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2000 SESSION

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HB 402 Technology industry in tobacco-dependent localities.

Introduced by: William W. (Ted) Bennett, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Technology industry in tobacco-dependent localities. Creates tax credits and/or grants for capital, debt, cash, and stock investments in certain technology companies located in tobacco-dependent communities and for qualified research taking place in tobacco-dependent communities. The Technology Initiative in Tobacco-Dependent Localities Fund will be used to fund such tax credits and/or grants. Credits for capital investments are limited to 50 percent of the amount of the investment up to $500,000 per taxable year. Tax credits for debt, cash, and stock investments are limited to 50 percent of the amount of the investment up to $500,000 in aggregate per taxpayer. Tax credits for capital, debt, cash, and stock investments may first be taken in the taxable year in which the Tobacco Indemnification and Community Revitalization Commission finds that such investments were spent in a tobacco-dependent locality. Tax credits for qualified research taking place in tobacco-dependent localities is limited to 50 percent of the amount paid or incurred for such research and may be taken in the year in which such research and development activity occurred.

SUMMARY AS PASSED HOUSE:

Technology industry in tobacco-dependent localities. Creates two tax credits to help develop the technology industry in tobacco-dependent localities. The bill would create a tax credit for investing in technology and biotechnology businesses that are located in or that will be located in tobacco-dependent localities. The bill would also create a tax credit for research and development activity occurring in tobacco-dependent localities. The tax credit programs would last for 10 taxable years beginning on January 1, 2000, and the tobacco growing localities of the Commonwealth would be identified by the Tobacco Indemnification and Community Revitalization Commission. Both tax credit programs are capped at $500,000 per taxpayer and five million dollars total allowed by the Commonwealth. Under the research and development tax credit program, if the taxpayer has no tax liability for two consecutive years, the taxpayer may choose to have the credit amount be redeemed by the Tax Commissioner at 75 percent of the face value or be transferred to another taxpayer for 80 percent of the face value. The Innovative Technology Authority would administer the transferring of the tax credits. The moneys for redeeming the tax credit would come from the Tobacco Indemnification and Community Revitalization Fund if approved by the Tobacco Indemnification and Community Revitalization Commission. From the Tobacco Indemnification and Community Revitalization Fund, five million dollars would be deposited to the Technology Initiative in Tobacco-Dependent Localities Fund, which would be used for redeeming the credits if approved by the Tobacco Indemnification and Community Revitalization Commission. At the end of the 10-taxable-year period, any moneys left over in the Fund would revert to the Tobacco Indemnification and Community Revitalization Fund.

SUMMARY AS INTRODUCED:

Technology industry in tobacco-dependent localities. Creates two tax credits to help develop the technology industry in tobacco-dependent localities. The bill would create a tax credit for investing in technology and biotechnology businesses that are located in or that will be located in tobacco-dependent localities. The bill would also create a tax credit for research and development activity occurring in tobacco-dependent localities. The tax credit programs would last for 10 taxable years beginning on January 1, 2000, and the tobacco growing localities of the Commonwealth would be identified by the Tobacco Indemnification and Community Revitalization Commission. Both tax credit programs are capped at $500,000 per taxpayer and five million dollars total allowed by the Commonwealth. Under the research and development tax credit program, if the taxpayer has no tax liability for two consecutive years, the taxpayer may choose to have the credit amount be redeemed by the Tax Commissioner at 75 percent of the face value or be transferred to another taxpayer for 80 percent of the face value. The Innovative Technology Authority would administer the transferring of the tax credits. The moneys for redeeming the tax credit would come from the Tobacco Indemnification and Community Revitalization Fund. From the Tobacco Indemnification and Community Revitalization Fund, five million dollars would be deposited to the Technology Initiative in Tobacco-Dependent Localities Fund, which would be used for redeeming the credits. At the end of the 10-taxable-year period, any moneys left over in the Fund would revert to the Tobacco Indemnification and Community Revitalization Fund.