General Assembly Approves Increased Funding for Angel Investor Tax Credit
On the final day of the 2013 regular session, the House and Senate agreed on amendments to the Commonwealth’s biennial budget. Among the amendments approved by both chambers was an item championed by Virginia Bio for the life science industry. The General Assembly approved an increase in the credits available through the Qualified Equity and Subordinated Debt Investments Tax Credit, also known as the Angel Investor Tax Credit, to $4.5 million for tax year 2013 (a $500,000 increase) and to $5.0 million for tax year 2014. The $1 million increase in 2014 will bring the Angel Investor Tax Credit funding up to its $5 million statutory cap.
Virginia Bio worked very hard for this increase in funding to this important incentive for capital formation for emerging bioscience companies. We are pleased and grateful that legislators in both chambers and across the aisle have determined that in a time where resources are scarce, they were determined to promote the growing bioscience industry in the Commonwealth.
The General Assembly’s budget is now before the Governor for his consideration. The Governor may amend or veto certain budget items. The Governor’s proposed budget amendments will be delivered to the General Assembly for a special 1 day veto session in early April. Virginia Bio will continue to communicate to the Governor the importance of the Angel Investor Tax Credit to capital formation and job creation in the biosciences. Please consider sending your own communication to the Governor in support of the increased funding.
Thanks to those who attended and sponsored our Legislative Day events in Richmond on February 11, and who provided to our state legislators a real face on the innovation, job creation and importance of the biosciences in Virginia.