Tag: credits

New York’s Proposed Angel Investor Tax Credit @ Paper this Deal

I’ve been following a bill proposed by New York Assembly member Kellner for a while now.  It is an Angel Investor Tax Credit, available to investors in “qualifying businesses”.   New York Bill No. A09958.  Investors would receive a credit based on 25% of their investment, but the maximum investment you can obtain the credit for is capped at $250,000.

A qualifying business is one that:

  1. has gross revenue of less than $1M for the year before the investment;
  2. has no more than 20 full time employees (60% must reside in NY State);
  3. has operated in the State of NY for no more than seven consecutive years; and
  4. has received no more than $2M in investments (eligible for the credit from one or more angel investors)

To be eligible for the credit, the angel investor must be an accredited investor as defined in Rule 501 of Regulation D, except for those that either 1. control fifty percent or more of the company being invested in, or 2. any company whose normal business activities include venture capital investment.

First, the idea is noteworthy.  A number of other states have passed similar credits to encourage angel investing.  In Wisconsin, they passed such a credit and angel investments increase from $30M in 2005 to $180M in 2010.  That’s staggering.   I would prefer to see that the credit be available for seed/angel and venture capital companies, however.  I think excluding them is a bad idea.

There are some critics of state angel investor tax credits.  They are usually out of state VC funds and investors.   They say that these types of credits would discourage interstate investing, such as Boston based VC’s investing in New York startups, and other such situations.  I don’t know if those critiques are warranted, however, as out-of-state investors aren’t penalized in any way other than having more competition in New York State.  As investors in-state are now sure they will at least recoup 25% of their investment in the year after they invest, as well as having the possibility for large returns (i.e. the home run) down the road.

The bill was referred to the ways and means committee in April and held for consideration there in June.  There hasn’t been much action on it since then and won’t be until at least 2013.  It is something to keep in mind however as any incentive that can be put on the table to get the economy moving, especially the startup community is a good idea.  Access to capital is a big issue for many young companies.

Green Building Financial Incentives in New York @ Paper this Deal

I’ve done a quick post on these before, but believe these incentives need a more detailed analysis.

Business owners considering the construction of a new building or the substantial renovation of an existing building should consider using green building practices to capitalize on the economic incentives available.

While these incentive programs are not always well known or publicized, they can lead to substantial savings, both initially and throughout the life of the building.

These hard and fast savings when combined with the other benefits of green building—energy savings, increased foot traffic, higher rents, positive public relations, increased employee morale, productivity, and reduced sick days, among others—make the use of green building practices beneficial.

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Obama’s Better Building Initiative – Green Building @ Paper this Deal

On Monday, President Obama unveiled his $3.8 trillion budget for next year 2013.  A huge amount of money is proposed for clean energy and infrastructure improvements, to stimulate the economy.

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Green Building – Financial Incentives @ Paper this Deal

Whether you are considering a new construction project, substantial renovation, or the operations and maintenance of an existing building, the benefits of incorporating green building and sustainable practices should not be overlooked.  There are incentives on the federal, state and local level for building green and these should be factored into a project in the early planning stages to maximize benefits.  The federal government offers a deduction available through 2013 known as the Commercial Building Tax Deduction, which grants a tax deduction based on energy efficient improvements installed in the building envelope, HVAC system and lighting system.  The State of New York offers the Green Building Tax Credit, which is potentially available for buildings that meet certain green building regulations.

Also available are various other grants and incentives related to energy efficiency and use of sustainable energy in new and existing buildings.  In addition to the incentives discussed above, there are numerous other green building issues which should be considered including green lease provisions, green bonds and other financing mechanisms, and contracting issues with respect to design professionals and contractors involved in green building projects.

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