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Bills · 2021-2022 Regular Session

SB 859

Died at session end Official bill text Atom feed

Relating to: a tax credit for investments in a community development financial institution. (FE)

Financial institution Franchise — Taxation Income tax — Credit

  1. Introduced, stopped here
  2. Passes Senate, not reached
  3. Passes Assembly, not reached
  4. Governor signs, not reached
  5. Law, not reached

Unfamiliar terms? Glossary

What this bill does

Plain-language analysis by the nonpartisan Legislative Reference Bureau

Under this bill, a person who makes a qualified investment in a registered

community development financial institution (CDFI) may receive a credit against

state income and franchise taxes for taxable years beginning after December 31,

2021, and before January 1, 2024, and against license fees paid by insurers. The bill

defines a CDFI as an entity that is organized under the laws of this state, uses

qualified investments for projects that are based in this state, and has been certified

by the Community Development Financial Institutions Fund established under

federal law as meeting certain eligibility requirements. The bill defines a “qualified

investment" as a loan or deposit that has a value of at least $10,000, pays no interest

to the person making the loan or deposit, and is made for a minimum of 60 months.

The CDFI retains complete control of the loan or deposit for the duration of the

investment period.

A person may claim 10 percent of the person's qualified investment, if the

investment is at least $10,000 but not more than $150,000, or 12 percent of the

person's qualified investment, if the investment is more than $150,000 but not more

than $500,000. If the person withdraws the qualified investment from the CDFI

before the end of the investment period and does not reinvest the qualified

investment in another CDFI, the person must repay a portion of the credit amounts

that the person received by adding the portion to the person's tax or fee liability in

a subsequent year. However, the portion that the person must repay depends on

when the person withdraws the investment during the investment period. The

portion that the person must repay decreases the longer the person holds the

investment during the investment period.

What it would cost

Fiscal estimates filed by state agencies, as official PDFs

Sponsors

Introduced by: Agard (D) , Bewley (D) , Carpenter (D) , L. Taylor (D) , Larson (D) , Smith (D)

20 cosponsors

Allen (R) , Andraca (D) , B. Meyers (D) , Baldeh (D) , Conley (D) , Considine (D) , Emerson (D) , Hebl (D) , Hong (D) , Ohnstad (D) , Pope (D) , Shankland (D) , Shelton (D) , Sinicki (D) , Snodgrass (D) , Spreitzer (D) , Stubbs (D) , Subeck (D) , VanderMeer (R) , Vruwink (D)

Full history

  1. Jan 13, 2022 · Senate

    Introduced by Senators Smith, Agard, Bewley, Carpenter, Larson and L. Taylor; cosponsored by Representatives Shankland, VanderMeer, Andraca, Allen, Baldeh, Conley, Considine, Emerson, Hebl, Hong, B. Meyers, Ohnstad, Pope, Shelton, Sinicki, Snodgrass, Spreitzer, Stubbs, Subeck and Vruwink

  2. Jan 13, 2022 · Senate

    Read first time and referred to Committee on Financial Institutions and Revenue

  3. Jan 31, 2022 · Senate

    Fiscal estimate received

  4. Mar 15, 2022 · Senate

    Failed to pass pursuant to Senate Joint Resolution 1