HB 113 establishes an angel investor tax credit program administered by the Kentucky Economic Development Finance Authority (KEDFA) for certain investments in small businesses. About half of the states have a similar program. The program provides tax credits to angel investors who invest in newly-formed, technology, science, or knowledge-based businesses.
The total amount of tax credit that may be awarded by the authority in each calendar year is $4 million for all qualified investors and $200,000 for an individual qualified investor. The credit equals 40 percent of the amount of the investment if the principal place of business of the qualified small business is outside a rural area or 50 percent of the amount of the investment if the principal place of business of the qualified small business is in a rural area.
HB113
12RS
The hyperlink to a bill draft that precedes a summary contains the most recent version (Introduced/GA/Enacted) of the bill. If the session has ended, the hyperlink contains the latest version of the bill at the time of sine die adjournment. Note that the summary pertains to the bill as introduced, which is often different from the most recent version.
AN ACT relating to the angel investor tax credit. Create new sections of Subchapter 20 of KRS Chapter 154 to establish the angel investor tax credit program for certain investments in small businesses; define terms; state act title and purposes; list requirements for small businesses and investors to qualify for participation; require the Kentucky Economic Development Finance Authority to establish the application process; cap the total amount of angel investor and Kentucky Investment Fund Act tax credits available in all years at $40,000,000; require KEDFA to maintain a Web site listing all businesses and investors certified and all credits awarded; require small businesses to report annually and allow for tax credit recapture in certain circumstances; amend KRS 152.20-255 to provide that the total amount of tax credits available in the Kentucky Investment Fund Act program and the angel investor program is $40,000,000 in all years; create a new section of KRS Chapter 141 to establish the credit; amend KRS 141.0205 to provide the ordering of the credit.
HB 113 - AMENDMENTS
(Prefiled by the sponsor(s).) Jan 3-introduced in House; to Economic Development (H) Jan 31-posted in committee Feb 9-reported favorably, 1st reading, to Calendar with Committee Substitute Feb 10-2nd reading, to Rules Feb 14-recommitted to Appropriations & Revenue (H) Feb 24-posted in committee
