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Connecticut Angel Investor Tax Credit Program
General · Connecticut Innovations · CT
The Connecticut Angel Investor Tax Credit Program, run by Connecticut Innovations, gives accredited investors a 25% state tax credit for investing at least $25,000 in early-stage, small Connecticut businesses, making it easier for those startups to attract funding.
The Connecticut Angel Investor Tax Credit Program is a state-run incentive administered by Connecticut Innovations. Rather than giving cash directly to a small business, this program provides accredited investors with a 25% Connecticut income-tax credit when they make cash investments of at least $25,000 into approved early-stage Connecticut businesses. The goal is to make angel investing more attractive, which in turn helps startups raise capital they might not otherwise access.
For a small-business owner, the practical value of this program is indirect: it doesn't hand money to the company, but it can make your business more appealing to investors because those investors receive a tax break for putting money into your company. To benefit, a business must first qualify as a 'Qualified Connecticut Business,' meaning it is early-stage, has under $1 million in gross revenue, fewer than 25 employees, has been operating for less than 7 years, and has at least 50% of its employees residing in Connecticut.
This is a state-level program limited to Connecticut, and the sponsor is Connecticut Innovations, the state's quasi-public authority focused on innovation and economic growth. The funding instrument is structured as a tax credit rather than a grant, so businesses should understand it operates differently from a typical grant program — the direct financial benefit flows to the investor, not the company.
Because program rounds, current eligibility rules, and credit availability can change year to year, business owners should confirm current details, including whether rounds are open and any updated eligibility requirements, directly at the official Connecticut Innovations website before relying on this program as part of a fundraising strategy.
Who qualifies
How to apply
Questions people ask
Is this a grant or a loan?
Neither — it's a state income-tax credit given to investors, not cash provided directly to the business.
Do I have to repay this funding?
There's no repayment involved for the business, since the credit goes to the investor, not the company.
Who is eligible?
Early-stage Connecticut businesses with under $1M in gross revenue, fewer than 25 employees, less than 7 years in operation, and 50%+ CT-resident employees.
How much money can my business get?
The program itself doesn't give cash to businesses; it gives investors a 25% tax credit on investments of at least $25,000.
What's the minimum investment required to trigger the credit?
$25,000, according to the program summary.
When is the deadline to apply?
Check current rounds — confirm at the official source for open application periods.
Where do I apply?
At the official Connecticut Innovations page: https://ctinnovations.com/angel-investor-tax-credit-program/.
Is the funding taxable?
Confirm at the source — the credit benefits the investor's tax liability, not the business's income directly.
Who runs this program?
Connecticut Innovations, the state's quasi-public innovation and economic development authority.
Is this available outside Connecticut?
No, it's limited to Connecticut businesses and Connecticut taxpaying investors.
Does my business need to be a startup?
Yes, it must be an early-stage business operating for less than 7 years.
Can any investor claim the credit?
The program is designed for accredited investors making qualifying cash investments; confirm specific investor requirements at the source.
Opportunity number: not published. Source: curated + verified (official state source, 2026). GetFundedUSA is independent and not affiliated with Connecticut Innovations; always confirm current deadlines, amounts and eligibility on the sponsor's own page before applying.