Roadrunner Capitol Reports
Legislation Detail

H 80 ANGEL INVESTMENT CREDIT REFUNDABLE

Rep Linda Serrato

Actions: HPREF [2] HCEDC/HTRC-HCEDC [4] DNP-CS/DP-HTRC API.

Scheduled: Not Scheduled

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Summary:
 House Bill 80 (HB 80) doubles the amount of the Angel Investment Credit (credit) and makes it refundable. Qualifying businesses for the credit are expanded. The aggregate cap of the credits is increased.  
Legislation Overview:
 House Bill 80 (HB 80) proposes changes to the Angel Investment Credit (credit). The credit increases from 25% to 50% of each qualified investment. The limit of $62,500 remains the same. HB 80 increases the annual aggregate total of all credits from $2 million to $10 million. Additionally, the bill eliminates the carry forward of the credit and makes any amount that exceeds tax liability refundable to the taxpayer. A business qualifies for a credit if their gross receipts do not exceed $10 million (an increase from $5 million) among other provisions. HB 80 applies to investments made beginning in 2022. 
Status Quo:
 If HB 80 is not passed, the credit remains 25% of each investment and has an aggregate limit of $2 million. Credit that exceeds tax liability is not refundable but may be carried forward up to five years. Qualified businesses may only have up to $5 million in gross receipts.  
Committee Substitute:
 01/31/2022 House Commerce & Economic Development Committee substitute (HCEDCcs)

HCEDC introduced a substitute bill (HB 80 HCEDCcs) that included the provisions of the original bill but changes the credit from 25% to 40% except for investments in majority women- or persons of color-owned businesses which is increased to 50%. The Taxation and Revenue Department (TRD) will establish procedures for determining if businesses are owned by underrepresented groups. TRD may rely on federal or state certifications and information to make the determination.