HB 1366 Summary

• Permits the office of community and rural affairs to designate rural counties (population under 50,000) as Rural Entrepreneurship Area Development Incentives (READI) areas to support new business development.

• Distributes state adjusted gross income taxes paid by employees of new businesses and additional employees of existing businesses in designated areas to counties, capped at $250,000 per county per fiscal year and $5,000,000 total statewide.

• Requires counties to provide dollar-for-dollar local matching funds, sourced from county economic development income tax revenue (at least 50% if county has adopted it) or other public funds and private contributions.

• Establishes Rural Entrepreneurship Area Development Incentives (READI) funds in participating counties that may support incubators, accelerators, small business services, high-speed internet deployment, and entrepreneurial internships upon county appropriation and local economic development organization recommendation.

• Chapter expires January 1, 2025; state board of accounts audits READI and revolving loan funds every two years; upon area termination, remaining fund balances transfer to state general fund.