HB368 Alabama 2015 Session

Summary

Primary Sponsor

Marcel Black

Democrat

Session

Regular Session 2015

Title

Tax credits, certified capital company, application procedure, Sec. 40-14B-23 added; Secs. 40-14B-1, 40-14B-3, 40-14B-12, 40-14B-17, 40-14B-21 am'd.

Summary

HB368 creates the Alabama Small Business Investment Act to replace certified capital companies with Alabama small business investment companies and adds a new third tax credit allocation with reporting and accountability requirements.

What This Bill Does

It establishes a new framework for premium tax credits tied to investments in Alabama small business investment companies, including new application, certification, and decertification rules. It adds a third allocation of tax credits with vesting limits and diversity goals, and requires the Department of Commerce to post allocation and investment information online and to prepare regular program reports. It also strengthens recapture and forfeiture provisions if a company is decertified and updates definitions and terminology across the law.

Who It Affects

• Investors who contribute certified capital and claim premium tax credits would be affected by the new third allocation, vesting limits (up to 12.5% per year), and potential recapture/forfeiture if the related investment company is decertified.
• Alabama small business investment companies, the technology businesses they invest in, and the Department of Commerce, which will face new certification/decertification rules, community outreach requirements, data posting, and reporting obligations.

Key Provisions

• Renames the program from 'certified capital company' to 'Alabama small business investment company' and defines 'community outreach'.
• Creates the Alabama Small Business Investment Act of 2015 and sets application procedures, including a $7,500 nonrefundable fee, audited financials, minimum $500,000 equity capitalization, and experienced principals.
• Adds decertification and recapture/forfeiture rules for premium tax credits if a certified company loses continued certification, with defined timelines (e.g., recapture rules before/after the third and fifth anniversaries).
• Establishes a third tax credit allocation equal to one-half of the pre-2015 pool, with vesting up to 12.5% per year until credits reach 100% of the certified capital, and directs diversity requirements in rules.
• Authorizes a portfolio and investment reporting regime: the Department of Commerce must post data online and provide biennial and semiannual reports on investments, jobs, and certifications/decertifications, including community outreach activities.
• Defines key terms (affiliate, certified-capital Alabama small business investment company, qualified technology business, etc.) and clarifies who qualifies for the program.
• Makes codification changes to replace references of 'capital investment company' with 'Alabama small business investment company' and sets the act’s effective date and implementation timeline.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alabama Development Office