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
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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
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