A tax credit approved by the Arizona Legislature to incentivize investment in early-stage bioscience and technology companies has proven to be a popular tool among local funders.
The impact of the Angel Investor Tax Credit program has been millions of dollars invested in Arizona startup companies, resulting in business and job growth and more than $1 billion in economic output.
The program was initially approved in 2005 by the Arizona Legislature and went into effect the next year. By summer 2015, the $20 million in available credits were exhausted.
The program remained unfunded until last year when the legislature voted to recapitalize the program for $10 million over four years, or $2.5 million in available credits each year through 2021.