DES MOINES, IA—JULY 27, 2011– Nearly a month after the legislature adjourned for the year, Governor Branstad signed into law Senate File 517, the budget for the new Economic Development Authority (EDA). This budget bill contains the statutory language reauthorizing the Angel Investor Tax Credit program and moved the program under the EDA. For qualified investments made in 2011, there will be $2 million in Angel Tax Credits available, and $2 million per year in subsequent calendar years. The old program under the Iowa Capital Investment Board went dormant when funding was eliminated after the 2007 tax year.
Organizations like the Entrepreneurial Development Center (EDC) and Technology Association of Iowa (TAI) encouraged entrepreneurs across the state to contact their senators and encourage votes in favor of reinstating the tax credits crucial to fostering innovation in Iowa.
“The reinstatement of Angel Investor Tax Credits is a win for entrepreneurs and will surely catalyze investment and subsequent jobs and revenue growth in Iowa,” said Curt Nelson, President & CEO of the Entrepreneurial EDC. “The Angel Tax Credits will help entrepreneurs secure the often difficult-to-raise early-stage investment dollars necessary to fund their startup businesses and make Iowa a more competitive place to start and grow businesses.”
Additionally, the EDA and the Iowa Partnership for Economic Progress (IPEP) were created in House File 590, which was signed into law on July 18. IPEP is a subchapter established to implement economic development policy in the state by means of a collaboration between government and the private sector.
The Entrepreneurial Development Center was incorporated in 2003 as a community-sponsored, non-profit business accelerator. The company provides economic growth through the development and expansion of entrepreneurial enterprises and has successfully assisted over 400 Iowa-headquartered businesses. Its focus is on creating local wealth for area re-investment by growing and cultivating regional, national, and international businesses. Visit www.edcinc.org for details.