WeVote
Log In

Bill

Bill

SF 270

A bill for an act relating to tax credits awarded by the economic development authority for specific capital contributions made to certified rural business growth funds for investment in qualified businesses.

2025-2026 Regular Session Introduced by Mike Klimesh

SF 270 boosts rural economies by offering tax credits for investments in certified growth funds, promoting job creation and access to capital for local businesses.

Subcommittee: Dawson, Dotzler, and Klimesh.
#businessassistance #businessentities #depositories #donations #economicdevelopmentauthority #incometaxes #investments #laborandemployment #reports #ruralareas #smallbusinesses #taxcredits
0
WeVote Research Nonpartisan
Bill Summary · SF 270

Summary of SF 270: Tax Credits for Rural Business Growth Funds

Bill Number: SF 270
Introduced On: February 11, 2025
Current Status: Subcommittee: Dawson, Dotzler, and Klimesh
Classification: Bill
Subject Areas: Business Assistance, Economic Development, Tax Credits, Rural Areas, Small Businesses

Purpose and Intent

The primary aim of SF 270 is to enhance economic development in rural areas by providing tax credits for capital contributions made to certified rural business growth funds. These funds are intended to support investments in qualified businesses, thereby fostering job creation and retention in rural communities.

Key Provisions

  1. Certification of Growth Funds:

    • The Economic Development Authority (EDA) will certify applicants as rural business growth funds if they meet specific criteria.
    • Upon approval, the EDA will notify the applicant, detailing the eligible investment authority and the required number of jobs to be created or retained.

  2. Capital Contribution Requirements:

    • Within 45 days of certification, the growth fund must collect credit-eligible capital contributions from investors.
    • At least 10% of the growth fund's eligible investment authority must come from equity investments contributed by affiliates, including employees and principals.

  3. Documentation Submission:

    • The growth fund is required to submit documentation to the EDA within 65 days of certification, proving that the necessary capital contributions and equity investments have been collected.
    • This documentation must also identify all affiliates of the investor eligible for tax credits.

  4. Consequences of Non-Compliance:

    • If the growth fund fails to meet the collection and documentation requirements, all eligible investment authority and credit-eligible capital contributions will lapse.
    • Lapsed contributions will not count towards the maximum limits and may be reallocated by the EDA.

  5. Agreement with the Authority:

    • Upon successful compliance, the growth fund must enter into an agreement with the EDA that outlines the terms of the investment and tax credit allocation.

Impact

  • Beneficiaries: The bill is expected to benefit rural businesses by increasing access to capital, which can lead to job creation and economic growth in underserved areas.
  • Investors: Individuals and entities making capital contributions to certified growth funds may receive tax credits, incentivizing investment in rural economies.
  • Economic Development: By facilitating investments in qualified businesses, the bill aims to stimulate economic activity and improve employment rates in rural regions.

Procedural Timeline

  • February 11, 2025: Bill introduced and referred to the Ways and Means Committee.
  • February 18, 2025: Bill reviewed by the subcommittee consisting of Dawson, Dotzler, and Klimesh.

This summary provides an overview of SF 270, highlighting its purpose, key provisions, and potential impact on rural economic development and investment.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.