Approval Period for 2014 Angel Credit Investments Ends Oct. 31, 2016

September 29, 2016

The Georgia qualified investor tax credit, or Angel Investor Credit, became available to investors in early-stage Georgia startup companies beginning with 2011. Individual investors who make qualifying investments in certified businesses, whether directly or through a pass-through investment entity, may receive a credit of 35 percent of their annual investment up to $50,000 two years after the year the investment is made.

Investors or investment entities that made such qualifying investments during 2014 now must obtain approval from the Georgia Department of Revenue to claim these credits on their 2016 tax returns. These investors must electronically file Form IT-QI-AP on the Georgia Tax Center website between Sept. 1 and Oct. 31, 2016 in order to claim their respective credits on their 2016 returns when filed next year. Refer to our guide for instructions on how to electronically file Form IT-QI-AP.

It is imperative that all investors that made qualifying investments during 2014 submit this form by Oct. 31; late applicants will be denied any credits. After Oct. 31, the Department of Revenue will approve credits for eligible taxpayers up to the $10 million annual limit and will send notification of the approval. If the limit is reached, credits will be assigned on a pro-rata basis.

For more information on the Angel Investor Credit, please view our primer.

Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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About the Author

Mitchell Kopelman

Mitchell is the partner-in-charge of Aprio’s Tax practice as well as the Technology & Biosciences group. He has been a partner since 1990 with Aprio, which is the largest Georgia-based tax, accounting and consulting firm. Mitchell works with companies in the software, gaming, clean tech, financial technology (FinTech), health care IT, processing, biosciences (biotech and medical device) and manufacturing industries. Whether a company is pre-revenue, starting up, growing or preparing for a liquidity event, Mitchell works with them to maximize their potential at each stage. He is known for promoting research, innovation and entrepreneurship by enabling companies to be successful, regardless of where they are in their business lifecycle.

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