Texas Senate Bill SB2585

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/15/09

Caption

Relating to reauthorization of small business incentive program.

Impact

The implications of SB2585 could significantly influence state laws governing the financial frameworks within which small businesses operate. By reauthorizing the small business incentive program and structuring a clear pathway for premium tax credit allocations, the bill is positioned to potentially elevate capital investments into these small enterprises, impacting employment rates and local economic stability favorably. This may also present a more robust financial groundwork in sectors previously underserved by capital flows.

Summary

Senate Bill 2585 seeks to reauthorize and amend the small business incentive program established in Texas, specifically focusing on the allocation of premium tax credits for certified investors. The bill introduces provisions to extend and clarify rules regarding the distribution and acceptance of tax credit claims under various programs intended to support investment in small businesses. This legislative move demonstrates a concerted effort to facilitate continued economic growth through incentivizing investment in low-income communities and emerging small enterprises.

Contention

While the bill has garnered support for its potential economic benefits, critics may raise concerns regarding the efficacy and oversight of the premium tax credit allocations. Detractors might argue that the program could benefit larger entities or those already well-established over the smaller, struggling businesses that it aims to support. Moreover, the long-term sustainability of such tax credit programs often comes into question, with debates likely to arise regarding the overall cost-benefit analysis of these incentives in the state budget.