‘Angel’ tax-credit bill signed into law

DENVER – Angel investors – folks who back startup companies – will continue to get a state tax credit from a bill signed into law Monday by Gov. John Hickenlooper.

As home to entrepreneur help groups such as TechStars Boulder, the Boulder Innovation Center and the Silicon Flatirons Center for Law, Technology and Entrepreneurship, Boulder County is known across the United States as a startup hub. Such startup companies often look for seed funding from angel investors.

The new law is aimed at investors who give at least $25,000 to small Colorado businesses that are less than five years old and are involved in research, development or manufacturing of new technologies, products or processes. Under the new law, those investors can receive a tax credit of 15 percent of their investment, up to a maximum credit of $20,000.

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During the tax credit pilot program in 2010, about $622,000 was given to investors who helped 21 companies across the state generate about 28 jobs.

There is no current funding for the tax credit, but state Rep. John Kefalas (D-Fort Collins) and co-sponsor Sen. Linda Newell (D-Denver) have said they hope funds can be made available in the future through the Colorado Office of Economic Development and International Trade, potentially in the form of a federal grant.

A spokesperson at the Colorado Office of Economic Development and International Trade was not immediately available for comment.