Provides relative to the Angel Investor Tax Credit Program. (Item #19) (8/1/20) (EN DECREASE GF RV See Note)
Impact
The passage of SB17 is expected to have a substantial impact on state laws concerning tax credits and investment incentives. By extending the application period, the bill aims to stimulate local economic development through increased funding opportunities for startups. This change could lead to a rise in entrepreneurial activity within the state, as potential investors are given more time to apply for tax credits that will offset some of the risks associated with funding new ventures.
Summary
Senate Bill 17 (SB17) amends the Angel Investor Tax Credit Program by extending the application period for eligibility for tax credits related to investments in entrepreneurial startups. The legislation was introduced by Senators Hewitt and Milligan and aims to encourage investment in emerging businesses by providing financial incentives. The bill specifically states that no credits will be granted for applications received after the expiration date of July 1, 2023, thereby updating the timeline for potential investors looking to benefit from the program.
Sentiment
General sentiment around SB17 appears positive, particularly among business advocates and stakeholders in the startup community who view the extension as an opportunity to attract more investors. Supporters argue that the continued availability of these tax credits will motivate individuals and firms to invest, thereby creating jobs and fostering innovation. However, some skepticism exists regarding the overall effectiveness of tax credits as a long-term strategy for sustainable economic growth.
Contention
Noteworthy points of contention may arise around the long-term implications of extending tax credits. Critics may express concerns that while the bill promotes short-term gains, it could lead to dependency on state incentives and financial unsustainability for startups. Furthermore, discussions may arise regarding the equity of tax benefits granted under the program, which could favor certain sectors or investors disproportionately. Overall, the bill serves as a focal point for larger discussions on how best to support economic growth while balancing fiscal responsibilities.
Provides for eligibility for the Angel Investor Tax Credit for investments made in federal opportunity zones. (Item #19) (gov sig) (EN DECREASE GF RV See Note)
Converts the Angel Investor Tax Credit Program to the Angel Investor Rebate Program and provides for the rebate program (EN -$20,000,000 GF RV See Note)
Establishes a baseline limit on all claims against income and franchise tax for Angel Investor Tax Credit Program filed during a fiscal year on a first-income, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig) (OR SEE FISC NOTE GF RV)