(a) By February 1 of each year, a qualified small business that received an investment that qualified for a tax credit under this chapter must submit an annual report to the Director and pay a filing fee of $100. A qualified small business must submit reports for 5 years following the year in which it received an investment that qualified for a tax credit under this chapter. All filing fees collected must be deposited in the Angel Investor Job Creation and Innovation Act Administration Fund. A qualified small business’s report must certify that the qualified small business meets all of the following:

(1) Is a legal entity qualified to do business in this State that has its headquarters in this State.

(2) Has at least 51% of its common law employees employed in this State and 51% of its total compensation paid is compensation for work provided in this State.

(3) Section 20D-102(c)(3) of this title.

(4) Used the qualified investment for a qualified expenditure.

(b) A qualified investor or a qualified fund that made an investment that qualified for a tax credit under this chapter must submit a report certifying that 180 days have passed and the qualified investor or qualified fund remains invested in the qualified small business as required by § 20D-106 of this title.

(1) Qualified investors are deemed to have not remained invested in a qualified small business if, within 180 days after the qualified investment was made, the qualified small business ceases all operations and becomes insolvent or if the investment is deemed to be worthless.

(2) The Director shall prescribe the form of the report required under this subsection. A qualified investor or a qualified fund must submit the report required under this subsection in the form prescribed by the Director.

(c) (1) In each of the 3 years after the date on which the qualified investment was made, each qualified investor or qualified fund must submit a report on which the qualified investor or qualified fund must certify that the qualified investor or qualified fund remains invested in the qualified small business.

(2) The Director shall prescribe the form of the report required under this subsection. A qualified investor or a qualified fund must submit the report required under this subsection in the form prescribed by the Director.

(d) A qualified small business that ceases all operations and becomes insolvent must file a final annual report documenting its insolvency.

(1) In subsequent years following the qualified small business’s insolvency, the business is exempt from requirements of this section related to filing an annual report, paying a filing fee, and subjecting the business to a fine for its failure to file a report.

(2) If the business ceases all operations and becomes insolvent after 3 years from the date of the qualified investment, the business is not subject to the repayment obligation specified in § 20D-108 of this title.

(3) The Director shall prescribe the form of the report required under this subsection. A qualified small business must submit the report required under this subsection in the form prescribed by the Director.

(e) A qualified small business, qualified investor, or qualified fund that fails to file an annual report as required under this subdivision is subject to a $500 fine.

(f) The Division shall include in its annual report to be issued on or before December 1 of each year, the number of businesses and investors qualifying for the Angel Investor Job Credit, the total credits allocated, and any other data as may be required to determine the success of this program.

81 Del. Laws, c. 244, § 3.