According to media reports and political literature circling South Carolina, there is a plan to introduce a bill that would provide angel investors a tax credit for funding provided to start-ups within South Carolina.
If I read the bill correctly, the max credit one could receive in one year is $100,000 per year and the unused portions of the credit can be used up to 10 years in the future until it has expired.
The credit would apply to investments made to entities primarily engaged in:
manufacturing, processing, warehousing, wholesaling, software development, information technology services, research and development, or a business providing services other than those described in subitem (g);
Those exclusions are:
real estate or construction; professional services; gambling; natural resource extraction; financial brokerage, investment activities, or insurance; entertainment, amusement, recreation, or athletic or fitness activity for which an admission or membership is charge.
A few representatives that we talked to said that they are looking into the bill and would support it, but it is truly dependent on the state of the budget.
As a side note, this is one of the majority caucus’ agenda bills and the Republicans control the House, Senate and Governor’s mansion.
Obviously, this would be excellent news for any start-up based in South Carolina. It could be an instrumental component of your companies pitch to obtain additional funding to grow your product.
So Angel Investors, would a tax credit make you more likely to invest in a start-up in South Carolina?