Back to basics: State taxes and the South Carolina angel investor tax credit

So far, all the posts in this angel taxes series have been about federal taxes. Some states’ capital gains match the federal treatments; some don’t (being an angel investor in California is much more expensive post-tax than in the Carolinas!).

But today’s post moves us from capital gains and into the realm of state-level angel investment tax credits.

Around 30 states have a state-level tax credit to encourage investments into early stage companies in their state.

This can be a nice additional tax benefit for angel investing. In South Carolina, the credit is easy to apply for, meaningful (it’s a credit for up to 35% of your investment against your SC tax liability), and well used. You can learn a lot more about this credit on other pages on our website, starting here.

To be fair to other assets, there are credits to encourage investment in them – film credits, textile mill renovation credits, abandoned building revitalization credits, … – in many things in SC and beyond – though they tend to be less widely applicable that the angel credit.