Qualified Kansas Business
Congratulations on being a Qualified Kansas Business eligible to receive Kansas Angel Tax Credits! Please read the following helpful steps:
- Carefully read the KAITC Guidelines and the emailed Determination Letter and attachments to understand the requirements to receive tax credits.
- Seek your investment and document cash investment by angel Investor(s) before the expiration date of reserved tax credits. Use the summary table provided in your determination email.
- Review and sign a KAITC Agreement so tax credits may be issued.
- Be sure to have your Investor(s) register online and paid the $150 registration fee for qualification determination. ⬅ If this doesn’t happen they won’t get tax credits.
How to Document a cash investment:
Investment through Individual (Natural Person) Investor:
- An Investor Summary Table submitted by Qualified Kansas Business
- Include for each investor -- name, amount of investment, and amount of tax credits requested. (50% of investment up to $50,000)
- Copy of check/wire from investor into Qualified Kansas Business.
- Copy of subscription/purchase/security agreement, signed by company and investor.
- Investor(s) must register online at www.kansasangels.com certifying their qualification as an Angel Investor and remit the $150* Investor Registration Fee to the Kansas Department of Commerce.
Investment through a qualified Permitted Entity Investor (e.g. LLC):
Note: Tax credits will be issued only to individual (natural persons) Owners of a Permitted Entity. Investment must be directly from Permitted Entity to Qualified Kansas Business and all the equity owners of the permitted entity investor must be registered accredited investors. Investment through multiple Permitted Entities (e.g. LLC-1 to LLC-2 to Qualified Kansas Business) will not be eligible for tax credits.
- Copy of the Permitted Entity’s operating agreement documenting that it is operated for the sole purpose of making investments in other entities.
- Copy of the capitalization table of the Permitted Entity.
- Copy of the individual investor’s check/wire into the Permitted Entity.
- Copy of the Permitted Entity’s check/wire into the Qualified Kansas Business.
- Investor(s) must register online at www.kansasangels.com certifying their qualification as an Angel Investor and remit a $150* Investor Registration Fee to the Kansas Department of Commerce.