnership, limited partnership, corporation that has in effect a valid election to be taxed as an S corporation under the United States internal revenue code, or a limited liability company that has elected to be taxed as a partnership under the United States internal revenue code and (B) that was established and is operated for the sole purpose of making investments in other entities. If the investor is a permitted entity investor, the credit provided shall be claimed by the owners of the permitted entity investor in proportion to their ownership share of the permitted entity investor. For the purposes of this act, a person who serves as an executive, officer, employee, vendor or independent contractor of the business in which an otherwise qualified cash investment is made is not an angel investor and such person shall not qualify for the issuance of tax credits for such investment. Accredited angel investors must register as such to be eligible for the Kansas Angel Tax Credit in the Angel Investors section of this web site.