Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 1602-P. Definitions

The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Account.”  The Angel Investment Venture Capital Account established under section 1604-P.  1

“Angel investor.”  A person or entity whose purpose is to make investments in companies.

“Eligible applicant.”  An angel investor or a qualified business venture.

“Office.”  The Executive Offices of the Governor.

“Program.”  The Angel Investment Venture Capital Program established under section 1603-P.  2

“Qualified business venture.”  A business that:

(1) Is primarily focused on commercialization of research and development, technology transfers or the application of new technology, or if not engaged in those industries, the office makes a determination that the qualified investment will be highly beneficial to the economic growth of this Commonwealth.

(2) Has at least 51% of its employees employed in this Commonwealth at the time the qualified business venture applies for a qualified investment.

(3) Has fewer than 100 employees at the time the qualified business venture applies for a qualified investment.

(4) Has been in operation in this Commonwealth for not more than five consecutive years at the time the qualified business venture applies for a qualified investment.

(5) Has not received more than $2,000,000, in the aggregate, in private equity investments of which not more than $1,000,000 was invested by a single investor.

(6) Is not engaged in a business involving the following:

(i) Real estate.

(ii) Real estate development.

(iii) Insurance.

(iv) Professional services provided by an accountant, a lawyer or a physician.

(v) Retail sales, except when the primary purpose of the business is the development or support of electronic commerce using the Internet.

“Qualified investment.”  A payment of money or its equivalent for a private equity interest in a qualified business venture.