HB 448/FN (BR 431) - A. Simpson, T. Kerr, A. Koenig, R. Palumbo, S. Santoro
AN ACT relating to the angel investor tax credit.
Create new sections of KRS Chapter 154 to establish the angel investor tax credit program for certain investments in small businesses; define terms; state program purposes; list requirements for small businesses, investors and investment funds to qualify for program participation; provide application process for certification of businesses and investors, and for the award of tax credits; cap the total amount of angel investor and Kentucky Investment Fund Act tax credits available in all years at $40,000,000; require the Kentucky Economic Development Finance Authority to maintain a web site listing all businesses and investors it has certified, and all credits it has awarded; require the small business to report annually on the state of its business, and provide for tax credit recapture in certain circumstances; amend KRS 154.12-305 to include review of small businesses and investors among the stated duties of the Innovation and Commercialization Center Program; amend KRS 152.20-255 to provide that the total amount of tax credits available in the Kentucky Investment Fund Act program and the angel investor program is $40,000,000 in all years; create a new section of KRS Chapter 141 to create the angel investor tax credit; amend KRS 141.0205 to provide the ordering of the credit; provide that this act shall be known as the Kentucky Angel Investment Act.
HB 448 - AMENDMENTS
HCS/FN - Retain original provisions, except delete the application procedure for small businesses and investors to request certification and to apply for credit and instead allow the Kentucky Economic Development Finance Authority to establish the procedure through regulation; allow the authority to set the amount of the application fee; allow only individuals to qualify for participation and tax credits, and not investment funds; allow the authority to contract with a science and technology corporation to administer the certification and application procedure; establish a $4,000,000 annual limitation on credit awards; remove possible confidential information from the data required to be presented on the web site of the authority; remove fines against small businesses for failure to file report and instead allow for possible recapture of credit from the investor in certain circumstances; make conforming changes.
Feb 10-introduced in House
Feb 14-to Economic Development (H)
Feb 23-posting waived
Feb 24-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 25-2nd reading, to Rules
Feb 28-recommitted to Appropriations & Revenue (H)