HB224 Summary

• Establishes the Alabama Small Business Investment Company Act to provide nonrefundable tax credits to insurance companies that make capital contributions to approved Alabama small business investment funds.

• Allows the Department of Commerce to approve eligible investment funds and award up to $12.5 million in tax credits per year for eight years, with a maximum total authorization of $100 million.

• Permits taxpayers to claim up to 12.5 percent of their vested credit annually beginning in the third full calendar year after their capital contribution, with unused credits carried forward indefinitely.

• Requires investment funds to invest at least 50 percent of their capital in Alabama businesses within four years and limits any single investment to 15 percent of the fund's capital, with provisions for tax credit revocation if requirements are not met.

• Mandates annual reporting by investment funds on job creation, investments made, and financial performance, with compliance fees of $10,000 annually and $100,000 annually after the tenth year.