Bill > S1470

This bill establishes the Massachusetts New Markets Tax Credit program, allowing businesses to receive tax credits for making qualified equity investments in economically distressed communities. A "qualified equity investment" is defined as an investment in a "qualified community development entity" (an organization that has received federal allocation for New Markets Tax Credits and serves Massachusetts) or a "long-term debt security" issued by such an entity. These investments must be used to fund "qualified active low-income community businesses," which are businesses operating in low-income areas. The tax credits are calculated based on an "applicable percentage" of the investment amount and are applied against an entity's "state premium tax liability" (taxes paid by insurance companies). The bill outlines specific requirements for qualified community development entities to apply for and receive certification for these investments, including demonstrating prior investment experience and paying a refundable performance fee. It also details conditions under which tax credits can be recaptured, such as if the funds are not properly invested in qualifying businesses or if federal tax credits are recaptured. The program aims to encourage capital growth in underserved areas by providing financial incentives for investment.