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REFERENCE TITLE: insurance tax credit; high-tech investments |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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HB 2295 |
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Introduced by Representative Tobin
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AN ACT
amending title 20, chapter 2, article 1, Arizona Revised Statutes, by adding section 20-224.08; amending Title 41, chapter 10, article 1, Arizona Revised Statutes, by adding section 41-1509; relating to insurance premium tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 20, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 20-224.08, to read:
20-224.08. Premium tax credit for high technology investments
A. A credit is allowed against the premium tax liability incurred by an insurer pursuant to section 20‑224, 20‑837, 20‑1010, 20‑1060 or 20‑1097.07 for twenty per cent of the amount of the investment made pursuant to section 41-1509 in a high technology business by the insurer during the tax year.
B. If the allowable amount of a credit under this section exceeds the insurer's state premium tax liability, the amount of the claim not used to offset the premium tax liability shall be refunded.
C. An insurer that claims a tax credit against state premium tax liability is not required to pay any additional retaliatory tax imposed pursuant to section 20‑230 as a result of claiming that tax credit.
Sec. 2. Title 41, chapter 10, article 1, Arizona Revised Statutes, is amended by adding section 41-1509, to read:
41-1509. Insurance premium tax credit for high technology investments; definition
A. The authority shall contract with a finance organization to identify high technology businesses that have their headquarters in this state and to facilitate investments in these businesses. The organization shall give priority to investments in businesses that have additional sources of revenue to match the investments made pursuant to this section.
B. The authority, with the cooperation of the department of insurance, shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.
C. An insurance provider that invests monies in a high technology business through the organization selected pursuant to subsection A of this section is eligible for insurance premium tax credits as provided in section 20-224.08.
D. The authority shall not approve credits exceeding:
1. Ten million dollars in calendar year 2014.
2. Twenty million dollars in calendar year 2015.
3. Twenty million dollars in calendar year 2016.
E. A single insurance provider shall not receive more than twenty per cent of the tax credits allocated in any year.
F. For the purposes of this section, "High technology business" means a business in the field of health, bioscience, semiconductors, electronics, information technology, energy, aerospace or defense.