Millionaires Need Apply (for Tax Credits)

Legislation seems to either be overly vague or overly specific.  Take a bill in the PA House, House Bill 36, An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, providing for an angel investment tax credit.  That's an innocent enough title.  But the bill applies to a very narrow group of people.  Here are the criteria for the tax credit:

"Accredited investor." Any of the following: 

17(1) An individual whose net worth or joint net worth with the individual's spouse exceeds $1,000,000.

19(2) An individual who had individual income in excess of 20$200,000 in each of the two most recent years or joint income21 with that individual's spouse in excess of $300,000 in each22 of those years and has a reasonable expectation of reaching23 the same income level in the current year. 

24(3) Any entity in which all of the equity owners meet 25paragraph (1) or (2).

Among the criteria for the businesses these investors will help support include maintaining its headquarters in Pennsylvania for 5 years after the credit is applied for, and having 51% of their workforce employed in Pennsylvania.  If the investor doesn't use the entire tax credit the first year it can be carried over and used in subsequent years for seven years.  Note, that's 2 years after the company has to stay in Pennsylvania.  There is also wording on pass throughs and S corporations.  I don't quite grasp all of that.  Interested parties are encouraged to read the legislation for themselves.

The bill was introduced in January and is currently "laid on the table."