Senate Bill 527 Summary

• Establishes a nonprofit corporation to manage a for-profit limited liability company that makes loans to life science companies for facilities, equipment, and regulatory costs in North Carolina.

• Creates an equity investment mechanism where designated investors purchase equity certificates with specified rates of return; the nonprofit corporation serves as the sole managing member of the lending entity.

• Authorizes tax credits equal to 100% of unpaid equity certificate returns when the lending entity certifies it cannot make scheduled payments, applicable against franchise tax, income tax, or gross premiums tax.

• Limits total outstanding equity certificates to $100 million and loans to any single life science company to $30 million; requires annual independent audits and public reporting of entity activities.

• Effective for taxable years beginning on or after January 1, 2011.