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IN HB1501
Bill
Status
1/18/2017
Primary Sponsor
Ben Smaltz
Click for details
AI Summary
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Office of Community and Rural Affairs may designate rural counties (population under 50,000) as Rural Entrepreneurship Area Development Incentives (READI) areas to support new business development.
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State distributes adjusted gross income taxes paid by employees of new businesses and additional employees of existing businesses, plus taxes paid by new businesses themselves, to designated counties for economic development purposes.
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Individual county distributions capped at $250,000 per state fiscal year; total statewide distribution capped at $5,000,000 per fiscal year, with proportional reductions if total exceeds cap.
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Counties must commit matching local funds (up to $250,000 annually) from local income tax revenue for economic development, public funds, or private contributions to qualify for state distributions.
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READI funds may be used for revolving loans to new businesses, venture capital funds, incubator/accelerator development, broadband deployment, and entrepreneurship programs after recommendation by local economic development organizations; program expires January 1, 2028.
Legislative Description
Rural entrepreneurship area incentives. Permits the office of community and rural affairs (office) to designate an applicant rural county as a rural entrepreneurship area development incentives area (READI area). Provides for the distribution of adjusted gross income taxes paid annually by employees working in an area for a new business or paid annually by additional employees in an existing business and by the new business itself to the rural county for the development of new business opportunities in the rural county, including transfers to local or regional venture capital funds. Limits the amount that may be distributed to a particular
Last Action
First reading: referred to Committee on Ways and Means
1/18/2017