Connecticut Angel Investor Tax Credit
Connecticut Innovations / Connecticut Department of Economic and Community Development (DECD)
25% of investment
25% credit for Connecticut angels
Connecticut's Angel Investor Tax Credit gives accredited investors a 25% credit against Connecticut state income tax for cash investments of at least $25,000 in a pre-approved Qualified Connecticut Business (QCB). The program is administered by Connecticut Innovations, and investors must apply for and receive a tax credit reservation number before making the investment. Eligible businesses are early-stage Connecticut companies with under $1 million in gross revenue, fewer than 25 employees (at least 75% Connecticut residents), and fewer than seven years of operation. The credit is non-refundable but can be carried forward up to five years and may be sold, assigned, or transferred — making it useful even to investors whose Connecticut tax liability is modest.
- Funding type
- Tax credit
- Level
- State
- Amount range
- $6,250 – $500,000
- Realistic amount
- A typical angel investing $25,000–$200,000 earns a $6,250–$50,000 credit. Reaching the $500,…
- Deadline
- Rolling within program cycles — Qualified Connecticut Business applications reopen June 1, 2026, with new approvals beginning July 1, 2026. Investors must secure a reservation number before investing.
- Status
- active
- States
- Connecticut
- Payment model
- tax-credit-offset
Who qualifies
- Investor must be an accredited investor (or network of accredited investors) under SEC Rule 501
- Cash investment of at least $25,000 (up to $2,000,000) in a Qualified Connecticut Business
- Investor must obtain a tax credit reservation number from Connecticut Innovations before investing
- Business must be pre-approved as a Qualified Connecticut Business (QCB) by Connecticut Innovations
- QCB must have gross revenues under $1 million in the most recent income year
- QCB must have fewer than 25 employees (including active shareholders/members/partners), at least 75% of whom are Connecticut residents
- QCB must have operated in Connecticut for fewer than seven consecutive years
- QCB must have received less than $2 million in total eligible angel investments
How to apply
-
1
Confirm the business is (or becomes) a Qualified Connecticut Business
Verify the target company holds, or applies to Connecticut Innovations for, Qualified Connecticut Business status. CI maintains a public list of approved QCBs seeking investment.
~2 hrs
-
2
Apply for a tax credit reservation number
Before investing, the accredited investor applies to Connecticut Innovations and receives a tax credit reservation number tied to the planned investment amount.
~2 hrs
-
3
Make the qualifying investment
Complete the cash equity investment (minimum $25,000) in the approved QCB and document it as required by Connecticut Innovations.
~1 hrs
-
4
Receive the credit voucher and claim on the CT return
Connecticut Innovations issues a tax credit voucher; the investor claims the 25% credit (Form CT-AIT) on the Connecticut income tax return for the year of investment. Unused credit carries forward up to five years or may be sold/transferred.
~2 hrs
Get the reservation number before the wire goes out — investments made before securing the reservation are disqualified, and this is the single most common way angels lose the credit. Because the credit is transferable, an angel with limited Connecticut tax liability can still monetize it by selling the voucher, so don't skip the credit just because your CT bill is small.
Deadline & timing
Connecticut Innovations periodically reopens the QCB application window (most recently announced reopening June 1, 2026, approvals from July 1, 2026). Investor credit reservation numbers must be obtained before the investment is made and are issued until the annual credit allocation is exhausted.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.