The president of the Indiana Chamber of Commerce says Indiana investors and entrepreneurs scored a major victory in the 2019 legislative session with lawmakers approving a change to make the state’s venture capital investment tax credit transferable. Kevin Brinegar says there was a "spike" in investment and venture capital availability in Indiana since the VCI credit was initially approved in 2002. However, he says Indiana needs to strengthen it in order to keep up with many neighboring states.
Currently, the state offers a VCI credit of 20 percent up to a $12.5 million annual cap. Brinegar suggests the state should raise that percentage to 40 or 50 percent and increase the annual cap to keep up with nearby states.
Brinegar says the state took an important step forward this year when lawmakers approved making the VCI tax credit transferable. He says the change allows investors to transfer or sell the credits, ensuring that the incentive has value even to investors that don’t have Indiana tax liability.
The chamber says the initial approval of the VCI tax credit in 2002 came on the heels of the 2000 publication of the Indiana Venture Capital Study, which the Indiana Chamber of Commerce Foundation commissioned. The organization is now releasing a series of impact reports on its studies, beginning with an overview of the impact of the VCI credit called Indiana Venture Capital Study: Then and Now.
Brinegar lays out specifics of changes he’d like to see to the VCI tax credit..