Successful passage of the Council’s top legislative priority helps maintain Arizona’s competitiveness on a global scale
As the state’s premier trade association for science and technology companies, the Arizona Technology Council applauds Arizona legislators for the passage of SB1124, which includes provisions extending the Small Business Capital Investment Incentive for another 10 years. Continued funding of this program — commonly referred to as the angel investor tax credit that incentivizes investment in early-stage companies and tech startups in Arizona — was a top legislative priority for the Council in FY 2021.
“Thank you to state Senate President Karen Fann, Sen. David Gowan, Rep. Regina Cobb and all the legislators who we worked with to find a path to get the program extended,” said Steven G. Zylstra, the Council’s president and CEO. “This program serves as an economic engine and has more than paid back the state’s investment through tax credits by generating more than three times the revenue than the amount of credits approved.”
The Council is now urging Gov. Doug Ducey to sign the legislation as it will continue to aid Arizona’s economic success and help companies thrive. The program is one of the few tax credits that garner bipartisan support since it has proven it works and helps generate revenue to support other state priorities, such as education and public safety. The combined economic impact of the program has been an estimated $1.38 billion for Arizona’s economy in the past six years. From the $2.5 million in tax credits issued annually, $10.5 million in state and local tax revenue is estimated to be received as a direct result of the program. This shows how not only investors and entrepreneurs benefit from the program but all Arizona taxpayers do, too.
Lawmakers established the Small Business Capital Investment Incentive Program in 2006, authorizing the issuance of tax credits to expand early-stage investments in small businesses here. The Arizona Commerce Authority is responsible for the management of the program. If a qualified business locates in rural Arizona or is a bioscience company, the investor may receive a maximum tax credit of 35% spread over three years. For other types of businesses, the maximum tax credit is 30% over three years.
Visit www.aztechcouncil.org/public-policy to learn more about the Council’s public policy activities.
About the Arizona Technology Council
The Arizona Technology Council is Arizona’s premier trade association for science and technology companies. Recognized as having a diverse professional business community, Council members work towards furthering the advancement of technology in Arizona through leadership, education, legislation, and social action. The Council offers numerous events, educational forums, and business conferences that bring together leaders, visionaries, and community members to make an impact on the technology industry. These interactions contribute to the Council’s culture of growing member businesses and transforming technology in Arizona. To become a member or to learn more about the Arizona Technology Council, please visit www.aztechcouncil.org.
Visit www.aztechcouncil.org/tech-events to view all of the Council’s upcoming virtual tech networking opportunities, engaging virtual tech events and in-person tech events.