Tennessee bill backed by those with insurance interests will aid insurance companies
From Sunshine Review
June 18, 2009 A bill in the Tennessee legislature that proposes tax credit involves an investment firm that is tied to numerous national insurance companies and is connected with some of the legislators' businesses.[1]
[edit] Bill for tax credit
A bill in the Tennessee General Assembly would benefit some of the largest insurance companies in the country with substantial tax credits. Some of the bill's sponsoring legislators are somehow connected to some of these insurance companies.
The bi-partisan Tennessee Small Business Investment Company Credit Act (House Bill 2083/Senate Bill 1203) would create a $100 million fund for small business investment in Tennessee and states that a private company would manage the money. This legislation creates the Tennessee Small Business Investment Company Credit or TSBIC wherein insurance companies can pay a $7500 fee and invest $500,000 or more to qualify for the credit.
The bill would make it so the insurance companies that participate in the fund would earn a tax credit that is 80 percent of their investment in the fund against their premium tax. The decreases in state revenue thanks to the tax credit program are estimated at over $5 million each year for a minimum of five years starting Fiscal Year 2013-2014.
A company most effected by this bill would be Advantage Capital Partners, a St. Louis, Missouri company with over $1 billion in small business and private equity lending ability, which has had success lobbying for similar bills in other states.
The bill sponsors include Senators Bill Ketron (R-Murfreesboro), Eric Stewart (D-Belvidere) and the lead House sponsor for the bill, Rep. Charles Sargent (R-Franklin), is a State Farm Insurance agent. State Farm is on the Advantage Capital Partners website as having invested in "one or more of the Advantage Capital family of private equity and venture capital funds.".
"State Farm 'doesn't know anything about this bill,' insofar as he has been able to determine thus far, but that he was still trying to validate that understanding," Venture Nashville Connections reported Sargent telling the subcommittee.[1]
[edit] External links
- "Psst, wanna invest in some small companies?" Nashville Post, Business
- Tennessee website
- State Farm website
- Advantage Capital Partners website
[edit] References
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