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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