,i #aac? ,,congress #b;d ,session ,h4 ,r4 #dica ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,june #bj1 #bjad ,mr4 ,*abot 7= himself & ,mr4 ,murphy ( ,florida7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to all[ a cr$it aga9/ income tax = equity inve/m5ts by angel inve/ors4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,angel ,tax ,cr$it ,act4 #b4 ,angel inve/m5t tax cr$it 7a7 ,9 g5]al ,subp>t ,b ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #cj;,e4 ,angel inve/m5t tax cr$it 7a7 ,all[ance ( cr$it ,!re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> an am\nt equal to #be p]c5t ( ! qualifi$ equity inve/m5ts made by a qualifi$ inve/or dur+ ! taxable ye>4 7b7 ,limitation ,! am\nt ( ! cr$it all[$ "u subsection 7a7 = any taxpay] = any taxable ye> %all n exce$ #bej1jjj4 7c7 ,qualifi$ equity inve/m5t ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualifi$ equity inve/m5t means any equity inve/m5t 9 a qualify+ bus9ess entity if-- 7,a7 ! aggregate am\nt ( su* inve/m5ts made by ! taxpay] dur+ ! taxable ye> is #be1jjj or m1 7,b7 su* inve/m5t is acquir$ by ! taxpay] at its orig9al issue 7directly or ?r\gh an und]writ]7 solely 9 ex*ange = ca%1 & 7,c7 su* inve/m5t is designat$ = purposes ( ?is section by ! qualify+ bus9ess entity4 7#b7 ,equity inve/m5t ,! t]m equity inve/m5t means-- 7,a7 any =m ( equity1 includ+ a g5]al or limit$ p>tn]%ip int]e/1 common /ock1 pref]r$ /ock 7o!r ?an nonqualifi$ pref]r$ /ock z def9$ 9 section #cea7;g77#b771 ) or )\t vot+ rights1 )\t reg>d to s5iority position & :e!r or n conv]tible into common /ock or any =m ( subord9ate or conv]tible debt1 or bo?1 ) w>rants or o!r means ( equity conv]sion1 & 7,b7 any capital int]e/ 9 an entity :i* is a p>tn]%ip4 7#c7 ,r$emptions ,a rule simil> to ! rule ( section #abjb7;c77#c7 %all apply = purposes ( ?is subsection4 7d7 ,qualify+ bus9ess entity ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualify+ bus9ess entity means any dome/ic corporation or p>tn]%ip if su* corporation or p>tn]%ip-- 7,a7 has its headqu>t]s 9 ! ,unit$ ,/ates1 7,b7 has gross rev5ues = ! taxable ye> prec$+ ! date ( ! qualifi$ equity inve/m5t ( less ?an #a1jjj1jjj1 7,c7 employs less ?an #be full-"t equival5t employees z ( ! date ( su* inve/m5t1 7,d7 has be5 9 exi/5ce = less ?an #g ye>s z ( ! date ( ! qualifi$ equity inve/m5t1 7,e7 has m ?an #ej p]c5t ( ! employees p]=m+ sub/antially all ( _! s]vices 9 ! ,unit$ ,/ates z ( ! date ( su* inve/m5t1 7,f7 is engag$ 9 a high te*nology trade or bus9ess relat$ to-- 7i7 advanc$ mat]ials1 nanote*nology1 or precision manufactur+1 7ii7 a]ospace1 a]onautics1 or def5se1 7iii7 biote*nology or ph>maceuticals1 7iv7 electronics1 semiconductors1 s(tw>e1 or comput] te*nology1 7v7 en]gy1 environm5t1 or clean te*nologies1 7vi7 =e/ products or agriculture1 7vii7 in=mation te*nology1 communication te*nology1 digital m$ia1 or photonics1 7viii7 life sci5ces or m$ical sciences1 7ix7 m>9e te*nology or aquaculture1 7x7 transportation1 or 7xi7 any o!r high te*nology trade or bus9ess1 z det]m9$ by ! ,secret>y ( ! ,treasury1 & 7,g7 has equity inve/m5ts designat$ = purposes ( ?is p>agraph4 7#b7 ,designation ( equity inve/m5ts ,= purposes ( p>agraph 7#a77;,g71 an equity inve/m5t %all n be treat$ z designat$ if su* designation w\ld result 9 ! aggregate am\nt :i* may be tak5 into acc\nt "u ?is section ) respect to equity inve/m5ts 9 su* corporation or p>tn]%ip exce$s #b1jjj1jjj1 tak+ into acc\nt ! total am\nt ( all qualifi$ equity inve/m5ts made by all taxpay]s = ! taxable ye> & all prec$+ taxable ye>s4 7e7 ,qualifi$ inve/or ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualifi$ inve/or means an accr$it$ inve/or1 z def9$ by ! ,securities & ,ex*ange ,commission4 7#b7 ,exclusion ,! t]m qualifi$ inve/or does n include-- 7,a7 a p]son controll+ at lea/ #ej p]c5t ( ! qualify+ bus9ess entity1 7,b7 any v5ture capital fund 7)9 ! mean+ ( section #bjc7l7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#c7l7771 or 7,c7 any bank1 sav+s association1 loan association1 tru/ company1 insurance company1 or simil> entity ^: bus9ess activities include mak+ simil> inve/m5ts to inve/m5ts ( a v5ture capital fund 7z s def9$74 7f7 ,national limitation on am\nt ( inve/m5ts designat$ 7#a7 ,9 g5]al ,!re is an angel inve/m5t tax cr$it limitation ( #ejj1jjj1jjj = ea* ( cal5d> ye>s #bjac ?r\gh #bjag4 7#b7 ,allocation ( limitation ,! limitation "u p>agraph 7#a7 %all be allocat$ by ! ,secret>y among qualifi$ small bus9ess entities select$ by ! ,secret>y4 7#c7 ,c>ryov] ( unus$ limitation ,if ! angel inve/m5t tax cr$it limitation = any cal5d> ye> exce$s ! aggregate am\nt allocat$ "u p>agraph 7#b7 = su* ye>1 su* limitation = ! succe$+ cal5d> ye> %all be increas$ by ! am\nt ( su* excess4 ,no am\nt may be c>ri$ "u ! prec$+ s5t5ce to any cal5d> ye> aft] #bjbb4 7g7 ,application ) o!r cr$its 7#a7 ,bus9ess cr$it treat$ z "p ( g5]al bus9ess cr$it ,except z provid$ 9 p>agraph 7#b71 ! cr$it :i* w\ld be all[$ "u subsection 7a7 = any taxable ye> 7det]m9$ )\t reg>d to ?is subsection7 %all be treat$ z a cr$it li/$ 9 section #ch7;b7 = su* taxable ye> 7& n all[$ "u subsection 7a774 7#b7 ,p]sonal cr$it 7,a7 ,9 g5]al ,9 ! case ( an individual :o elects ! application ( ?is p>agraph1 = purposes ( ?is title1 ! cr$it all[$ "u subsection 7a7 = any taxable ye> 7det]m9$ aft] application ( p>agraph 7#a77 %all be treat$ z a cr$it all[able "u subp>t ,a = su* taxable ye>4 7,b7 ,c>ry=w>d ( unus$ cr$it ,if ! cr$it all[able "u subsection 7a7 by reason ( subp>agraph 7,a7 exce$s ! limitation impos$ by section #bf7;a7 = su* taxable ye>1 r$uc$ by ! sum ( ! cr$its all[able "u subp>t ,a 7o!r ?an ?is section7 = su* taxable ye>1 su* excess %all be c>ri$ to ea* ( ! succe$+ #bj taxable ye>s to ! ext5t t su* unus$ cr$it may n be tak5 into acc\nt "u subsection 7a7 by reason ( subp>agraph 7,a7 = a prior taxable ye> because ( su* limitation4 7h7 ,special rules 7#a7 ,relat$ p>ties ,= purposes ( ?is section-- 7,a7 ,9 g5]al ,all relat$ p]sons %all be treat$ z #a p]son4 7,b7 ,relat$ p]sons ,a p]son %all be treat$ z relat$ to ano!r p]son if-- 7i7 ! relation%ip betwe5 su* p]sons w\ld result 9 ! disall[ance ( losses "u section #bfg or #gjg7;b71 or 7ii7 = purposes ( subsection 7e71 ! p]son is an individual :o is ! sp\se ( a l9eal desc5dant ( an individual describ$ 9 subsection 7e77#b77;,a74 7#b7 ,basis ,= purposes ( ?is subtitle1 ! basis ( any inve/m5t ) respect to :i* a cr$it is all[able "u ?is section %all be r$uc$ by ! am\nt ( su* cr$it s all[$4 ,?is subsection %all n apply = purposes ( sections #abjb1 #acig;,b1 & #adjj;,b4 7#c7 ,recapture ,! ,secret>y %all1 by regulations1 provide = recaptur+ ! b5efit ( any cr$it all[able "u subsection 7a7 ) respect to any qualifi$ equity inve/m5t :i* is held by ! taxpay] less ?an #c ye>s1 except t no b5efit %all be recaptur$ 9 ! case (-- 7,a7 transf] ( su* inve/m5t by reason ( ! dea? ( ! taxpay]1 7,b7 transf] betwe5 sp\ses1 7,c7 transf] incid5t to ! divorce 7z def9$ 9 section #ajda7 ( su* taxpay]1 or 7,d7 a transaction to :i* section #cha7;a7 applies 7relat+ to c]ta9 acquisitions ( ! assets ( "o corporation by ano!r corporation74 7i7 ,regulations ,! ,secret>y %all prescribe su* regulations z may be appropriate to c>ry out ?is section1 includ+ regulations-- 7#a7 :i* prev5t ! abuse ( ! purposes ( ?is section1 7#b7 :i* impose appropriate report+ requirem5ts1 & 7#c7 :i* apply ! provisions ( ?is section to newly =m$ entities4 4 7b7 ,cr$it made "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 p>agraph 7#ce71 by /rik+ plus2 7#b7 9 p>agraph 7#cf71 by /rik+ ! p]iod at ! end & ins]t+ 1 plus2 & 7#c7 by add+ at ! end ! foll[+ new p>agraph3 7#cg7 ! portion ( ! angel inve/m5t tax cr$it to :i* section #cj;,e7g77#a7 applies4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,section #ajaf7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( p>agraph 7#cf71 by /rik+ ! p]iod at ! end ( p>agraph 7#cg7 & ins]t+ 1 &1 & by ins]t+ aft] p>agraph 7#cg7 ! foll[+ new p>agraph3 7#ch7 to ! ext5t provid$ 9 section #cj;,e7h77#b74 4 7#b7 ,! table ( sections = subp>t ,b ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #cj;,e4 ,angel inve/m5t tax cr$it4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to inve/m5ts made aft] ,decemb] #ca1 #bjac1 9 taxable ye>s end+ aft] su* date4