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Montana Legislature Passes $60 Million VC Act
Venture capital investments in Montana may have become a little more attractive last Friday as the Montana House of Representatives passed the Montana Equity Capital Investment Act, moving the legislation to Gov. Brian Schweitzer for his consideration and expected signature.
To maximize the rate of return for investors, Senate Bill 133 calls for the creation of a $60 million Montana Equity Fund, which will be used as a provisional financial safety net for investors and distributed as tax credits should investments go badly. Adopting what is commonly referred to as the Oklahoma model, the act also establishes the Montana Capital Investment Board to oversee the fund's activities.
The goal of S.B. 133 is to attract local and out-of-state venture investment funds by providing a guaranteed monetary return to investors through tax incentives. The program is expected to mobilize capital in the state, creating a permanent source of funds that will be available for academic, technological and innovative start-up companies as well as expanding businesses.
More information on the Montana Equity Capital Investment Act is available at: http://data.opi.state.mt.us/bills/2005/billhtml/SB0133.htm