90-8-104. Definitions.
90-8-104. Definitions. As used in this chapter, unless the context requires otherwise, the following definitions apply:
(1) "Capital base" means equity capital raised by a certified Montana capital company or by a certified Montana small business investment capital company for which tax credits were claimed under this chapter.
(2) "Certified Montana capital company" or "certified Montana small business investment capital company" means:
(a) a development credit corporation created pursuant to Title 32, chapter 4; or
(b) a profit or nonprofit entity organized and existing under the laws of Montana, created for the purpose of making venture or risk capital available for qualified investments and that has been certified by the department.
(3) "Department" means the department of commerce.
(4) "Montana business" means a business that is located or principally based within Montana.
(5) "Qualified investment" means an investment that does not violate any of the provisions of this chapter, that does not displace other sources of equity or debt financing that are available to the project unless the department determines that the investment furthers the purposes of this chapter, and that is:
(a) a debt or equity financing of a Montana business that meets both of the following criteria:
(i) the business is engaged in one or more of the following activities:
(A) manufacturing;
(B) agricultural, fishery, or forestry production and processing;
(C) mineral production and processing, except for conventional oil and gas exploration;
(D) recognized nonfossil forms of energy generation or the manufacture of low-emission wood or biomass combustion devices as defined in 15-32-102;
(E) transportation;
(F) research and development of products or processes associated with any of the activities enumerated in subsections (5)(a)(i)(A) through (5)(a)(i)(E);
(G) wholesale or retail distribution activities for which products produced in Montana comprise 50% or more of the gross sales receipts;
(H) any activity conducted in the state for which 50% or more of the gross receipts are derived from the sale of products or services outside Montana;
(I) tourism; and
(J) the production of energy using an alternative renewable energy source as defined in 15-6-225; and
(ii) the business is a small business as defined in rules adopted by the department and is a small business pursuant to the regulations promulgated by the United States small business administration at 13 CFR 121, et seq.;
(b) a debt or equity financing of a business outside Montana if the investment is likely to produce a qualified investment in Montana, as long as the investment does not exceed 25% of the capital base of the capital company; or
(c) a debt or equity financing of an acquisition of a non-Montana business that will be relocated in Montana.
(6) "Qualified Montana capital company" means a certified Montana capital company that has been designated a qualified capital company under the provisions of 90-8-202 so that investors in the company may receive the tax credits authorized in 90-8-202.
(7) "Qualified Montana small business investment capital company" means a certified Montana small business investment capital company that has been designated as a qualified small business investment capital company under the provisions of 90-8-202 so that investors in the company may receive the tax credits authorized in 90-8-202.
History: En. Sec. 4, Ch. 554, L. 1983; amd. Sec. 18, Ch. 554, L. 1983; amd. Sec. 154, Ch. 370, L. 1987; amd. Sec. 16, Ch. 581, L. 1987; amd. Sec. 1, Ch. 583, L. 1987; amd. Sec. 2, Ch. 708, L. 1989; amd. Sec. 3, Ch. 263, L. 1991; amd. Sec. 4, Ch. 467, L. 1991; amd. Sec. 1, Ch. 576, L. 1991; amd. Sec. 2, Ch. 410, L. 1999; amd. Sec. 26, Ch. 591, L. 2001; amd. Sec. 13, Ch. 405, L. 2003.