Program Overview

Part of a multi-pronged approach to capital formation, the Angel Tax Credit (ATC) incentive program is one of many ways that Launch Tennessee works to create a more favorable environment for early stage investment.

Through education and awareness of programs like the ATC, LaunchTN hopes to fill the gap in early stage funding by incentivizing new angel investment and encouraging continued positive momentum for existing angel investors.

Program Features

The Angel Tax Credit Incentive Program is applied to Hall Income Tax payers who invest their own money to support potential high-growth, early-stage companies, thereby playing a key role in Tennessee’s entrepreneurial ecosystem.

The Angel Tax Credit benefits investors by connecting them with prequalified early-stage companies, which lowers risk and boosts return, and encourages early stage capital formation where it is most needed.

To start the company pre-qualification process

Program Details

The Angel Tax Credit was passed by the Tennessee General Assembly in 2016 and became active on January 1st, 2017. The ATC provides a tax credit against the Hall Income Tax for angel investors who make a direct investment in a qualifying early-stage, Tennessee-based company.

For credits to be awarded, both the company and investor must submit applications to be approved by LaunchTN. In order to submit an investor application, the company being invested in must have already applied and been approved via the above link.

The maximum amount of credits a single angel investor can use for any given tax year is limited to $50,000, though unused credits can be carried forward.

Important links:

  • For more information regarding how the program works, what makes a company qualified for investment, and example scenarios, please see our Program Guidelines page
  • For more detailed answers to frequently asked questions, please see our Angel Tax Credit FAQ page
  • For any questions regarding the program, please reach out to atc@launchtn.org

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