Ohio’s investor tax credit: Who’s using it (and who isn’t)

People love talking about the value of getting investor tax credits. Companies seem to love […]

People love talking about the value of getting investor tax credits. Companies seem to love applying for tax credits.

Using the investor tax credit? That’s different.

A total of 590 companies have been approved for Ohio’s Technology Investment Tax Credit, a program in which investors who put money in approved companies are eligible for a tax credit of up to 25 percent of the amount they invest. But less than half  (291) have actually raised any money through the tax credit, according to data from the state’s Department of Development.

What’s more, while $1.5 million is the maximum investment amount that can be raised with the tax credit, only 80 companies have even raised $750,000 in equity toward the credit. Only 11 companies have raised essentially the maximum.

In life-science hungry Ohio, med-tech companies in general seem like they could take much better advantage of the tax credit. Of the 11 companies to max out on tax-credit-eligible investments, four are involved in healthcare, which isn’t bad. But less than a quarter of all companies that actually raised money with the tax credit are connected to the life sciences and healthcare.

Todd Federman, executive director with Cleveland-area angel investment group North Coast Angel Fund, said he wasn’t surprised that less than half of the companies approved for the tax credit have been able to cash in. It’s a given that many of the early-stage businesses looking to raise money through the tax credit are small, risky and fraught with uncertainty – not exactly thrilling prospects for even the bravest of angel investors.

This may just be evidence of how challenging it can be to raise capital from private investors,” Federman said.

You can see every company that’s raised money with the tax credit since 1996. Following is list of all the healthcare companies that have been approved for — and actually used — the credit. Some are well-known, some are obscure, some no longer exist.

1. Cleveland HeartLab, $1.5 million

1. Imalux, $1.5 million

1. Rhino Systems, $1.5 million

1. Thermedx, $1.5 million

5. Percuvision, $1.45 million

6. Charles H. Mack & Associates, $1.42 million

7. Minimally Invasive Devices, $1.41 million

8. Workflow.com, $1.4 million

9. Synapse Biomedical, $1.39 million

10. Within3, $1.35 million

11. AssureRx, $1.34 million

12. Ogenix, $1.24 million

13. Monarch Teaching Technologies, $1.23 million

14. PeriTec Biosciences, $1.2 million

15. DIRAmed, $1.19 million

16. NDI Medical, $1.12 million

17. SecuReach Systems, $1.09 million

18. Endosphere, $1.05 million

19. SpineForm, $1.02 million

20. PocketScript, $1 million

21. InfraRed Imaging Systems, $959,900

22. Neuros Medical, $890,520

23. Cardio Energetics, $870,000

24 Thermalin Diabetes, $867,000

25. AcelleRX Therapeutics (now Juventas Therapeutics), $858,333

26. Noteworthy Medical Systems, $828,049

27. Great Lakes Pharmaceuticals, $793,935

28. Copernicus Therapeutics, $734,376

29. TheraVasc, $724,139

30. LifeHealth Science, $710,000

31. CleveX, $707,931

32. NeoMed Technologies, $635,182

33. Nanostatistics, $588,172

34. CardiOx, $577,031

35. Future Path Medical, $575,000

36. Allostatix, $480,000

37. Physician Technology of Ohio, $421,428

38. Checkpoint Surgical, $374,994

39. Paraspinal Diagnostic, $363,332

40. Cervilenz, $273,333

41. Gerard Ventures, $260,000

42. Joint Vue, $250,000

43. Radar Medical Systems, $222,000

44. OtoSonics, $215,000

45. Verterbration, $175,000

46. iMedd, $150,000

47. Intelecare, $150,000

48. Phylatron, $150,000

49. Updox, $143,750

50. Athersys, $143,013

51. NCRx Optical Solutions, $120,000

52. YourQuest Personal Health Solutions, $120,000

53. Aria Analytics, $100,000

54. Advanced BioSensors, $80,000

55. Freedom Meditech, $75,000

56. Genomatix, $74,000

57. Xanthostat Diagnostics, $60,000

58. Boundaryless Health, $50,000

59. SironRx Therapeutics, $50,000

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