Yesterday afternoon, Pennsylvania House Majority Whip Stan Saylor introduced legislation to create an angel investment tax credit in Pennsylvania. Modeled closely after legislation that has already been adopted in more than 20 states, HB 1503 would create a 25 percent tax credit for angel investors who invest in Pennsylvania-based start-up technology-related businesses. As our region’s start-up businesses face one of the toughest funding environments in decades, this legislation would create a strong incentive for local and out-of-state investors to invest their scarce resources in Pennsylvania based businesses.
Joined by 57 co-sponsors in the Pennsylvania House of Representatives, Representative Saylor proposed this legislation as a means of accelerating job creation through Pennsylvania’s small business community. The new tax credit would be financed by repurposing unused credits from the existing Keystone Innovation Zone program, thereby creating a budget neutral proposal. Senators Jane Earll and Wayne Fontana, who serve as the Majority and Minority Chairs of the Senate Committee that oversees economic development initiatives, have announced their plans to introduce similar legislation in the Pennsylvania Senate.
Though his office has not released an official position on this particular legislation, Governor Tom Corbett had expressed support for an angel investment tax credit during his campaign.
For all of these reasons, we are urging Pittsburgh Technology Council members to contact their state representatives, state senators and Governor Tom Corbett to express support for HB 1503. Interested parties can use this link to contact their elected officials with a suggested text.
Jonathan runs Visibility Initiatives at the Pittsburgh Technology Council. The Council is the nation’s largest IT trade association with 1,350 members. One of our platforms is to provide visibility to Pittsburgh tech companies and the industry in general.