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Yes, it's true that Washington state offers a tax incentive for investors in qualified businesses, which includes angel investors. The state's Business and Occupation (B&O) tax rate of 1.5% on capital gains does not apply to certain gains from the sale or transfer of qualified business investments. However, this specific benefit is limited to Washington state and does not apply at the federal level or to all states. To qualify for the incentive, the investments must meet specific criteria, such as being in a company with an annual gross revenue of less than $1 billion, being held for a minimum of five years, and the company engaging in research and development or manufacturing activities in the state. Keep in mind that even though the gain may be exempt from state taxes in Washington, you'll still need to report the capital gain on your federal tax return and pay any applicable federal taxes. Tax incentives and rates vary by state, so it's essential to research the rules and regulations applicable to your specific location.