Bill Text: AZ HB2432 | 2014 | Fifty-first Legislature 2nd Regular | Introduced
Bill Title: Tax credit; insurance; investment fund
Spectrum: Moderate Partisan Bill (Republican 11-3)
Status: (Introduced - Dead) 2014-01-30 - Referred to House WM Committee [HB2432 Detail]
Download: Arizona-2014-HB2432-Introduced.html
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REFERENCE TITLE: tax credit; insurance; investment fund |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HB 2432 |
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Introduced by Representatives Thorpe, Contreras, Dial, Livingston, Orr, Stevens: Borrelli, Brophy McGee, Cardenas, Gowan, Pratt, Saldate, Shope, Senator Shooter
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AN ACT
amending title 20, chapter 2, article 1, Arizona Revised Statutes, by adding section 20-224.08; amending Title 41, chapter 10, article 1, Arizona Revised Statutes, by adding section 41-1509; relating to insurance premium tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 20, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 20-224.08, to read:
20-224.08. Premium tax credit for technology investments
A. A credit is allowed against the premium tax liability incurred by an insurer pursuant to section 20‑224, 20‑837, 20‑1010, 20‑1060 or 20‑1097.07 for the amount of the investment made pursuant to section 41-1509 in the technology business investment fund by the insurer during the tax year.
B. If the allowable amount of a credit under this section exceeds the insurer's state premium tax liability, the amount of the claim not used to offset the premium tax liability may be carried forward as a tax credit against subsequent years' state premium tax liability for the period, not to exceed fifteen taxable years.
C. An insurer that claims a tax credit against state premium tax liability is not required to pay any additional retaliatory tax imposed pursuant to section 20‑230 as a result of claiming that tax credit.
Sec. 2. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1509, to read:
41-1509. Insurance premium tax credit for technology investments; funds; definition
A. The authority shall contract with a professional finance management organization to identify technology businesses that have their headquarters in this state and to make investments in these businesses from the technology business investment fund established by subsection B of this section. The professional finance management organization shall give priority to investments in businesses that have sources of investments in addition to the investments made pursuant to this section.
B. The technology business investment fund is established and shall be administered by the authority. The fund consists of monies provided by insurance companies for investment pursuant to subsection A of this section.
C. The authority, with the cooperation of the department of insurance, shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.
D. An insurance provider that invests monies in the technology business investment fund is eligible for insurance premium tax credits as provided in section 20-224.08.
E. The authority may not approve credits exceeding:
1. Ten million dollars in fiscal year 2015‑2016.
2. Twenty million dollars in fiscal year 2016‑2017.
3. Twenty million dollars in fiscal year 2017‑2018.
F. A single insurance provider may not receive more than twenty per cent of the tax credits allocated in any year or more than ten per cent of the total credits authorized.
G. The authority shall:
1. Cause an annual audit to be made of the professional finance management organization and the technology business investment fund and provide the results of the audit to the governor, the speaker of the house of representatives and the president of the senate.
2. Annually assess the success and effects of the technology business investments by examining factors such as internal rates of return, total return and length of the investments, jobs created, average salaries, increases in exports from this state, goods and services purchased from companies in this state, state and local tax revenues and collaborative investments in universities in this state.
H. The professional finance management organization shall deposit returns on investments in technology businesses in a technology business returns fund, to be administered by the authority. The authority shall transfer the first fifty million dollars in returns or the amount of the total credits provided insurance companies, whichever is less, to the state treasurer for deposit in the state general fund.
I. For the purposes of this section, "technology business" means a business in the field of health, bioscience, semiconductors, electronics, information technology, energy, aerospace or defense.
