Background
S.F. No. 730 amends the small business investment tax credit law (sometimes referred to as the “angel” investment credit) that was enacted in 2010.
Section 1 adds a definition of “liquidation event”. A liquidation event means a conversion of qualified investment for cash, cash and other consideration, or any other form of equity or debt interest. The section applies to qualified small business certified after June 30, 2013.
Section 2 provides that to be certified as a qualified small business, the business may not have issued securities and that the business’s proprietary technology is not more than ten years old. In order for an investment in a business to be eligible for a tax credit the business must not have issued securities that are traded on a public exchange, must not issue securities that are traded on a public exchange within 180 days of the qualified investment, and must not have a liquidation event within 180 days after the date on which the qualified investment was made.
This section is effective for businesses certified after June 31, 2013.
Section 3 increases the cap on program credits for a taxable year from $12,000,000 to $20,000,000 for tax years 2013 and 2014.
Section 4 expands the public data classification of business information submitted to the commissioner of employment and economic development to include as public data information concerning mailing address, telephone number, e-mail address, contact person’s name, and industry type of a qualified small business if the business is certified by the commissioner.
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