Relating to participation in certain programs by, and insurer premium tax credits for investments in, certified capital companies.
Impact
The proposed legislation would lead to a significant repeal of Chapter 228 of the Insurance Code as of December 31, 2016, thereby potentially reshaping how premium tax credits for certified capital investments are administered. Importantly, the bill stipulates that any credits earned before this date will still be governed by the prior regulations, ensuring that investors can retain credits accrued before the changes take place. This provision aims at easing the transition for those already invested under the previous framework and maintaining stability for ongoing investments in the certified capital sector.
Summary
House Bill 3030 aims to delineate the participation of certified capital companies in state-sponsored economic development programs and outlines the regulations surrounding insurer premium tax credits for investments in these companies. The bill explicitly prohibits certified capital companies and their affiliates from participating in any other state economic development initiatives until either all certified capital has been invested or until a specified date, December 31, 2016. This framework is intended to streamline economic development efforts and allocate resources to certified capital companies more effectively, encouraging investment in the local economy.
Contention
One point of contention arising from the bill revolves around the restrictions it places on certified capital companies in regard to participation in other economic programs. Critics might argue that this limitation could curtail opportunities for these companies and hinder their ability to seek additional investments or support from state programs. Additionally, the timing of the repeal of Chapter 228 raises questions about the future availability and distribution of tax credits, which could impact investor confidence and the strategic planning of certified capital companies.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.