After the investment is made, the investor should submit a Tax Credit application to Launch Tennessee.
For individual angels: A submission must include the cover page and signature page(s) of the Stock Purchase Agreement, as well as proof of wire transfer or a copy of the check. Launch Tennessee reserves the right to request further legal documentation evidencing the investment (e.g., securities purchase agreement, operating agreement, convertible note, etc), as well as satisfactory evidence that the investment has been fully funded.
A Tax Credit Application must be submitted to Launch Tennessee within 60 days of the funding of the applicable investment. Unless the Company Qualification Application has previously been submitted to Launch Tennessee, the Tax Credit Application will not be considered complete until the Company Qualification Application is also submitted. Tax credit certificates are issued on a first-come, first-served basis according to the date that the application is considered to be complete, which shall be the later of the dates on which the two completed applications are submitted to Launch Tennessee with all required information and supporting documentation. If either of the Company Qualification Application or the Tax Credit Application is not submitted within 60 days of the applicable investment, the Tax Credit Application is deemed to be incomplete and will therefore not satisfy the 60-day statutory filing deadline.
For angel groups: A group of angels investing as a single entity as an LLC or Limited Partnership are now eligible to receive a tax credit. The General Partner should fill out the Investor Application form which requires the Entity Name, Federal Employer Identification Number (FEIN), Operating Agreement, proof of wire to the company and signature pages of the Stock Purchase Agreement. In order for the individual members of the partnership to receive tax credits, the General Partner must also circulate Group Member Forms for individual members to fill out themselves in order to track and apply tax credits based off each individual’s contribution to the group investment.
Both individual angels and members within an angel group must self certify as accredited investors.