TechPoint recently released McGuire Sponsel’s article discussing the VCI Program. TechPoint is an organization that promotes & accelerates the growth of Indiana’s tech community. Jake Madore, Tax Consultant, is a contributing author for Indiana should expand scope and size of venture capital tax credits.
Currently, the Indiana Venture Capital (VC) space has a limited supply of capital to dispense. Meaning, Indiana startups can often struggle to take a great idea and turn it into a viable company here. Whereas, VC on the coast is plentiful. A tech CEO in Indy recently mentioned that a mediocre idea on the coast can fall into a few million dollars of VC investment while a great idea in Indiana will often struggle to find the necessary investment dollars. This dichotomy can lead to innovators leaving Indiana in search of VC funding, causing Indiana to miss out on the resulting job creation, capital deployment and economic impact.
So how does Indiana expand the VC money pool here? Enter the Venture Capital Investment Tax Credit (VCI) program. The VCI program improves access to capital for growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms. Currently, investors who provide qualified debt or equity capital to Indiana companies receive a credit against their Indiana tax liability. Today, the maximum tax credit available is 20 percent of the investment, up to $1,000,000.
Read the full article on TechPoint.