Now that the landmark national health care legislation is heading to the desk of President Obama let’s turn our attention to a less controversial topic to the readers of FoG. Encouraging angels investors to invest in early stage, innovative, wealth-creating businesses.
Georgia House Bill 1001 is the Angel Investor Tax Credit Bill. It essentially grants up to a $50,000 tax credit to those that invest in businesses that are located in the state of Georgia, less than three years old, employ fewer than 20 employees, has less than $500k in revenue, and less than $1 million in funding. Industries that it targets include software development and information technology services. This bill aims to help entrepreneurs in Georgia to have a better chance of obtaining early stage capital. Twenty two other states have such incentives in place. It is time for Georgia to step up.
A number of technology leaders have been working hard to gain passage of the bill in the current Session of this year’s Georgia General Assembly. This bill was introduced by the Technology Association of Georgia and has the support of the Georgia Chamber of Commerce, The National
Federation of Independent Business, and The Georgia Public Policy Foundation.
The bill has been successfully progressing through various committees of the House of Representatives following which the bill will go to the Senate. This week is a very important week for the bill. There are two very important committees which will review the bill and then the bill will go to the floor of the House for a full vote, all this week.
Gaining support of the leadership of the House will go a long way in helping the bill successfully emerge this process in a timely fashion. We can gain that support by reaching out to the leadership and our elected officials and encourage them to support HB1001. The contact info of the house leadership is noted below. In addition TAG has put together a nice site that will identify your district’s representative and send them an email.
Below are also some bullet points that you might want to hit in a personalized call/message to your representatives.
- I support for House Bull 1001, The Angel Investor Tax Credit Bill
- Georgia needs this economic development tool today
- Many promising start-up companies in Georgia, most of which have been created by graduates of Georgia colleges and universities, are at risk in today’s challenging economic environment
- The primary source of capital for these businesses are angel investors: private individuals who take personal financial risk to enhance business and job creation in the state
- HB 1001 will incentivize angel investors to further engage to help promising young companies get started and create jobs in our state and to stay in Georgia
- Twenty two other states have utilizing these investment incentives for years and those states have benefited from new business creation, new jobs and new revenue
- Competing states also benefit from Georgia innovation as we’ve seen entrepreneur-graduates of our schools leave our state in pursuit of capital in other states, HB 1001 will help to address this issue
- Thank You
If you are one of the folks that has lamented about how tight angel investment is in Georgia you owe it to yourself and to the technology community to take a few moments to voice your support of HB1001. In the words of Frank Bartles, “and thank you for your support.”
Speaker of the House; David Ralston:-Blue Ridge
404.656.5020 (Office at Capitol)
706.632.2221 (District Office)
Chief of Staff: Spiro Amburn
Assistant: Gina McKinney,
Speaker ProTem: Jan Jones-Alpharetta
Assistant: Beth Green,
Majority Leader: Jerry Keen-St. Simons
912.634.3773 (District Office)
Chief of Staff: Clelila Davis
Assistant: Misty Crockett
Majority Whip: Ed Lindsey-Atlanta/Buckhead
404.920.4155 (District Office)
Assistant: Debbie Lynn
Majority Caucus Chair: Donna Sheldon-Dacula Gwinnett
Assistant: Linda Nations
Majority Caucus Vice Chair: Jeff May-Monroe
Assistant: Linda Nations
House Rules Chairman: Bill Hembree-Winston-Douglas
Assistant: Donna Woodham