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Senate amends and passes small-business jobs bill using insurance-premium-tax increment for incentives
Summary
The first substitute to SB233 (Utah Small Business Jobs Act) was amended on the floor to clarify a $70,000 fee-cap placement; sponsors described a targeted incentive using Internal Revenue Code section 45(d) mechanics funded by insurance-premium-tax increment to encourage investment in high-poverty areas.
Senators considered a technical amendment to the first substitute of SB233, the Utah Small Business Jobs Act, and adopted Amendment #1 to clarify where a $70,000 fee cap applies. Senator Ballentine moved the amendment and described it as a correction ensuring the $70,000 cap applies to the specific subsection created by the bill rather than to the entire chapter.
Ballentine explained the bill relies on Internal Revenue Code section 45(d) mechanics to create an incentive for investment in qualifying low-income areas and that the state incentive would be funded by the increment — the growth above the current baseline — in the insurance-premium tax. "Under the underline Bill, we had a $70,000 fee cap for those who are developing this type of an investment strategy," Ballentine said, explaining the amendment returns the cap to the correct portion of the bill.
Senators asked clarifying questions about how the cap works and about the targeted investor pool, and Ballentine explained insurance companies (which pay the premium tax) are the anticipated investors because of regulatory reserve requirements.
The floor accepted the amendment and later the first substitute passed third reading; the clerk recorded passage and the bill will be sent to the House for further consideration.
