CAPCO Programs

Birmingham Business Journal announces the start of Alabama’s CAPCO program and Enhanced Capital Partners’ interest in opening an office in Birmingham:

A new state program that seeks to generate more dollars for startup businesses by giving tax credits to insurance companies that invest in venture capital firms has begun.

Alabama’s CapCo (certified capital companies) program, approved during the recent legislative session and signed into law April 18, was to have started July 1. But the state agency charged with writing the rules that govern the program delayed implementation to give more time for public input.

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The Birmingham Business Journal reports that over the span of ten years, $100 million will be invested through the Alabama CAPCO program:

A long-delayed state program that will provide a much-needed shot of venture capital for Alabama startups is finally under way. The program, signed into law nearly two years ago, provides $100 million in premium tax credits over the next decade to dozens of insurance companies that invest in certified capital companies, or CapCos. The six authorized CapCos, each run by one in-state and one out-of state venture firm, will reinvest the funds in qualified Alabama businesses seeking money to grow.

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