"Angel Investor" Applications Now Available

The Small Business Capital Investment Tax Incentive Program (Angel Investment) is now available to investors. Beginning July 1st, the guidelines and applications became available on the Arizona Department of Commerce website: www.azcommerce.com.

"Qualified investors" who make an investment in "qualified small businesses" can receive an Arizona income tax credit equal to 30% of the investment. The tax credit percentage increases to 35%, if the investment is made in a company located in rural Arizona or in a "bioscience enterprise".

"We must invest in innovation," says Governor Janet Napolitano. "Thisprogram does so by assisting early-stage small businesses in attracting the much needed capital to expand operations & bring new ideas, products & services to market."

"In today's highly competitive global business environment, investment in our innovative companies is critical," says Gilbert Jimenez, Director of the Arizona Department of Commerce.

"Small businesses are the backbone of Arizona's economy," says Senator Barbara Leff, who introduced the legislation. "The goal of this programis to ensure "early stage companies have an opportunity to grow & become strong & successful". The tax credits can be claimed over a 3-year period & are not transferable. Unused tax credits may be carried forward for 3 years. To generate a tax credit, the investment must be an equity security of at least $25,000 made after July 1st, 2006 & reported to the Arizona Dept. of Commerce within 30 days.

A "qualified small business" must be certified by the Arizona Department of Commerce. To be eligible as a "qualified small business," the business entity must be located in Arizona with at least 2 non-administrative full-time equivalent employees & total assets under $2 million. Companies engaged in research & development &/or in theprocess of bringing innovative products to market are encouraged to apply for certification. Generally, retail, banking, personal & professional services & other service oriented businesses do not qualify.

The Angel Investment Tax Credit will be available beginning July 1st, 2006 through June 30th, 2011. Tax credits are capped at $20 million & will be administered through the Arizona Department of Commerce on a 1st-come 1st-served basis.

For more information and application forms, visit www.azcommerce.com. Questions may be e-mailed to smallbusinessangel@azcommerce.com.