Income taxes: credit: small business investment.

The Personal Income Tax Law and the Bank and Corporation Tax Law authorize various credits against the taxes imposed by those laws. This bill, under both laws, would allow a credit for specified taxable years to qualified investors and qualified funds, as defined, in an amount equal to 25% of a qualified investment, as defined, in a qualified small business, as defined, but not to exceed, in the aggregate amount under both of those laws, $15,000,000 per year. The bill would authorize the Governor's Office of Business and Economic Development to impose specified charges related to the administration of these credits and would deposit those amounts in the Small Business Investment Tax Credit Administration Account, an account created by this bill, and would, upon appropriation by the Legislature, use those moneys for costs associated with the administration of these credits. This bill would require the Governor's Office of Business and Economic Development to report annually by March 15 to the Legislature specified information regarding the tax credit. The bill would also require the Department of Finance to contract with a consultant to evaluate the effects of the tax credit on the California economy, as specified, and would appropriate $100,000 from the General Fund to the Department of Finance for this purpose. This bill would take effect immediately as a tax levy.