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H.R.122 - Creating Jobs From Innovative Small Businesses Act of 2013
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for equity investments in high technology small business concerns.
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SECTION 1. SHORT TITLE.
SEC. 2. CREDIT FOR INVESTMENTS IN SMALL TECHNOLOGY INNOVATION COMPANIES.
‘SEC. 45S. HIGH TECHNOLOGY INVESTMENT TAX CREDIT.
‘(a) Allowance of Credit- For purposes of section 38, the high technology investment tax credit determined under this section for the taxable year is an amount equal to 20 percent of the amount paid by the taxpayer during such year to acquire a qualified equity investment in a qualified high technology small business concern.CommentsClose CommentsPermalink
‘(A) IN GENERAL- For purposes of paragraph (1), all related persons shall be treated as 1 person, and the dollar amount in paragraph (1)(A) shall be allocated among such persons under regulations prescribed by the Secretary.CommentsClose CommentsPermalink
‘(B) RELATED PERSONS- A person shall be treated as related to another person if the relationship between such persons would result in the disallowance of losses under section 267 or 707(b).CommentsClose CommentsPermalink
‘(2) QUALIFIED HIGH TECHNOLOGY SMALL BUSINESS CONCERN- The term ‘qualified high technology small business concern’ means, with respect to any taxable year, any small business concern (as defined in section 3 of the Small Business Act) if--CommentsClose CommentsPermalink
‘(2) ALLOCATION OF LIMITATION- The limitation under paragraph (1) shall be allocated by the Secretary among qualified high technology small business concerns selected by the Secretary.CommentsClose CommentsPermalink
‘(3) CARRYOVER OF UNUSED LIMITATION- If the high technology investment tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph (2) for such year, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2023.CommentsClose CommentsPermalink
‘(e) Certain Taxpayers Not Eligible- No credit shall be determined under this section for any equity investment in any qualified high technology small business concern made by any individual who, at the time of the investment, is--CommentsClose CommentsPermalink
‘(f) Basis Reduction- The basis of any qualified equity investment shall be reduced by the amount of any credit determined under this section with respect to such investment. This subsection shall not apply for purposes of sections 1202, 1400B, and 1400F.CommentsClose CommentsPermalink
(b) Credit Made Part of General Business Credit- Subsection (b) of section 38 of such Code (relating to current year business credit) is amended by striking ‘plus’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink