RT Journal Article
SR Electronic
T1 Seeding Venture Capital: <em>Insights into State-by-State Equity Tax Credit Legislation</em>
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 34
OP 42
DO 10.3905/jpe.2016.19.2.034
VO 19
IS 2
A1 Joseph R. Bell
A1 Jeff B. Woodmansee
YR 2016
UL https://pm-research.com/content/19/2/34.abstract
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