Learned of a couple of things out of Washington DC last week. Structured tax breaks are available for medical biotech start ups. Here is an article that lists the eligibility requirements. They will not apply to every company, and there is a $1 billion dollar limit to the amount of tax relief available.
Medical Biotech Tax Credit-Financial Restructuring Bill News
Secondly, Senator Chris Dodd is set to offer up amendments to his bill regarding angels in the US.
Section 412: Adjusting the Accredited Investor Standard. The thresholds for “accredited investor” would stay the same as they are currently, although the standard for net worth of $1 million would now exclude the investor’s primary residence. While ACA would have preferred no adjustment to the standard for angel investors, we believe this is a good compromise.
The act would also have the Securities and Exchange Commission review the thresholds at least every four years, with any adjustments considering the protection of investors, the public interest and the state of the economy. “We appreciate the direction to consider the economic impact of any adjustments to accredited investor standards in the future, as we believe that innovative start-up businesses are some of the most important creators of high quality jobs in the country,” said Karter.
Section 926. Regulation D Offerings.
The amendment deletes all previous language and disqualifies individuals who have been determined to be “bad actors” by Federal and State authorities from using Regulation D 506 private offerings (which include angel investments, but many other types of investments as well).
This is good news. They won’t be wiping out 77% of America’s angels with one swipe of the pen.