Each year, the Technology Association of Georgia surveys CEOs, CIOs and other key Georgia decisionmakers from around the state to learn what’s most important to them.

In 2015, more than 300 Georgia leaders responded. A significant majority told us they favored tax incentives and credits to encourage innovative business activity. Incentives based on research and development spending were the most frequently mentioned tax incentives, followed by credits aimed at fostering start-up businesses. Incentives based on hiring, company relocation and investment were also among the top five.

In 2010, the General Assembly anticipated this need and approved the Angel Investor Tax Credit (House Bill 1069). The objective of the income tax credit was to encourage angel investment, a primary source of funding for early stage businesses. Angel investors are generally individuals who risk their private capital to fund early stage businesses. Innovation typically drives these businesses, which develop intellectual property, create high-paying jobs and generate revenue for the state’s local economies.

The formation and growth of small businesses are an essential component of our economic engine. Investment in that engine is the fuel that drives the creation of high-paying jobs for Georgia.

The income tax credit is 35 percent of the investment, capped at $50,000. Originally scheduled to sunset in 2013, the Legislature extended the credit to qualifying investments made in 2014 and 2015 so it could study the benefits and use of the credit.

Since the angel investor law took effect in January 2011, 225 qualified businesses have registered with the Georgia Department of Revenue to be eligible for the tax credit. However, individuals are not eligible to claim the tax credit until two years after the investment. Due to this two-year delay, we have data only on the amount for investors pre-approved in 2013 and 2014 for investments made in 2011 and 2012.

In 2011, qualified investments totaled $746,014; pre-approved credits, $261,105, and the number of pre-approved taxpayers, 12. In 2012, qualified investment was $2,055,761; pre-approved credit, $694,517, and pre-approved taxpayers, 28.

These numbers indicate that the qualified investment, pre-approved credit and taxpayers pre-approved more than doubled from the previous year. We anticipate this upward trend will continue.

Without the Angel Investor Tax Credit, many start-ups will neither survive nor become eligible for the next phase of venture capital financing. Or, they will find resources outside our state and be forced to move jobs to follow the money. With 80 percent of all new jobs in Georgia coming from small business and entrepreneurial start-ups, this credit is spurring our economy and workforce.

The tax credit has been a great tool for start-ups seeking capital since 2011. The results have been positive thus far, and we anticipate accelerating participation in the future. More investors have jumped in because of the credit, and more young companies are being funded.

Continuing to provide primary sources of funding for these early stage businesses will keep new business and high-paying jobs in Georgia and will generate revenue for the state. The Technology Association of Georgia believes it is fundamentally important that the Legislature extend the Angel Investor Tax Credit during the 2015 legislative session.

Tino Mantella is the president/CEO of the Technology Association of Georgia.