AB 90

Under current law, generally, the Department of Commerce (Commerce) may

certify a person to receive income and franchise tax credits based on the person's

expenditures to acquire, improve, or construct real property or acquire tangible

personal property in this state related to the person's business. Under this bill,

Commerce may award a grant to a person who wishes to secure financing to make

expenditures that would qualify for such tax credits. A person is eligible to receive

a grant if the expenditures are made for a business located in this state that has fewer

than 25 employees in this state or less than $5,000,000 in gross receipts. No person

may receive a grant unless the person has submitted business and financing plans

to a commercial lending institution and submitted copies of the plans to Commerce.

Before awarding a grant, Commerce must verify that the lender has approved the

person's plans and will underwrite a loan for expenditures, contingent on the person

receiving a grant. Under the bill, a person who receives a grant to secure financing

for making an expenditure that would qualify for a tax credit may not claim a credit

for that expenditure.