State Commerce Dept. lowers fees to invest in businesses

TOPEKA, Kan. (KSNT) – The Kansas Angel Investor Tax Credit program helps dozens of businesses each year get thousands of investment dollars.

Now it’s even easier and cheaper for businesses to take part.

Commerce Secretary David Toland has reduced the fee to apply from 750 dollars to 250 dollars this year.

“Making sure that we’ve got an environment where there aren’t barriers in their way and we felt like this fee was a barrier and so this was an easy thing we could do immediately to eliminate a barrier and help more small businesses get on their feet,” said Toland.

Businesses in the program have to be involved in innovative technology or services which are what many communities are clamoring for.

“We’ve got some new programs that we’re launching, one of those divisions is focused more on innovative companies and high-skilled, high-wage, high-demand types of industries, so that definitely is the future for most communities,” said Molly Howey, Senior Vice President of Economic Development for Go Topeka.

In the program, if a person invests $50,000 into a qualifying business, they will get $25,000 back from the state.

“A biotechnology company that is pioneering a cure for cancer and so they’re doing research and they’ve got a concept and they need investors to help them take that concept and turn it into a product, that’s what the Angel program does and why it’s so important,” said Toland.

It’s that investment that cities are excited about.

“What the Department of Commerce is doing is making us more competitive as a state which then, in turn, helps Topeka and Shawnee county as well,” said Howey.

Each year anywhere from 30 to 50 have been participating in the program.

Toland warned that the program ends next year and it’s up to the legislature whether to extend it.