Angel Tax Credit Act

S 4809, the Angel Tax Credit Act, creates a 25% federal tax credit for accredited investors who make qualified equity investments in eligible small U.S. high-tech businesses. The credit applies to investments of at least $25,000 per transaction, with a $250,000 annual limit per investor, and directly affects accredited investors and qualifying startups meeting specific criteria (e.g., under $1 million revenue, less than 25 employees, operating in fields like biotech or clean energy). The bill caps total annual credit usage at $500 million (2025-2029), allocates funds via Treasury Secretary, and requires investments to be held for at least 3 years to avoid recapture. It integrates the credit into the general business credit system and excludes related parties or venture capital funds from eligibility.