Introduced
by
To exempt for five years a "qualified start-up business" from any single business tax (SBT) liability in a year in which it does not make a profit. (Note: The SBT is a tax on the value added by a firm in producing a product, which means that a firm may owe SBT tax even though it makes no profit.) A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, and is not publicly traded. This does not necessarily apply only to new firms, and the five year exemption is not necessarily the firm's first five years of operation.
Referred to the Committee on Finance
Referred to the Committee on Economic Development, Small Business, and Regulatory Reform
Reported without amendment
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that somewhat narrows the definition of qualified start up business to only include firms that did not have net income for two consecutive tax years, and eliminates the carry-forward provision for the portion of the proposed SBT credit which exceeds the firm's tax liability for a single year. It also includes provisions intended to prevent companies not qualified for the credit to qualify by affiliating with an entity that is qualified.
The substitute passed by voice vote
Substitute offered
by
To replace the previous version of the bill with one containing technical changes that do not affect its substance as previously described.
The substitute passed by voice vote
Passed in the Senate 37 to 0 (details)
To exempt for five years a "qualified start-up business" from any single business tax (SBT) liability in a year in which it does not make a profit. (Note: The SBT is a tax on the value added by a firm in producing a product, which means that a firm may owe SBT tax even though it makes no profit.) A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, is not publicly traded, and did not have net income for two consecutive tax years. This does not necessarily apply only to new firms, and the proposed five year exemption is not necessarily the firm's first five years of operation.
Referred to the Committee on Commerce
Referred to the Committee on Tax Policy
