Senate advances changes to Utah Venture Capital Enhancement Act to make tax credit refundable

Sen. Jenkins, floor sponsor, said the Senate advanced House Bill 179, a set of technical and policy changes to the Utah Venture Capital Enhancement Act, to a third reading after floor debate.

The bill would exempt from GRAMA disclosure “specific proprietary information on individual portfolios of companies,” Jenkins said, arguing that public disclosure of trade secrets would deter investment. Jenkins also said the bill changes the program’s investor tax credit from nonrefundable to refundable so that an investor can “turn [the credit] into cash” if the Utah Fund of Funds does not return promised gains.

“Care must be taken to not open trade secrets to the general public,” Jenkins said, describing the GRAMA exemption as necessary to preserve investor confidence. He told colleagues the change to a refundable credit “just simplifies it… and made it a lot simpler.”

Supporters noted the tax commission had recommended the changes and that states which mandate portfolio disclosure can lose venture funds. The discussion included brief technical questions but no recorded amendments on the floor. After debate, the Senate recorded a roll-call reading result: House Bill 179 received 26 yes votes, 0 nays, with 3 absent and was ordered read for a third time.

The bill sponsor indicated more materials (charts and handouts) were distributed to illustrate the fiscal and operational impact; senators asked staff for those materials where needed. The bill will return for third reading with the refinements described on the floor.

The Senate did not vote on final passage during this session; the next procedural step is the scheduled third reading.