PT - JOURNAL ARTICLE AU - Joseph R. Bell AU - Jeff B. Woodmansee TI - Seeding Venture Capital: <em>Insights into State-by-State Equity Tax Credit Legislation</em> AID - 10.3905/jpe.2016.19.2.034 DP - 2016 Feb 29 TA - The Journal of Private Equity PG - 34--42 VI - 19 IP - 2 4099 - https://pm-research.com/content/19/2/34.short 4100 - https://pm-research.com/content/19/2/34.full AB - In general, states have recognized the need to diversify state economic incentives from solely targeting transient businesses to relocate into the state to creating knowledge-based homegrown economies. The intent is to reward and motivate investment and, in the process, create high-growth, high-wage employment opportunities. Currently, 26 states have enacted legislation to incent equity investors to invest in high-risk, early-stage ventures in an attempt to stimulate state economies. The practice is widespread, growing, and competitive. The credits are legislated state by state, creating unique features and rules based on state-specific incentives. The drafted legislation also reflects the hoped-for effect on state-specific economic outcomes. This article highlights state equity tax credit activity and its application to the investment community.TOPICS: Private equity, legal/regulatory/public policy, portfolio construction