Pass-through entity investors such as S Corporations, partnerships, and LLCs have special provisions to share the advantages with their owners. Read the law for details; the accounting could get complicated.
angels usually invest as individuals or via LLCs and super-angels and VCs are usually structured as partnerships so the exclusion won't apply to most active early stage investors.
> angels usually invest as individuals or via LLCs
LLCs are corporations.
I wonder what the bill actually says.
LLCs are not corporations, at least not in the United States.
My mistake - I thought that the limited liability aspect was defining of corporations.