Demand for "Angel" Tax Credit Increases Over Previous Year
LINCOLN, Neb. (AP) -- Demand is holding strong for a state tax incentive program designed to nurture startup businesses in Nebraska that cost the state more than $2.8 million last year.
A new report by the Department of Economic Development finds that Nebraska issued the tax credits last year to "angel investors" in 22 fledgling companies. The $2.8 million in credits is up from $2.3 million in the program's first year.
Supporters say the credit promotes investment in high-tech startups that could lead to economic growth. Opponents question whether the incentives work.
The report comes as Nebraska lawmakers conduct a review of both the state tax system and its tax incentives. The Legislature's Performance Audit Committee is working on ways to evaluate whether the incentives work as intended.
Copyright 2013 The Associated Press.