Bill
H 4134
SC extends the High Growth Small Business Job Creation Act to 2035, renaming it the Angel Investor Tax Credit Act, to keep angel investments and job creation incentives.
Status snapshot: Referred to Committee on Finance; introduced 2025-05-12. (Note: the provided materials include two different texts under the same docket number — one is a Massachusetts local act establishing a Cambridge Employment and Job Training Trust, and the other is a South Carolina amendment to the High Growth Small Business Job Creation Act. This summary covers both items and highlights the primary subject identified in the Bill Information: the extension of the High Growth Small Business Job Creation Act / Angel Investor Tax Credit Act.)
Purpose and intent
- Extend and reauthorize the state’s “High Growth Small Business Job Creation Act” for an additional ten years and clarify/rename the statute to reflect its angel investor tax credit purpose.
- Continue incentives intended to encourage private angel investment in early-stage, high‑growth businesses and thereby stimulate job creation.
Key provisions and changes
- Repeal/expiration date extended: the statutory provisions in Chapter 44, Title 11 (Act 80 of 2013, as amended) are repealed on December 31, 2035 (previously set to expire December 31, 2025).
- Rename statute: the chapter is cited/retitled as the “High Growth Small Business Job Creation Act of 2013 — Angel Investor Tax Credit Act.”
- Definitions updated/clarified (selected):
- “Angel investor” — an SEC-accredited investor who is either a resident (or taxable nonresident) or a pass‑through entity formed for investment purposes with no business operations, under $5 million in committed capital, and not capitalized via private-placement institutional funds; venture capital/hedge funds excluded.
- “Qualified business” — must be registered, located and headquartered in-state, organized no more than 5 years before investment, have ≤25 employees at registration, and prior gross income ≤ $2 million; primarily engaged in specified activities (manufacturing, software, R&D, IT services, etc.) and not “substantially engaged” (defined as >25% of revenue) in certain excluded activities (retail, real estate, professional services, extraction, certain financial activities, entertainment/fitness admissions, etc.).
- “Qualified investment” — cash investment by an angel investor for equity (common/preferred) or purchase of subordinated debt; transactions that involve solicitation fees/commissions do not qualify.
- Registration and oversight:
- Qualified businesses must register with the designated department (text alternates between “Department ” and Secretary of State functions); registration certification lasts 12 months and may be renewed.
- Department must transmit certifications/revocations to the Secretary of State for publication.
- Annual reporting requirement (by Jan. 31) to House Ways & Means, Senate Finance, and Governor with detailed information on registered businesses (county, headquarters, capital raised, jobs created, average wages, etc.).
- Credits and carryforwards: existing carryforward credits remain allowed until the ten‑year carryforward period is complete (consistent with prior language).
Who is affected
- Angel investors (individuals and qualifying pass‑through entities) seeking state tax credits for investments in qualifying South Carolina startups.
- Early-stage South Carolina businesses that meet the “qualified business” criteria — potentially expanding access to private capital and encouraging job creation.
- State revenue and administrative agencies (Department of Revenue / Secretary of State) responsible for certification, publication, and reporting.
- State fiscal picture: extension preserves a potential stream of tax credits claimed against state income tax, which affects general fund revenues over the extended period.
Procedural / timeline notes
- The extension would shift the statutory repeal from 2025 to 2035.
- Legislative actions in the provided record include committee reports (Ways & Means favorable with amendment), readings, amendments, and substitution with H4774 (Notation: record shows third reading 2025-11-20 and substitution/amendment activity).
Purpose and intent
- Establish a municipal trust (City of Cambridge Employment and Job Training Trust) to support creation and maintenance of employment opportunities for Cambridge residents via employment and job training services.
Key provisions
- Creates a Trust governed by a Board of Trustees (5–9 members) with the Cambridge City Manager (or designee) as ex officio member; non‑ex officio trustees appointed by the City Manager and designated public agents.
- Grants broad fiduciary and transactional powers: accept gifts/grants (including payments tied to city zoning/ordinances), invest, make grants and loans, acquire/transfer property, hire advisors, settle claims, etc.
- Funding and budget mechanics:
- Monies paid to the Trust (public or private, including linkage fees under city ordinances) are Trust property and need not undergo further appropriation; funds remain Trust property across fiscal years.
- City may, by ordinance, require an “employment and job training linkage fee” for certain projects; ordinance sets fee amount, adjustment method, and applicable project types.
- Legal/administrative status:
- Trust designated a public employer for purposes of tort claims (Chapter 258) and a municipal agency for procurement law (Chapter 30B) with a stated exemption for agreements between the Trust and city entities.
- Trust exempt from property and income taxes under Chapters 59 and 62.
- Annual independent audit required; annual report to City Manager required.
- Effective upon passage.
Who is affected
- Cambridge residents seeking job training and employment services.
- Developers/projects subject to any adopted linkage fee ordinance.
- Cambridge municipal administration (oversight, appointment, reporting).
Procedural note
- Filed as a municipal petition and indicates local approval (mayor and city council).
If you want, I can:
- Produce a side-by-side comparison of the South Carolina extension provisions against the prior statute (Act 80 of 2013 / Act 138 of 2020) to show what changes are new; or
- Produce a concise one‑page fact sheet tailored to investors, start‑ups, or municipal stakeholders.
Compiled from official sources — confirm details with the bill’s official record.
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