HB 1462 Summary

• Removes the $12.5 million annual cap on venture capital investment tax credits, allowing certified credits to be applied against tax liability regardless of total credits claimed in a calendar year.

• Permits the Office of Community and Rural Affairs to designate rural counties (population under 50,000) as rural entrepreneurship area development incentives areas to support new business creation.

• Distributes adjusted gross income taxes annually from employees and businesses operating in designated rural areas to county READI funds, capped at $500,000 per county per year, for venture capital funds, incubators, accelerators, and business support services.

• Allows READI funds to be transferred to regional or local venture capital funds for small business lending and development purposes.

• Establishes that rural entrepreneurship areas expire January 1, 2024, and prohibits new tax incentive zones from being established in counties with active areas without legislative approval.