Bill Text: CT HB05583 | 2017 | General Assembly | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: An Act Expanding Investment Eligibility Under The Angel Investor Tax Credit Program.

Spectrum: Committee Bill

Status: (Passed) 2017-06-30 - Signed by the Governor [HB05583 Detail]

Download: Connecticut-2017-HB05583-Comm_Sub.html

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General Assembly		Committee Bill No. 5583
January Session, 2017		LCO No. 3827
		*03827HB05583CE_*
Referred to Committee on COMMERCE
Introduced by:
(CE)

AN ACT EXPANDING INVESTMENT ELIGIBILITY UNDER THE ANGEL INVESTOR TAX CREDIT PROGRAM.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (a) of section 12-704d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017, and applicable to taxable years commencing on or after January 1, 2017):

(a) As used in this section:

(1) "Angel investor" means an accredited investor, as defined by the Securities and Exchange Commission, or network of accredited investors who review new or proposed businesses for potential investment and who may seek active involvement, such as consulting and mentoring, in a Connecticut business, but "angel investor" does not include (A) a person controlling fifty per cent or more of the Connecticut business invested in by the angel investor, (B) a venture capital company, or (C) any bank, bank and trust company, insurance company, trust company, national bank, savings association or building and loan association for activities that are a part of its normal course of business;

(2) "Cash investment" means the contribution of cash, at a risk of loss, to a qualified Connecticut business in exchange for qualified securities;

(3) "Connecticut business" means any business with its principal place of business in Connecticut; [that is engaged in bioscience, advanced materials, photonics, information technology, clean technology or any other emerging technology as determined by the Commissioner of Economic and Community Development;] and

[(4) "Bioscience" means manufacturing pharmaceuticals, medicines, medical equipment or medical devices and analytical laboratory instruments, operating medical or diagnostic testing laboratories, or conducting pure research and development in life sciences;

(5) "Advanced materials" means developing, formulating or manufacturing advanced alloys, coatings, lubricants, refrigerants, surfactants, emulsifiers or substrates;

(6) "Photonics" means generation, emission, transmission, modulation, signal processing, switching, amplification, detection and sensing of light from ultraviolet to infrared and the manufacture, research or development of opto-electronic devices, including, but not limited to, lasers, masers, fiber optic devices, quantum devices, holographic devices and related technologies;

(7) "Information technology" means software publishing, motion picture and video production, teleproduction and postproduction services, telecommunications, data processing, hosting and related services, custom computer programming services, computer system design, computer facilities management services, other computer related services and computer training;

(8) "Clean technology" means the production, manufacture, design, research or development of clean energy, green buildings, smart grid, high-efficiency transportation vehicles and alternative fuels, environmental products, environmental remediation and pollution prevention; and]

[(9)] (4) "Qualified securities" means any form of equity, including a general or limited partnership interest, common stock, preferred stock, with or without voting rights, without regard to seniority position that must be convertible into common stock.

This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2017, and applicable to taxable years commencing on or after January 1, 2017	12-704d(a)

Statement of Purpose:

To support the growth of small businesses in Connecticut by allowing investments in additional types of businesses to qualify for an angel investor tax credit.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]

Co-Sponsors:

REP. ARESIMOWICZ, 30th Dist.; REP. RITTER M., 1st Dist. REP. MUSHINSKY, 85th Dist.; REP. GODFREY, 110th Dist. REP. RYAN, 139th Dist.; REP. ORANGE, 48th Dist. REP. URBAN, 43rd Dist.; REP. BERGER, 73rd Dist. REP. GENTILE, 104th Dist.; REP. HENNESSY, 127th Dist. REP. PERONE, 137th Dist.; REP. ABERCROMBIE, 83rd Dist. REP. GENGA, 10th Dist.; REP. MORIN, 28th Dist. REP. MORRIS, 140th Dist.; REP. TONG, 147th Dist. REP. ROJAS, 9th Dist.; REP. JOHNSON, 49th Dist. REP. SANTIAGO, 130th Dist.; REP. BARAM, 15th Dist. REP. ROVERO, 51st Dist.; REP. HADDAD, 54th Dist. REP. LEMAR, 96th Dist.; REP. ROSE, 118th Dist. REP. ALBIS, 99th Dist.; REP. STALLWORTH, 126th Dist. REP. ARCE, 4th Dist.; REP. VARGAS, 6th Dist. REP. HAMPTON, 16th Dist.; REP. RILEY, 46th Dist. REP. SANTIAGO, 84th Dist.; REP. ARCONTI, 109th Dist. REP. SCANLON, 98th Dist.; REP. MCCARTHY VAHEY, 133rd Dist. REP. SIMMONS, 144th Dist.; REP. ADAMS, 146th Dist. REP. STAFSTROM, 129th Dist.; REP. GRESKO, 121st Dist. REP. REYES, 75th Dist.; REP. SLAP, 19th Dist. REP. CONLEY, 40th Dist.; REP. BOYD, 50th Dist. REP. ZIOGAS, 79th Dist.; REP. ELLIOTT, 88th Dist. REP. LINEHAN, 103rd Dist.; REP. ROSARIO, 128th Dist. REP. MCGEE, 5th Dist.

H.B. 5583