1.1.................... moves to amend H.F. No. 2856 as follows:
1.2Page 2, delete line 12
1.3Page 2, line 13, delete "(k)" and insert "(j)"
1.4Page 5, delete section 3
1.5Page 6, delete section 4 and insert:

1.6    "Sec. 3. Minnesota Statutes 2012, section 116J.8737, subdivision 5, is amended to read:
1.7    Subd. 5. Credit allowed. (a) A qualified investor or qualified fund is eligible for
1.8a credit equal to 25 percent of the qualified investment in a qualified small business.
1.9Investments made by a pass-through entity qualify for a credit only if the entity is a
1.10qualified fund. The commissioner must not allocate more than $11,000,000 in credits to
1.11qualified investors or qualified funds for taxable years beginning after December 31, 2009,
1.12and before January 1, 2011, and must not allocate more than $12,000,000 in credits per
1.13year for taxable years beginning after December 31, 2010, and before January 1, 2015
1.14 $15,000,000 in credits to qualified investors or qualified funds for taxable years beginning
1.15after December 31, 2014, and before January 1, 2017, of which $3,000,000 per year is
1.16reserved for credits for qualifying investments in qualified greater Minnesota businesses
1.17and minority- or women-owned qualified small businesses in Minnesota, but credit
1.18applications for qualifying investments in qualified greater Minnesota businesses and
1.19minority- or women-owned qualified small businesses are not limited to allocations from
1.20the reserved amount. Any portion of a taxable year's credits that is reserved for qualifying
1.21investments in qualified greater Minnesota businesses and minority- or women-owned
1.22qualified small businesses in Minnesota that is not allocated by September 30th of the
1.23taxable year is available for allocation to other credit applications beginning on October
1.241st of the taxable year. Any portion of a taxable year's credits that is not allocated by the
1.25commissioner does not cancel and may be carried forward to subsequent taxable years
1.26until all credits have been allocated.
2.1(b) The commissioner may not allocate more than a total maximum amount in credits
2.2for a taxable year to a qualified investor for the investor's cumulative qualified investments
2.3as an individual qualified investor and as an investor in a qualified fund; for married
2.4couples filing joint returns the maximum is $250,000, and for all other filers the maximum
2.5is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
2.6over all taxable years for qualified investments in any one qualified small business.
2.7(c) The commissioner may not allocate a credit to a qualified investor either as
2.8an individual qualified investor or as an investor in a qualified fund if the investor
2.9receives more than 50 percent of the investor's gross annual income from , at the time the
2.10investment is proposed, the investor, individually or in combination with one or more
2.11members of the investor's family, owns, controls, or holds the power to vote 20 percent or
2.12more of the outstanding securities of the qualified small business in which the qualified
2.13investment is proposed. A member of the family of an individual disqualified by this
2.14paragraph is not eligible for a credit under this section. For a married couple filing a joint
2.15return, the limitations in this paragraph apply collectively to the investor and spouse. For
2.16purposes of determining the ownership interest of an investor under this paragraph, the
2.17rules under section 267(c) and 267(e) of the Internal Revenue Code apply.
2.18(d) Applications for tax credits for 2010 must be made available on the department's
2.19Web site by September 1, 2010, and the department must begin accepting applications
2.20by September 1, 2010. Applications for subsequent years must be made available by
2.21November 1 of the preceding year.
2.22(e) Qualified investors and qualified funds must apply to the commissioner for tax
2.23credits. Tax credits must be allocated to qualified investors or qualified funds in the order
2.24that the tax credit request applications are filed with the department. The commissioner
2.25must approve or reject tax credit request applications within 15 days of receiving the
2.26application. The investment specified in the application must be made within 60 days of
2.27the allocation of the credits. If the investment is not made within 60 days, the credit
2.28allocation is canceled and available for reallocation. A qualified investor or qualified fund
2.29that fails to invest as specified in the application, within 60 days of allocation of the
2.30credits, must notify the commissioner of the failure to invest within five business days of
2.31the expiration of the 60-day investment period.
2.32(f) All tax credit request applications filed with the department on the same day must
2.33be treated as having been filed contemporaneously. If two or more qualified investors or
2.34qualified funds file tax credit request applications on the same day, and the aggregate
2.35amount of credit allocation claims exceeds the aggregate limit of credits under this section
2.36or the lesser amount of credits that remain unallocated on that day, then the credits must
3.1be allocated among the qualified investors or qualified funds who filed on that day on a
3.2pro rata basis with respect to the amounts claimed. The pro rata allocation for any one
3.3qualified investor or qualified fund is the product obtained by multiplying a fraction,
3.4the numerator of which is the amount of the credit allocation claim filed on behalf of
3.5a qualified investor and the denominator of which is the total of all credit allocation
3.6claims filed on behalf of all applicants on that day, by the amount of credits that remain
3.7unallocated on that day for the taxable year.
3.8(g) A qualified investor or qualified fund, or a qualified small business acting on their
3.9behalf, must notify the commissioner when an investment for which credits were allocated
3.10has been made, and the taxable year in which the investment was made. A qualified fund
3.11must also provide the commissioner with a statement indicating the amount invested by
3.12each investor in the qualified fund based on each investor's share of the assets of the
3.13qualified fund at the time of the qualified investment. After receiving notification that the
3.14investment was made, the commissioner must issue credit certificates for the taxable year
3.15in which the investment was made to the qualified investor or, for an investment made by
3.16a qualified fund, to each qualified investor who is an investor in the fund. The certificate
3.17must state that the credit is subject to revocation if the qualified investor or qualified
3.18fund does not hold the investment in the qualified small business for at least three years,
3.19consisting of the calendar year in which the investment was made and the two following
3.20years. The three-year holding period does not apply if:
3.21(1) the investment by the qualified investor or qualified fund becomes worthless
3.22before the end of the three-year period;
3.23(2) 80 percent or more of the assets of the qualified small business is sold before
3.24the end of the three-year period;
3.25(3) the qualified small business is sold before the end of the three-year period; or
3.26(4) the qualified small business's common stock begins trading on a public exchange
3.27before the end of the three-year period.
3.28(h) The commissioner must notify the commissioner of revenue of credit certificates
3.29issued under this section."
3.30Renumber the sections in sequence and correct the internal references
3.31Amend the title accordingly