HB224 Alabama 2016 Session

This bill would create the Alabama Small Business Investment Company Act to attract capital to stimulate small business development by establishing tax credits for taxpayers that make eligible capital contributions to an eligible Alabama small business investment fund

This bill would require the Department of Commerce to accept applications and make determinations regarding eligibility of a business entity as an Alabama small business investment fund

This bill would specify the amount of tax credits that may be claimed for eligible capital contributions to an Alabama small business investment fund and would provide for the carrying forward of credits under certain conditions

This bill would also provide procedures for the revocation of tax credits for ineligible contributions and would provide procedures for the exit from the program and would require each small business investment fund to submit a report to the department detailing employment and financial information

To establish the Alabama Small Business Investment Company Act; to provide for tax credits for taxpayers that make eligible capital contributions to an eligible Alabama small business investment fund; to require the Department of Commerce to accept applications for eligibility as an Alabama small business investment fund and to make determinations of eligibility; to specify the amount of tax credits that may be claimed for eligible contributions; to provide for the carrying forward of credits under certain conditions; to provide procedures for the revocation of tax credits for ineligible contributions; to provide procedures for the exit from the program; to require each small business investment fund to report to the department certain employment and financial information; to require the department to provide certain information regarding whether businesses satisfy certain criteria relating to instate activity prior to investments; to provide for determination fees; and to provide rulemaking authority.