Bill Text: AZ HB2646 | 2013 | Fifty-first Legislature 1st Regular | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Investment fund; insurance tax credit

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2013-03-20 - Referred to Senate RULES Committee [HB2646 Detail]

Download: Arizona-2013-HB2646-Introduced.html

 

 

 

REFERENCE TITLE: investment fund; insurance tax credit

 

 

 

 

State of Arizona

House of Representatives

Fifty-first Legislature

First Regular Session

2013

 

 

HB 2646

 

Introduced by

Representative Tobin

 

 

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:

START_STATUTE20-224.08.  Premium tax credit for high 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 high 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 year's 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. END_STATUTE

Sec. 2.  Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1509, to read:

START_STATUTE41-1509.  Insurance premium tax credit for high technology investments; funds; definition

A.  The authority shall contract with a professional finance management organization to identify high technology businesses that have their headquarters in this state and to make investments in these businesses from the high technology business investment fund established pursuant to 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 high 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 high technology business investment fund is eligible for insurance premium tax credits as provided in section 20-224.08.

E.  The authority shall not approve credits exceeding:

1.  Ten million dollars in fiscal year 2014‑2015.

2.  Twenty million dollars in fiscal year 2015‑2016.

3.  Twenty million dollars in fiscal year 2016‑2017.

F.  A single insurance provider shall not receive more than twenty per cent of the tax credits allocated in any year or more than ten percent of the total credits authorized.

G.  The authority shall:

1.  Cause annual audits to be made of the professional finance management organization and the high technology business investment fund and provide the results of the audits 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 high 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 high technology businesses in the high technology business returns fund, to be administered by the authority.  The first fifty million dollars in returns or the amount of the total credits provided insurance companies, whichever is less, shall be transferred to the state treasurer for deposit in the state general fund.

I.  After the transfer to the state general fund pursuant to subsection H of this section, monies in the high technology business returns fund shall be distributed as follows:

1.  Seventy-five per cent to the insurance company investors and twenty-five per cent to this state to reduce the amount of the insurance premium tax assessed pursuant to sections 20‑224, 20‑837, 20‑1010, 20‑1060 and 20‑1097.07.

2.  If the full amount of the insurance companies' investment has been reimbursed pursuant to paragraph 1 of this subsection, fifty per cent to the insurance company investors and fifty per cent to this state to reduce the amount of the insurance premium tax assessed pursuant to sections 20‑224, 20‑837, 20‑1010, 20‑1060 and 20‑1097.07.

3.  If the full amount of the insurance companies' investment has been reimbursed pursuant to paragraph 1 of this subsection and the total amount of the insurance premium tax assessed pursuant to sections 20‑224, 20‑837, 20‑1010, 20‑1060 and 20‑1097.07 has been paid for a tax year, fifty per cent to the insurance company investors and fifty per cent to the authority for deposit in the high technology business investment fund.

J.  Insurance premium taxes shall be reduced pursuant to subsection I of this section by reimbursing every insurance provider its proportionate share of the high technology business returns fund monies based on the percentage of the total amount of the insurance premium tax assessed pursuant to sections 20‑224, 20‑837, 20‑1010, 20‑1060 and 20‑1097.07 that was paid by each insurance provider.

K.  For the purposes of this section, "High technology business" means a business in the field of health, bioscience, semiconductors, electronics, information technology, energy, aerospace or defense. END_STATUTE

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