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House approves expansion of state venture-capital tax-credit program
Summary
The House approved first-substitute Senate Bill 11, expanding Utah's 'fund of funds' by raising authorized tax credits and clarifying governance and proprietary-data treatment; the measure passed 69–2 and is returned to the Senate.
The Utah House on Feb. 13 approved first-substitute Senate Bill 11, the Utah Venture Capital Enhancement Act amendments, increasing the maximum tax-credit authorization for the state fund of funds and tightening legal language on financing and data privacy.
Representative Clark, sponsor of the motion to uncircle the bill, told colleagues the legislation has three goals: expand tax-credit capacity from the current $100 million to $300 million, add clarifying language to improve the program’s financing tools, and adjust public-records treatment so proprietary investor information in the corporation managing the fund remains protected while aggregated board information remains public. "We are modifying GRAMA ... so that proprietary information would remain proprietary," Clark said on the floor.
During floor questions, Representative Sumption asked how the mechanics and state exposure operate if investments underperform. Clark responded that the expansion authorizes tax credits that act as a backstop for a bank line of credit used by the fund and that, based on other states’ experience, "there's never been a recorded default." He said the state’s structure aims to protect principal and extend investment duration to maximize returns.
After debate, the House voted to approve the uncircled substitute and returned the measure to the Senate for further consideration. The Clerk announced the result: 69 yes votes, 2 no votes.
What happens next: The measure will return to the Senate for further consideration and signature procedures. Sponsors characterized the change as an effort to expand a successful, state-backed investment tool to support Utah companies and job growth.
Votes at a glance SB11 (first substitute): Passed in House 69–2.
