Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 131 - Small Business Investment Tax Credit Provisions Modification
 
Author: Senator Roger C. Chamberlain
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: February 4, 2013



 

Section 1 adds the definition of “liquidation event” to mean a conversion of qualified investment for cash, cash and other consideration, or other form of equity debt or interest.

Effective for qualified small businesses certified after June 30, 2013.

Section 2 adds two requirements for businesses to receive certification as a qualified small business: 

(1) if it is engaged in research, development, or production of medical devices or pharmaceuticals requiring FDA approval, the business must not have been in operation for more than 20 years (effective the day following final enactment); and

(2) the business' securities must not be publicly traded (effective for qualified small businesses certified after June 30, 2013).

This section also adds criteria for a qualified investment in a business to be eligible for a tax credit.  Its securities must not have been publicly traded and it must not issue publicly traded securities for 180 days subsequent to the date of the qualified investment; and the business must not have had a liquidation event within 180 days after the date of the qualified investment.

Effective for qualified small businesses certified after June 30, 2013.   

Section 3 increases the allocation for the small business investment credit from $12 million to $17 million for tax years 2013 and 2014.

Effective for taxable years beginning in 2013. 

Section 4 provides that the mailing address, phone number, contact person, and type of industry of a qualified small business are public data for purposes of applications for certification of a qualified small business, certification of qualified investors, and certification of qualified funds.  Currently, only the name of the qualified small business may be disclosed.

Effective the day following final enactment.

NBP:dv 

 

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 02/04/2013
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn