146th GENERAL ASSEMBLY

FISCAL NOTE

Bill: HOUSE BILL NO. 386

sponsor: Representative Q. Johnson

DESCRIPTION: AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO STATE ECONOMIC DEVELOPMENT.

ASSUMPTIONS:

1. This bill is effective January 1, 2013.

2. This bill creates the First State Angel Investment Tax Credit Program and the First State Angel Investment Council. This bill allows the Delaware Economic Development Office through the First State Angel Investment Council to establish criteria for businesses to receive investment from individuals obtaining tax credit certification under the program.

3. This bill limits the amount of tax credit certifications the Council can issue up to a maximum of $2 million. The Council cannot issue certifications after December 31, 2014.

4. The Department of Finance is not able to determine which businesses would participate in this program or how many investors would participate in this program.

5. This fiscal note assumes no tax credits are issued or used in FY 2013 in order to get the program up and running. This fiscal note also assumes that the maximum credits are issued and distributed evenly among FY 2014 and FY 2015. The actual distribution of tax credits will depend on how many businesses and investors qualify to participate in this program.

Revenue Loss:

Fiscal Year 2013 $ 0

Fiscal Year 2014 ($1,000,000)*

Fiscal Year 2015 ($1,000,000)*

*This represents the maximum impact. The actual impact could be much lower depending on the actual issuance of tax credits by the First Angel Investment Council.

Office of Controller General (Amounts are shown in whole dollars)

June 19, 2012

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