by Todd Shelton, Director, Athens County Economic Development Council
In the current economic climate raising capital is challenge for start-ups and small businesses.
I am always interested in learning and sharing information that may help our local business, and also help create more start-ups here in Athens County.
A recent article on Inc.com titled A Tax Cut for Angels highlights how several states in including Ohio are taking advantage of tax credits given to angel investors and start-ups.
The article describes how the Ohio program lets angels deduct 25 percent of an investment in a start-up company. “
It also states that over the past 12 months in Ohio, 58 companies have received angel investments that qualified for the state’s 25 percent tax credit. “There was a dearth of [early-stage] capital in the state,” says Lisa Patt-McDaniel, Director of the Ohio Department of Development. “I wouldn’t say that capital is now robust, but it is more available.”
The article goes on to recommend that other states should adopt the same program, and how the federal government could improve tax credit as well.
Angel investor, Stephen Spinelli, co-founder of Jiffy Lube, summed things up at the end of the article by stating: “If I get an immediate tax credit, I get an immediate return. I know I would increase my investing if there was a tax credit.”
Read the entire article at:
