HB 2590 Summary

• Establishes a rural growth fund program administered by the Arizona Commerce Authority allowing qualified investment companies to receive approval for tax-advantaged investments in rural Arizona businesses.

• Creates tax credits for insurance premium tax and income tax purposes for investors making credit-eligible capital contributions to approved rural growth funds, claimable at 25% per year over years 3-6 following the fund's closing date with up to 10-year carryforward.

• Limits total program capacity to $50 million in investment authority and $30 million in credit-eligible capital contributions, with individual fund limits of $20 million in investment authority.

• Requires rural growth funds to invest 100% of their investment authority within 24 months in rural business concerns with fewer than 150 employees and under $10 million in net income, with at least 20% invested in businesses with fewer than 50 employees.

• Allows tax credit certificate holders to transfer credits to a single affiliate and establishes compliance requirements and revocation procedures enforced by the Arizona Commerce Authority with reporting to the legislature by August 31 annually.