Text: HSB00706 Text: HSB00708 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 15E.51 VENTURE CAPITAL FUND
1 2 INVESTMENT TAX CREDITS.
1 3 1. For purposes of this section, "venture capital fund"
1 4 means a private seed and venture capital partnership or entity
1 5 fund.
1 6 2. A tax credit shall be allowed against the taxes imposed
1 7 in chapter 422, divisions II, III, and V, and in chapter 432,
1 8 and against the moneys and credits tax imposed in section
1 9 533.24, for a portion of a taxpayer's equity investment in a
1 10 venture capital fund. An individual may claim a tax credit
1 11 under this section of a partnership, limited liability
1 12 company, S corporation, estate, or trust electing to have
1 13 income taxed directly to the individual. The amount claimed
1 14 by the individual shall be based upon the pro rata share of
1 15 the individual's earnings from the partnership, limited
1 16 liability company, S corporation, estate, or trust.
1 17 3. The amount of a tax credit shall not exceed six percent
1 18 of the taxpayer's equity investment in venture capital funds.
1 19 4. The aggregate amount of tax credits that may be issued
1 20 pursuant to this section shall not exceed five million
1 21 dollars.
1 22 5. A taxpayer shall not claim the tax credit prior to the
1 23 third tax year following the tax year in which the investment
1 24 is made. Any tax credit in excess of the taxpayer's liability
1 25 for the tax year may be credited to the tax liability for the
1 26 following five years or until depleted, whichever is earlier.
1 27 A tax credit shall not be carried back to a tax year prior to
1 28 the tax year in which the taxpayer claims the tax credit.
1 29 Sec. 2. NEW SECTION. 422.11G VENTURE CAPITAL FUND
1 30 INVESTMENT TAX CREDIT.
1 31 The tax imposed under this division, less the credits
1 32 allowed under sections 422.12 and 422.12B, shall be reduced by
1 33 a venture capital fund investment tax credit authorized
1 34 pursuant to section 15E.51.
1 35 Sec. 3. Section 422.33, Code Supplement 2001, is amended
2 1 by adding the following new subsection:
2 2 NEW SUBSECTION. 13. The taxes imposed under this division
2 3 shall be reduced by a venture capital fund investment tax
2 4 credit authorized pursuant to section 15E.51.
2 5 Sec. 4. Section 422.60, Code 2001, is amended by adding
2 6 the following new subsection:
2 7 NEW SUBSECTION. 5. The taxes imposed under this division
2 8 shall be reduced by a venture capital fund investment tax
2 9 credit authorized pursuant to section 15E.51.
2 10 Sec. 5. NEW SECTION. 432.12B VENTURE CAPITAL FUND
2 11 INVESTMENT TAX CREDIT.
2 12 The tax imposed under this chapter shall be reduced by a
2 13 venture capital fund investment tax credit authorized pursuant
2 14 to section 15E.51.
2 15 Sec. 6. Section 533.24, Code 2001, is amended by adding
2 16 the following new unnumbered paragraph:
2 17 NEW UNNUMBERED PARAGRAPH. The moneys and credits tax
2 18 imposed under this section shall be reduced by an investment
2 19 tax credit authorized pursuant to section 15E.51.
2 20 Sec. 7. IMPLEMENTATION OF ACT – MONEYS AND CREDITS TAX.
2 21 Section 25B.7 shall not apply to the tax credit authorized
2 22 pursuant to section 15E.51 and allowed against the moneys and
2 23 credits tax.
2 24 Sec. 8. EFFECTIVE AND RETROACTIVE APPLICABILITY DATE
2 25 PROVISIONS. This Act, being deemed of immediate importance,
2 26 takes effect upon enactment and applies retroactively to
2 27 January 1, 2002, for tax years beginning on or after that
2 28 date.
2 29 EXPLANATION
2 30 This bill allows a tax credit for equity investments in
2 31 venture capital funds against personal, corporate, franchise,
2 32 insurance premium, and moneys and credits taxes.
2 33 The bill provides that the amount of the tax credit shall
2 34 not exceed 6 percent of the taxpayer's equity investment in
2 35 venture capital funds. The bill provides that the aggregate
3 1 amount of tax credits issued pursuant to this bill shall not
3 2 exceed $5 million.
3 3 The bill provides a taxpayer shall not claim the tax credit
3 4 prior to the third tax year following the tax year in which
3 5 the investment is made. The bill provides that any tax credit
3 6 in excess of the taxpayer's liability for the tax year may be
3 7 credited to the tax liability for the following five years or
3 8 until depleted, whichever is earlier. The bill provides that
3 9 a tax credit shall not be carried back to a tax year prior to
3 10 the tax year in which the taxpayer claims the tax credit.
3 11 The bill provides that state funding requirements shall not
3 12 apply to tax credits allowed against the moneys and credits
3 13 tax.
3 14 The bill takes effect upon enactment and applies
3 15 retroactively to January 1, 2002, for tax years beginning on
3 16 or after that date.
3 17 LSB 7040HC 79
3 18 tm/cls/14
Text: HSB00706 Text: HSB00708 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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