A bill to amend the Internal Revenue Code of 1986 to allow a credit against income tax for equity investments by angel investors.

Bill 118 s 4809, also known as the Angel Tax Credit Act, is a proposed amendment to the Internal Revenue Code of 1986. The purpose of this bill is to provide a tax credit for individuals who make equity investments in small businesses, known as angel investors.

Under this bill, angel investors would be eligible for a credit against their income tax for a portion of their equity investments in qualifying small businesses. This credit aims to incentivize individuals to invest in early-stage companies, which can help stimulate economic growth and job creation.

The bill does not specify the exact amount of the tax credit or the criteria for qualifying small businesses. However, it is likely that the credit would be a percentage of the investment amount and that qualifying businesses would be those that meet certain criteria, such as being a certain size or in a specific industry. Overall, the Angel Tax Credit Act seeks to encourage investment in small businesses by providing a financial incentive for angel investors. This could potentially benefit both investors and small businesses, as well as the economy as a whole.