,i #aacth ,,congress #ast ,session ,h4 ,r4 #adae ,,in ,,the ,,house ,,of ,,representatives ,april #i1 #bjac ,mr4 ,van ,hollen 7for himself1 ,mr4 ,ruppersberger1 ,ms4 ,schwartz1 ,ms4 ,mc,collum1 ,mr4 ,garamendi1 and ,mr4 ,polis7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow a credit for equity investments in high technology and biotechnology small business concerns developing innovative technologies that stimulate private sector job growth4 #a4 ,short title ,this ,act may be cited as the ,innovative ,technologies ,investment ,incentive ,act of #bjac4 #b4 ,credit for investments in high technology and biotechnology business concerns developing innovative technologies 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding after section #cj;,d the following new section3 #cj;,e4 ,investments in high technology and biotechnology business concerns developing innovative technologies 7a7 ,allowance of credit ,there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #be percent of the qualified equity investments made by the taxpayer during the taxable year4 7b7 ,limitations 7#a7 ,national limitation 7,a7 ,in general ,there is a national innovative technology investment credit limitation of #ejj1jjj1jjj4 7,b7 ,allocation of limitation and issuance of certificate ,under regulations1 the ,administrator of the ,small ,business ,administration shall make allocations of the national innovative technology investment credit limitation among qualified equity investments and shall issue an innovative technology investment credit certificate for each such allocation4 7,c7 ,per business investment limitation ,the amount of the national innovative technology investment credit limitation allocated to a qualified technology small business concern shall not exceed #ej percent of the total amount awarded to such concern under the ,small ,business ,innovation ,research 7,,sbir7 program under section #i of the ,small ,business ,act4 7,d7 ,certificate required for credit eligibility ,the amount allowed as a credit under subsection 7a7 with respect to any qualified equity investment shall not exceed the amount of the national innovative technology investment credit limitation allocated to such investment and shown on the innovative technology investment credit certificate pursuant to subparagraph 7,e77ii74 7,e7 ,innovative technology investment credit certificate ,for purposes of this subsection1 an innovative technology investment credit certificate is a certificate which-- 7i7 certifies the amount of the qualified equity investment1 7ii7 relates such investment to an award under the ,small ,business ,innovation ,research 7,,sbir7 program under section #i of the ,small ,business ,act which qualifies for purposes of this section1 and 7iii7 contains such other information as the ,administrator1 in consultation with the ,secretary1 determines to be necessary or appropriate to carry out this section4 ,the amount of any award under the ,small ,business ,innovation ,research program1 once related under subparagraph 7,b7 with a qualified equity investment1 may not thereafter be available for purposes of this section4 7#b7 ,limitation based on percentage ownership ,the amount of the credit under subsection 7a7 allowed to the taxpayer with respect to a qualified equity investment in a qualified technology small business concern shall be zero if1 after such investment1 the taxpayer owns 7within the meaning of section #cah7 #ej percent or more of-- 7,a7 in the case that such concern is a corporation1 the outstanding stock of the corporation 7either by vote or value71 and 7,b7 in the case that such concern is not a corporation1 the capital and profits interests of such concern4 7c7 ,qualified equity investment ,for purposes of this section-- 7#a7 ,in general ,the term qualified equity investment means any equity investment in a qualified technology small business concern made during the investment period if such investment is acquired by the taxpayer at its original issue 7directly or through an underwriter7 solely in exchange for cash4 7#b7 ,equity investment ,the term equity investment means-- 7,a7 any stock 7other than nonqualified preferred stock1 as defined in section #cea7;g77#b77 in an entity which is a corporation1 and 7,b7 any capital or profits interest in an entity which is not a corporation4 7#c7 ,qualified technology small business concern ,the term qualified technology small business concern means1 with respect to any taxable year1 any small business concern 7as defined in section #c of the ,small ,business ,act7 if such concern-- 7,a7 is engaged in a high technology or biotechnology trade or business1 and 7,b7 employs an average of fewer than #ejj employees on business days during such year4 7#d7 ,investment period ,the term investment period means the period-- 7,a7 beginning on the date the qualified technology small business concern first receives funds pursuant to a funding agreement under the ,small ,business ,innovation ,research 7,,sbir7 program under section #i of the ,small ,business ,act1 and 7,b7 ending on the last day of the #ah-month period beginning on the date on which such funding agreement ceases to be in effect4 7d7 ,application with other credits 7#a7 ,business credit treated as part of general business credit ,except as provided in paragraph 7#b71 the credit which would be allowed under subsection 7a7 for any taxable year 7determined without regard to this subsection7 shall be treated as a credit listed in section #ch7;b7 for such taxable year 7and not allowed under subsection 7a774 7#b7 ,personal credit 7,a7 ,in general ,in the case of an individual who elects the application of this paragraph1 for purposes of this title1 the credit allowed under subsection 7a7 for any taxable year 7determined after application of paragraph 7#a77 shall be treated as a credit allowable under subpart ,a for such taxable year4 7,b7 ,carryforward of unused credit ,if the credit allowable under subsection 7a7 by reason of subparagraph 7,a7 exceeds the limitation imposed by section #bf7;a7 for such taxable year1 reduced by the sum of the credits allowable under subpart ,a 7other than this section7 for such taxable year1 such excess shall be carried to each of the succeeding #bj taxable years to the extent that such unused credit may not be taken into account under subsection 7a7 by reason of subparagraph 7,a7 for a prior taxable year because of such limitation4 7e7 ,special rules 7#a7 ,related parties ,for purposes of this section-- 7,a7 ,in general ,all related persons shall be treated as #a person4 7,b7 ,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 #bfg or #gjg7;b74 7#b7 ,basis ,for purposes of this subtitle1 the basis of any investment with respect to which a credit is allowable under this section shall be reduced by the amount of such credit so allowed4 7#c7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit of any credit allowable under subsection 7a7 with respect to any qualified equity investment which is held by the taxpayer less than #c years1 except that no benefit shall be recaptured in the case of-- 7,a7 transfer of such investment by reason of the death of the taxpayer1 7,b7 transfer between spouses1 or 7,c7 transfer incident to the divorce 7as defined in section #ajda7 of such taxpayer4 7f7 ,regulations ,the ,secretary shall prescribe such regulations as may be appropriate to carry out this section1 including regulations-- 7#a7 which prevent the abuse of the purposes of this section1 and 7#b7 which impose appropriate reporting requirements4 4 7b7 ,credit made part of general business credit ,subsection 7b7 of section #ch of such ,code 7relating to current year business credit7 is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the portion of the qualified equity investment credit to which section #cj;,e7d77#a7 applies4 4 7c7 ,conforming amendments 7#a7 ,section #ajaf7;a7 of such ,code is amended by striking and at the end of paragraph 7#cf71 by striking the period at the end of paragraph 7#cg7 and inserting 1 and1 and by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 to the extent provided in section #cj;,e7d77#b74 4 7#b7 ,section #be7;e77#a77;,c7 of such ,code is amended by inserting #cj;,e1 after #be;,d14 7#c7 ,section #adjj;,c7d7 of such ,code is amended by inserting and #cj;,e after #be;,d4 7d7 ,clerical amendment ,the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #cj;,d the following new item3 ,sec4 #cj;,e4 ,investments in high technology and biotechnology business concerns developing innovative technologies4 4 7e7 ,effective date ,the amendments made by this section shall apply to investments made after ,december #ca1 #bjab1 in taxable years ending after such date4