The proposed "WV First Small Business Growth Act" aims to bolster small businesses in West Virginia by establishing a new program under the Department of Commerce. This program will support businesses with fewer than 250 employees that are primarily based in the state. Key features of the bill include a certification process for capital investment authority, which is capped at $15 million in tax credits per calendar year, and provisions for an insurance premium tax credit. Growth investors will be eligible to claim tax credits based on their capital investments, with specific percentages tied to different credit allowance dates. The bill also includes recapture provisions, allowing the Department of Commerce to reclaim credits if investment requirements are not met or if program rules are violated.

Additionally, the bill introduces amendments to existing laws regarding growth funds, including a process for determining business eligibility for investment, which requires a written opinion from the department within 15 business days. If the department does not respond within 20 business days, the business is automatically considered eligible. The bill also establishes investment prohibitions to ensure that eligible businesses do not own or invest in growth funds or their affiliates. Annual reporting requirements for growth funds are mandated, requiring detailed reports on investments, job creation, and salaries. After six years, growth funds may apply to exit the program, with the department required to respond within 15 days, and a lack of recaptured credits will support eligibility for exit.

Statutes affected:
Introduced Version: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7
Committee Substitute: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7
Engrossed Committee Substitute: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7