The govenor of one state announced a package of tax breaks and other incentives to encourage start-up businesses in that state.
The package will include additional state money for technology grants and loans and additional tax benefits for investors in start-up companies.
This funding package is intended to build on the state's economic growth and to shore up the state's manufacturing base and to promote high-tech businesses. The original funding program initiative leveraged more than $260 million in the state since 2003, as well as increasing so-called "angel" investments in start-up businesses by more than 50 percent in the past two years.
The program was put in place so that the state can move from a traditional manufacturing economy into a "knowledge-driven economy" of highly skilled, well-educated, and highly paid workers.
The package includes:
- Adding $5 million in tax credits annually which will leverage over $400 million in private investments in the state by 2015.
- Raising the tax credits available to so-called "angel" investors from $1 million to $4 million per start-up company.
- Providing an additional $5 million annually to the grant and loan program to provide seed money and bridge loans for start-up companies and small businesses.
- Raising the exclusion on state capital gains taxes up to $10 million for individuals, partners, and limited liability companies if the taxpayers reinvest all of their funds into companies that are in the state.