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Legislators in GA, KY Push Capital Measures in Upcoming Sessions

November 30, 2011

Lawmakers and technology industry leaders in Georgia and Kentucky are hoping to establish capital programs during the 2012 legislative sessions in an effort to support new business creation and remain competitive with states already offering lucrative incentives.

A legislative subcommittee in Georgia recently proposed a $180 million public-private venture capital fund to invest in technology, life sciences, advanced manufacturing, logistics, aerospace, and other high-growth sectors, reports The Atlanta Business Chronicle. The fund would be financed through a combination of tax credits and private capital to attract high-growth jobs and retain existing companies. Under the proposal, a state agency or authority would administer the fund, but a third-party fiduciary would select the venture capital and private equity funds that participate in the program. The state would receive 80 percent of the profits when portfolio companies are sold or go public, according to the article. Additional proposals and recommendations on how the state can best support science and technology jobs are expected from the Science and Technology Strategic Initiative Joint Study Commission established by the legislature this year. So far, the commission has held three meetings with business, financial and education leaders. Georgia's 2012 legislative session convenes Jan. 9.

In Kentucky, State Rep. Arnold Simpson (D-Covington) intends to reintroduce a bill that failed to pass this session establishing an angel investment tax credit for individuals, reports The Cincinnati Enquirer. While the state currently offers an angel investment tax credit to investment funds of up to 40 percent, it does not apply to individuals. Several business organizations are pushing to change the law to incentivize individuals to invest in startup companies. A measure to establish the angel investor tax credit program was introduced this year as HB 448. Kentucky lawmakers will return on Jan. 3 for the 2012 legislation session.

Georgia, Kentuckystate budget, capital, public equity funds, tax credits, angel capital