Mississippi SB 3008: Mississippi Small Business Investment Company Act; increase the amount of investment tax credits that may be allocated under.

Bill Text

SB3008 (As Introduced) - 2018 Regular Session 

MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Finance

By: Senator(s) Fillingane

Senate Bill 3008

AN ACT TO AMEND SECTION 57-115-5, MISSISSIPPI CODE OF 1972, 
TO INCREASE BY $50,000,000.00 THE AGGREGATE AMOUNT OF INVESTMENT TAX CREDITS 
THAT MAY BE ALLOCATED TO PARTICIPATING INVESTORS OF MISSISSIPPI SMALL BUSINESS 
INVESTMENT COMPANIES UNDER THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY 
ACT; TO PROVIDE THE TAXABLE YEARS IN WHICH A PARTICIPATING INVESTOR MAY CLAIM 
THE ADDITIONAL CREDITS SO ALLOCATED AGAINST HIS PREMIUM TAX LIABILITY; AND FOR 
RELATED PURPOSES.

���� BE IT ENACTED BY THE 
LEGISLATURE OF THE STATE OF MISSISSIPPI:

���� SECTION 1.� Section 
57-115-5, Mississippi Code of 1972, is amended as follows:

���� 57-115-5.� 
(1)� (a)� The MDA must provide a standardized format for applying for the 
Mississippi small business investment credit authorized under this chapter, and 
for certification as a Mississippi small business investment company.

��������� (b)� 
An applicant for certification as a primary Mississippi small business 
investment company must:

������������� (i)� 
File an application with the MDA which shall include a business plan detailing:

������������������ 1.� 
The approximate percentage of designated capital the applicant will invest in 
qualified businesses by the second, fourth and sixth anniversaries of its 
allocation date;

������������������ 2.� 
The industry segments listed by the North American Industrial Classification 
System code and percentage of designated capital in which the applicant will 
invest; and

������������������ 3.� 
The number of jobs that will be created or retained as a result of the 
applicant's investments once all designated capital has been invested.� A job 
shall be considered created or retained if the job pays one hundred twenty-five 
percent (125%) of the state average annual wage and is maintained for at least 
three (3) years.� The application shall project, at a minimum, that one (1) job 
shall be created or maintained for each One Hundred * * *and Fifty Thousand Dollars ($150,000.00) in 
credits awarded to the participating investors of the Mississippi small 
business investment company;

������������� (ii)� 
Pay a nonrefundable application fee of Seven Thousand Five Hundred Dollars 
($7,500.00) at the time of filing the application;

������������� (iii)� 
Submit as part of its application an audited balance sheet that contains an 
unqualified opinion of an independent certified public accountant issued not 
more than thirty-five (35) days before the application date that states that 
the applicant has an equity capitalization of Five Hundred Thousand Dollars 
($500,000.00) or more in the form of unencumbered cash, marketable securities 
or other liquid assets; and

������������� (iv)� 
Have at least two (2) principals or persons, at least one (1) of which is 
primarily located in Mississippi, employed or engaged to manage the funds who 
each have a minimum of five (5) years of money management experience in the 
venture capital or private equity or lending industry.

��������� (c)� 
An applicant for certification as a secondary Mississippi small business 
investment company must:

������������� (i)� 
File an application with the MDA which shall include a business plan detailing:

������������������ 1.� 
The approximate percentage of designate capital the applicant will invest in 
qualified businesses by the second, fourth and sixth anniversaries of its 
allocation date;

������������������ 2.� 
The industry segments listed by the North American Industrial Classification 
System code and percentage of designated capital in which the applicant will 
invest; and

������������������ 3.� 
The number of jobs that will be crested or retained as a result of the 
applicant's investments once all designated capital has been invested.� A job 
shall be considered created or retained if the job pays one hundred twenty-five 
percent (125%) of the state average annual wage and is maintained for at least 
three (3) years.� The application shall project, at a minimum, that one (1) job 
shall be created or maintained for each One Hundred * * *and Fifty Thousand Dollars ($150,000.00) in 
credits awarded to the participating investors of the Mississippi small 
business investment company;

������������� (ii)� 
Pay a nonrefundable application fee of Three Thousand Seven Hundred Fifty 
Dollars ($3,750.00) at the time of filing the application;

������������� (iii)� 
Submit as part of its application an audited balance sheet that contains an 
unqualified opinion of an independent certified public accountant issued not 
more than thirty-five (35) days before the application date that states that 
the applicant has an equity capitalization of One Hundred Fifty Thousand 
Dollars ($150,000.00) or more in the form of unencumbered cash, marketable 
securities or other liquid assets;

������������� (iv)� 
Demon