In 2010 the Georgia legislature passed Georgia HB 1069 creating the Georgia Angel tax credit. I did some analysis back in 2010 and decided it was bad policy back then based on the mechanics, optics, and impact. I believed then (and now) that this is a tax credit that accomplishes nothing – other than give wealthy investors an unneeded tax break. It isn’t creating jobs and it isn’t doing anything to improve Georgia’s economic competitiveness.
The way these tax credits were designed were not meant to encourage more angel funding. This tax credit is welfare for Georgia angels and the results bear out that there is no positive policy result because of this credit. It doesn’t help anyone except for angels who are looking for a way to mitigate their investment risk. – Parekh
Check out the full post to read Sanjay’s insights on the tax credit background and financials, along with his proposal for a crowdfunding tax credit.