Senate Study Bill 1188

                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            WAYS AND MEANS BILL BY
                                            CHAIRPERSON McKIBBEN)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to criteria for community=based seed capital
  2    funds and providing a retroactive applicability date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2256SC 80
  5 tm/sh/8

PAG LIN

  1  1    Section 1.  Section 15E.45, subsection 2, paragraph b, Code
  1  2 2003, is amended to read as follows:
  1  3    b.  The fund has, on or after January 1, 2002, a total of
  1  4 both capital commitments from investors and investments in
  1  5 qualifying businesses of at least five hundred thousand
  1  6 dollars, but not more than three million dollars.  However, if
  1  7 a fund is a rural business investment company under the rural
  1  8 business investment program of the federal Farm Security and
  1  9 Rural Investment Act of 2002, Pub. L. No. 107=171, the fund
  1 10 may qualify notwithstanding having capital in excess of the
  1 11 limits set forth in this paragraph as long as the fund
  1 12 otherwise meets the requirements of this subsection.
  1 13    Sec. 2.  APPLICABILITY DATE.  This Act applies
  1 14 retroactively to January 1, 2002, for tax years beginning on
  1 15 or after that date.
  1 16                           EXPLANATION
  1 17    This bill relates to criteria for community=based seed
  1 18 capital funds.
  1 19    Currently, one of the criteria for a qualifying community=
  1 20 based seed capital fund is that the fund, on or after January
  1 21 1, 2002, has a total of both capital commitments from
  1 22 investors and investments in qualifying businesses of at least
  1 23 $500,000, but not more than $3 million.  The bill provides
  1 24 that this criteria may be waived for a fund that is a rural
  1 25 business investment company under the federal rural business
  1 26 investment program if the fund meets all other criteria.
  1 27    The bill applies retroactively to January 1, 2002, for tax
  1 28 years beginning on or after that date.
  1 29 LSB 2256SC 80
  1 30 tm/sh/8
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