About this programme
The Angel Investment program is run by the Arizona Commerce Authority (ACA) under A.R.S. Section 41-1518. Its principal objective is to expand early-stage investment in targeted Arizona small businesses. It does this by giving tax credits to investors who put money into small businesses that the ACA has certified as "qualified small businesses," and by eliminating Arizona capital gains tax liability tied to the disposal of those investments.
As of July 1, 2021, the program was extended, and the ACA can authorize $2.5 million in tax credits each fiscal year for the next 10 years. The ACA publishes a running chart of the remaining tax credits available for the current fiscal year, and maintains a public log of the small businesses it has certified under the program.
Who can apply
For a small business to be a "qualified small business," it must be a corporation, limited liability company, partnership, or other business entity (sole proprietors are ineligible), maintain part of its operations in Arizona, and have at least two principal non-administrative full-time-equivalent employees who are Arizona residents. It must not be principally engaged in business activities the ACA has excluded, must not engage in human cloning or embryonic stem cell research, and must not have assets exceeding $10 million (excluding intellectual property and qualified investments).
For an investor to be a "qualified investor," they must be an individual, limited liability company, sub-chapter S corporation, or partnership (C corporations are not eligible). The investor must submit an application to the ACA within 90 calendar days of making the qualified investment, and immediately before investing, the investor (together with its affiliates) cannot already hold more than 30% of the total voting power of the small business's equity securities.
Investment amounts made by an investor and its affiliates in a single year, up to $500,000, generate tax credits; any amount over $500,000 in that year does not generate additional credits.
For an investment to be a "qualified investment," it must be made on or after July 1, 2006, be an equity security, be at least $25,000 in cash or a cash equivalent (such as a cashier's check or traveler's check), and be reported to the ACA within 90 calendar days after the investment is made.
How to apply
- Request a username and password from the ACA to access its application system.
- Once you receive login credentials, log in to the EASY Application Portal (the ACA's Salesforce-based application site) to complete the application.
- Submit the application within 90 calendar days of making the qualified investment; this deadline applies to the investor's tax credit application, and the investment itself must also be reported to the ACA within 90 calendar days of being made.
Frequently asked
How much can an investor put in and still get a tax credit?
Investment amounts made by an investor and its affiliates in a single year up to $500,000 generate tax credits. Any amount invested above $500,000 in that year does not generate additional credits.
Is there a minimum investment size?
Yes. A qualifying investment must be at least $25,000 in cash or a cash equivalent, such as a cashier's check or traveler's check.
How long do I have to apply after investing?
You must submit your tax credit application within 90 calendar days after making the qualified investment, and the investment itself must be reported to the ACA within that same 90-day window.
Can a C corporation claim this credit as an investor?
No. Qualified investors must be an individual, a limited liability company, a sub-chapter S corporation, or a partnership; C corporations are not eligible.
Is there a limit on how much control an investor can already have in the company?
Yes. Immediately before making the investment, the investor, together with its affiliates, cannot already hold more than 30% of the total voting power of the qualified small business's equity securities.
Does the state have a limited pool of these credits?
Yes. The ACA can authorize $2.5 million in Angel Investment tax credits per fiscal year, under the program's 10-year extension that began July 1, 2021, and publishes a running chart showing the remaining credits available.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.