The Angel Investor Tax Credit program is offered to investors interested in funding early-stage companies engaged in life sciences research and development, commercialization and manufacturing in Massachusetts. The program provides a taxpayer investor a credit of 20% of the qualifying investment, or 30% if the business is located in a gateway municipality, in a business that has no more than $500,000 in gross revenues in the year prior to eligibility.
Credits are available up to $50,000 in any one taxable year for qualifying investments of up to $125,000 per qualifying business per year and up to $250,000 in cumulative qualifying investments for each qualifying business.
Deadline of Jan. 16, 2024 at 5 p.m. EST for submission of applications for qualifying investments made during calendar year 2023. Applications are accepted on a rolling basis. If a business wishes to apply for early qualification as a Qualifying Business for the 2023 program, the deadline to submit their application is Dec. 15, 2023 at 5 p.m. EST.
Eligibility & Evaluation
- Taxpayer Investors must be “accredited” as defined by the U.S. Securities and Exchange Commission and may not be a principal owner of the business or involved in a full-time professional capacity.
- Qualifying business must be registered to do business in Massachusetts, have 20 or fewer full-time employees at the time of the investment, and have $500,000 or less in gross revenues in the year prior to eligibility.
- A qualifying investment is a monetary investment that is at risk and is not secured or guaranteed.
Interested applicants will be required to submit an online application. This is a two-step application process that includes information from the taxpayer investor and the qualifying business to meet the requirements for the Massachusetts Life Sciences Center to make an award. Please see sections 4-6 of the solicitation for more information regarding the application process and further details on the eligibility requirements.
Taxpayer investors that receive a tax credit award and the qualifying business in which they have invested are required to provide Annual Reports to monitor compliance.
Deadline of Jan. 16, 2024 at 5 p.m. EST for submission of applications for qualifying investments made during calendar year 2023. Applications are accepted on a rolling basis. If a business wishes to apply for early qualification as a Qualifying Business for the 2023 program, the deadline to submit their application is Dec. 15, 2023 at 5 p.m. EST. Award notifications will be made by the end of April 2024.
A business that submits a successful application for early qualification as a Qualifying Business will receive an email confirmation from Massachusetts Life Sciences Center and will be posted on the Qualified Business List.
This certification solely means that MLSC has found that each business listed meets the qualifications specified in the regulations for the 830 CMR 62.6.5: Angel Investor Tax Credit and that each business is therefore eligible to participate in MLSC’s Angel Investor Tax Credit 2023 Program.
View the regulations for the 830 CMR 62.6.5: Angel Investor Tax Credit
Impact on the Ecosystem
To ensure the Massachusetts’ ecosystem remains favorable for investors, we are proud to offer this new Angel Investor Tax Credit to encourage investment throughout the Commonwealth and in our gateway municipalities. We are confident that such investments will create jobs, build a robust workforce, support women and minority-led companies, and propel the development of new therapies, devices, and scientific advancements that are improving patient health and well-being.
Connect with us to Learn More
If you have any questions regarding the application process, e-mail: AngelTax@masslifesciences.com.