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SENATE DOCKET, NO. 1757        FILED ON: 1/18/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1444

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Bruce E. Tarr

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
              Court assembled:

              The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to creating an angel investment tax credit.

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PETITION OF:

 

Name:

District/Address:

Bruce E. Tarr

First Essex and Middlesex

Michael R. Knapik

Second Hampden and Hampshire

Barry R. Finegold

Second Essex and Middlesex

Richard J. Ross

Norfolk, Bristol and Middlesex

Robert L. Hedlund

Plymouth and Norfolk


SENATE DOCKET, NO. 1757        FILED ON: 1/18/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1444

By Mr. Tarr, a petition (accompanied by bill, Senate, No. 1444) of Bruce E. Tarr, Michael R. Knapik, Barry R. Finegold, Richard J. Ross and others for legislation to create an angel investment tax credit.  Revenue. 

 

The Commonwealth of Massachusetts

 

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In the Year Two Thousand Thirteen

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An Act relative to creating an angel investment tax credit.

 

              Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

              SECTION 1. Section 6 of chapter 62 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after subsection (q) the following new subsection:-

              (r) (1) As used in this subsection, the following words shall have the following meanings:-

              “Angel investor”, a taxpayer who provides financing for the development, refinement, and commercialization of a product or process and other working capital needs.

              “Small business”, a business entity physically located in Massachusetts and employing fewer than 100 workers; provided, not less than 51 per cent of the workers are residents of Massachusetts.

              “Start-up expenses”, the expenses for the administration and operation of a business prior to the time the business becomes operational.

              (2) An angel investor shall be allowed a credit against the taxes imposed by this chapter equal to 15 per cent of the monetary amount provided to a small business for the start-up expenses associated with the small business; provided, the credit shall be equal to 25 per cent if the small business is physically located in an economic target area pursuant to section 3D of chapter 23A. 

              (3) Any amount of the credit that exceeds the tax due for a taxable year may be carried forward by the taxpayer to any of the 3 subsequent taxable years.

              (4) The total cumulative amount of credits issued in a calendar year pursuant to this subsection shall not exceed an annual cap equal to $10,000,000; provided, the cap will be equal to $5,000,000 beginning January 1, 2015.

              (A) Funding for the credit shall be from any remaining amount of consolidated net surplus after complying with clause (a) of section 5C of chapter 29. 

              (5) The credit authorized in this subsection shall expire on December 31, 2019.

              (6) The commissioner shall promulgate regulations necessary for the administration of this subsection.

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