Program incentivizes investment in leading edge startups; Spurs growth in AZ Tech innovation
PHOENIX, June 14, 2017— Life365 is proud to announce its qualification for the newly passed Angel Investment Tax Credit, signed by Governor Doug Ducey on May 22. The bill, HB2191, authorizes an additional $10 million over the next four years into the Angel Investor Tax Credit program for capital infusions into early-stage startup companies – which benefits investors, startups and the economy.
The Arizona Technology Council and its Public Policy Committee were instrumental in gathering support for the bill by rallying Arizona’s technology community and bringing forward success of the program in the past. The program’s initial infusion of $20 million in 2006 has yielded a healthy return for Arizona’s economy and businesses. Some highlights of the program’s past successes, presented to Arizona legislators by the Council, its Public Policy Committee and the Arizona Commerce Authority (ACA) include:
- 213 small businesses and 972 separate investments have been certified by the ACA
- $420 million in early-stage capital raised from companies that received the $20M in tax credits (a ratio of 21 to 1)
- 120firms received nearly $62 million in certified investments from the $20M in tax credits for an ROI of 2,100%.
- $44 million (and growing) in total tax revenue generated from $20M in tax credits (ratio of 2 to 1), paying Arizona back more than twice.
Life365 CEO and Founder Kent Dicks, has been a long time proponent of the tax credit program for its positive impact on the state’s economy, its ability to create jobs and fuel innovation. Like others, Dicks believes the program has been a key factor to helping establish Arizona as one of the fastest growing technology hubs in the US. Dicks experienced this first hand with his former startup, MedApps, which was one of the first companies to qualify for the original tax credit in 2006.Dicks says,
“The Angel Tax Credit was critical for MedApps to attract the capital investment we needed to become a viable player in the health technology space, when it was just beginning in Arizona. Solid capitalization helped us compete with larger companies, create good paying jobs and secure a successful exit for our investors. We anticipate that the newly recapitalized program will be equally important to our ability to attract investment and continue to grow our company as well as Arizona’s technology sector at large.”
Here is a Summary of the Angel Investor Tax Credit program and benefits:
- Qualified investors have 90 days after making an investment in a qualified business to file with the ACA.
- Investors can make a maximum investment of $500K in a single qualified business within the year.
- Investor can make a maximum investment of $2M total in a single qualified business.
- Investments in bioscience and businesses in rural counties: Tax credit of 12% per year for the 1st and 2nd taxable year after the investment is made, 11% 3rd year
- All other investments: 10% for each of the 3 taxable years after in which the investment is made
- Expires June 30, 2021 (4 years)
For more detailed information:
About Life365, Inc.
Life365’s scalable software platform integrates and identifies the “best fit” digital solutions for Health Systems to cost effectively connect and monitor patients at home. The Life365 platform provides a single integration point that streamlines installation and costs of introducing and managing new hardware, software and services that increase the operational efficiency of providing “Connected Healthcare” solutions. Life365 is based in Tempe, Arizona.