SCS/SB 169 - This act provides an income tax credit in an amount equal to the applicable percentage of the adjusted purchase price paid to the issuer of a qualified equity investment. The applicable percentage is zero percent for each of the first two credit allowance dates and seven percent for the third credit allowance date and eight percent for the next four credit allowance dates. The tax credit is non-refundable and non-transferrable, but tax credits earned by "pass - through entities" may be allocated to the partners, members, or shareholders of the entity for their direct use. To the extent that the tax credits issued exceed a taxpayer's liability, the remaining tax credits may be carried forward until fully claimed. The tax credit has an annual aggregate cap of fifteen million dollars. The act contains provisions allowing the Department of Economic Development to recapture tax credits issued under the act in certain situations.
This act contains a sunset provision. The provisions of the act will automatically sunset six years from the effective date of the act unless re-authorized, however the sunset date shall not preclude a taxpayer who makes a qualified equity investment prior to the sunset date from claiming credits issued under the act.