Kentucky investors rush to snap up state's 'angel' tax credits
Well-heeled Kentucky investors have snapped up nearly all of the state’s “angel investor” tax credits for 2017, and most of the start-up companies receiving funding are in the Louisville area.
LOUISVILLE, Ky. (WDRB) -- Well-heeled Kentucky investors have snapped up nearly all of the state’s “angel investor” tax credits for 2017, and most of the start-up companies receiving funding are in the Louisville area.
Individual investors like Louisville Mayor Greg Fischer and former Kindred Healthcare CEO Paul Diaz claimed a little more than $2.8 million in angel tax credits during the Kentucky Economic Development Finance Authority’s first meeting of the year on Thursday, state records show.
State lawmakers put a limit a $3 million annual cap on angel tax credits when they created the program in 2015. After Thursday’s meeting, the state has only $174,087 in credits remaining for 2017.
The idea is to encourage investments in risky, early-stage businesses based in Kentucky. The state gives investors tax credits to offset a portion of their investment in the start-up companies.
The credits doled out Thursday range from $4,000 to $200,000. Collectively, the investors put nearly $7 million into 27 companies.
Companies that received funding include Edumedics, a Louisville firm that helps healthcare providers lower costs; Rabbit Hole Spirits, which plans a craft distillery in the Nulu area; and Advanced Energy Materials, founded by Mahendra Sunkara, a chemical engineer and director of the Conn Center for Renewable Energy Research at the University of Louisville.
Fischer invested $100,000 – and received a $40,000 tax credit – in Lucina Health, a Louisville start-up that uses obstetrics analytics to reduce preterm birth. Fischer cut the ribbon on Lucina’s headquarters in Norton Commons last March.
Sterling Lapinski, who co-founded Louisville-based Genscape, received a nearly $7,000 credit as one of six investors in Healthcare Asset Network, a Louisville company that helps healthcare providers buy and sell excess medical supplies and surgical equipment.
Diaz invested $100,000 in Liberate Medical, a medical device company based in Crestwood.
Louisville developer Gill Holland put $10,000 into Switcher Inc., a mobile video software company based in Louisville.
Here is the full list of investments and credits: