AR HB1235

Allows convertible financing structures (convertible debt, convertible equity, convertible notes) to qualify for equity investment incentive tax credits if converted to equity within 5 years of consummation.

Requires applicants using convertible financing structures to provide clear statements about timing and conditions for conversion to equity in their applications.

Extends the program eligibility period from calendar years 2007-2019 to 2007-2028, and extends the credit expiration date from December 31, 2028 to December 31, 2037.

Prioritizes allocation of tax credits to direct equity purchases over convertible financing structure investments when total applications exceed the annual cap.

Limits original investors to selling their tax credits only one time, in whole or in part, with remaining balance used within the allowed timeframe.