About this programme
The Kansas Angel Investor Tax Credit (KAITC) is administered by the Kansas Department of Commerce. It lets accredited investors earn up to a 50% state tax credit for putting money into a qualified early-stage Kansas business, giving founders a way to make their raise more attractive to angel money while the state effectively co-invests through the tax code.
The program runs on two parallel tracks. A business first applies to become a 'Qualified Kansas Business' and gets a written award of tax credits from Commerce. Only after that approval can it accept investments that generate credits for its investors. Investors then separately register with Commerce to claim credits against qualifying investments.
How it works
The tax credit is worth up to 50% of an accredited investor's qualifying investment.
Investments made before the business receives written approval of its tax credit award from Commerce are not eligible for tax credits, so timing matters: the business's approval has to come first.
For businesses, the online application opened October 1, 2025 and runs through September 30, 2026 for the 2026 calendar year, with a $250 non-refundable application fee.
For investors, registration opens January 1, 2026 and runs through November 30, 2026, with a $150 non-refundable registration fee.
Other fees: a $50 charge to replace a lost tax credit certificate, a 2.5% service fee on credit/debit card payments, and a $1.50 service fee on ACH payments. All fees are non-refundable.
The program is authorized under Kansas Statutes 74-8131 through 74-8137.
Who can apply
The business must maintain its headquarters and qualifying operations in Kansas for a minimum of 5 years (10 years for bioscience companies), sign an agreement with the Kansas Department of Commerce before any tax credits are issued, and stay in good standing through that holding period.
The investor must be accredited under C.F.R. Section 230.501(a). If investing through an LLC or other entity, every equity owner or beneficiary of that entity must also be an accredited individual investor.
An investing entity must be established and operated solely for the purpose of making investments in other entities. Pass-through structures, such as an LLC investing into another LLC that then invests in the business, are not allowed.
How to apply
- Business: submit the online application through the Kansas Commerce application portal, starting October 1, 2025, and pay the $250 non-refundable application fee.
- Business: wait for written approval of the tax credit award from the Kansas Department of Commerce before accepting any investment meant to qualify for credits.
- Investor: register starting January 1, 2026 and pay the $150 non-refundable registration fee, submitting the required investor registration documentation.
- Investor: only invest in the business after it has received its written award approval, since earlier investments do not qualify.
Frequently asked
How large is the tax credit?
Up to 50% of the investment for accredited investors.
Can an investor invest before the business is approved?
No. Investments made prior to written approval of the tax credit award by the Kansas Department of Commerce are not eligible for tax credits.
Who counts as an accredited investor here?
Anyone accredited under C.F.R. Section 230.501(a). If investing through an entity, every equity owner or beneficiary of that entity must also be an accredited individual investor, and pass-through investment structures are not allowed.
How long must my business stay headquartered in Kansas?
A minimum of 5 years, or 10 years for bioscience companies, and it must sign an agreement with Commerce and stay in good standing throughout that period.
What are the application windows?
For the 2026 calendar year, business applications run October 1, 2025 through September 30, 2026, and investor registration runs January 1, 2026 through November 30, 2026.
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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.