98RS HB206


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HB 206 (BR 1249) - L. Clark, J. Crenshaw, C. Hoffman, S. Johns, M. Marzian, C. Miller, R. Palumbo, S. Riggs, M. Weaver

     AN ACT relating to economic development.
     Create new sections of Subchapter 20 of KRS Chapter 154 to create and establish the Kentucky Investment Fund Program; authorize the Kentucky Economic Development Finance Authority (KEDFA) to certify investment funds and investment fund managers; permit investors whose cash contributions have been approved by KEDFA to claim state tax credit equal to forty percent of the cash contribution; require that any funds for which credits are to be taken shall be limited to investments in Kentucky businesses that have less than one hundred employees with a net income after federal taxes not greater than $2,000,000 for the preceding two fiscal years, and that have more than fifty percent of their assets, operations, and employees located in Kentucky; require the initial capitalization of a certified investment fund to be at least $1,000,000; prohibit tax credits on investments in a fund for cash contributions in excess of $10,000,000; limit the total amount of tax credits for all investors in all investment funds to $20,000,000; specify that tax credits be applied against an investor's tax liability for state income taxes, corporate license taxes, domestic life insurance property taxes, and foreign life insurance company premium receipt tax; prescribe procedures for filing credit and direct Revenue Cabinet to implement procedures; require reporting procedures; set penalties for noncompliance; create a new section of KRS Chapter 141 to establish procedures for determining the amount of tax credits by an investor; amend KRS 154.12-224, 154.47-040, 304.7-263 and 141.0205 to conform and repeal KRS 154.20-300 through 154.20-390, regarding the Commonwealth Venture Fund.


     HCS - Retain original provisions; under the definitions in Section 2, exclude as a "qualified activity" any activity principally engaged in by retail establishments and exclude as an "investor" insurance companies; remove subsection (5) of Section 3, allowing investment funds to maintain lower investment percentages in small businesses with approval of the KEDFA authority; in Section 6, specify that tax credits taken are against corporate and personal income tax and corporate license tax, excluding domestic and foreign life insurance taxes; in Section 10 (2) include quarterly reporting to the Appropriations and Revenue Committee, in addition to the original provisions of annual reporting to the Governor and LRC; remove original Sections 8 and 22 to conform and renumber sections accordingly.

     Jan 8-introduced in House
     Jan 9-to Economic Development (H)
     Feb 26-posted in committee
     Mar 3-reported favorably, 1st reading, to Calendar with Committee Substitute
     Mar 4-2nd reading, to Rules
     Mar 6-posted for passage in the Regular Orders of the Day for March 9, 1998
     Mar 9-3rd reading, passed 96-0 with Committee Substitute
     Mar 10-received in Senate
     Mar 11-to State and Local Government (S)
     Mar 19-reported favorably, 1st reading, to Consent Calendar
     Mar 20-2nd reading, to Rules
     Mar 23-posted for passage in the Consent Orders of the Day for March 25, 1998
     Mar 25-3rd reading, passed 37-0
     Mar 26-received in House; enrolled, signed by each presiding officer
     Mar 27-delivered to Governor
     Apr 7-signed by Governor

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