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 Tax Policy
Reported without amendment
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that incorporates certain additional restrictions and requirements designed to more narrowly target the tax breaks at certain kinds of businesses, and make it harder for non-targeted firms to make themselves eligible by changing their business structure.
The substitute passed by voice vote
Amendment offered
by
To cap the annual compensation to officers or owners of firms taking advantage of the tax break at $135,000.
The amendment passed by voice vote
Passed in the House 103 to 4 (details)
Referred to the Committee on Economic Development, Small Business, and Regulatory Reform
Reported without amendment
With the recommendation that the amendments be adopted and that the bill then pass.
Amendment offered
To incorporate technical wording changes that do not affect the substance of the bill as previously described.
The amendment 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, 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.
Passed in the House 104 to 2 (details)
To concur with the Senate-passed version of the bill.
