Fueling innovation with Kansas Angel Tax Credits

The Kansas Angel Investor Tax Credit program offers a powerful incentive for investors and a critical lifeline for startups. And it’s designed to keep innovation thriving right here in our state.

For Investors

The Kansas Angel Tax Credit makes early-stage investing more accessible by reducing tax liability when you support a qualified Kansas company. It’s a strategic way to grow your portfolio while backing entrepreneurs solving real-world problems.

  • “We get to accelerate ideas and bring them to markets much quicker,” Romaine Redman, Chief Innovation and Strategy Officer with Kansas Commerce, told the Oread Angel Investors network at a March event. “This is the state saying that we’re ensuring your investments into promising and high-growth ventures so that we can all, in the end, benefit from it.”

Why it matters: These tax credits encourage local investment while supporting innovation at the earliest and most critical stages. It also reduces the risk tied to early-stage ventures.

Dive deeper: Accredited angel investors who make a qualified investment into an approved company may be eligible to receive a transferable Kansas Income Tax Credit for their investment. This includes up to 50% of the qualifying investment, with a cap of $100,000 per company per year and a total of $350,000 per calendar year.

Get more details and learn about the registration process here. Angels must register annually. Registration is open through November 30, 2025.

For Startups

Being a qualified business under the Kansas Angel Tax Credit program gives you a competitive edge. It incentivizes accredited investors to back your company, giving you access to the funding you need to grow, hire, and scale.

Why it matters: Becoming a Qualified Kansas Business can help you close funding rounds faster and might make your company more attractive to investors. It can accelerate commercialization by expanding funding rounds, securing customers faster and getting to market faster.

Dive deeper: There are a few requirements to get certified as a Qualified Kansas Business. The business must be headquartered in Kansas, have a gross annual revenue of less than $5 million, and be in operation for less than five years. That number jumps to 10 years for bioscience businesses.

Companies must apply by September 30 to become a 2025 Qualified Business. View the full criteria and required information to apply here.

Invest in the Nest

The Oread Angel Investors network, a program of KU Innovation Park, offers alumni, faculty, and friends of the University of Kansas the opportunity to invest in Jayhawk-affiliated startups.

The bottom line: The Kansas Angel Tax Credit is a win-win.

  • It rewards visionary investors and empowers early-stage companies to take their next big leap.
  • At KU Innovation Park, we help connect the dots between capital and opportunity, so innovation can thrive where it starts.

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