Frequently Asked Questions
Certified Capital Companies
- What criteria are used to determine retail sales?
- The Comptroller has determined that the state Sales and Use Tax form will be used as a basis to determine whether or not a prospective investment has retail sales revenues that are greater than 20%.
- I hit my 50% investment benchmark in 2008. Can I get a letter from the Comptroller certifying the benchmark?
- The statute requires an annual CAPCO review for the preceding calendar year. A request for a letter certifying the bench mark can only occur once your audit is complete. If you reach an investment benchmark with an investment in 2008, the audit for that investment would not occur until 2009.
Insurance Company Investors
- How do I claim Premium Tax credits?
- Credits are claimed on Form 25-100, Pg. 1, Line 23.
- When can I start taking the tax credits?
- For Program One, tax credits may be taken in 2009 for tax year 2008. For Program Two, the credits may be taken in 2013 for tax year 2012.
- What is the CAPCO Program?
- The CAPCO Program is an economic development program that is designed to provide investments in small growth companies in various industries in order to create jobs for Texans.
- How do I become a CAPCO?
- Becoming a CAPCO can be a difficult and time consuming process. There are many requirements outlined in the statute. Here are a few of the requirements:
- A completed Application for Certification on a form provided by the Comptroller;
- A nonrefundable application fee of $7,500;
- An audited balance sheet with an unqualified opinion from an independent certified public accountant. Additionally, a Statement of Auditing Standard No. 61 communications provided by the auditor, as of a date not more than 35 days before the date of application;
- Documentation that the prospective CAPCO is duly organized and qualified to do business in Texas;
- Evidence of an equity capitalization of at least $500,000 in the form of unencumbered cash or cash equivalents;
- Evidence that at least two principals or persons employed or engaged to manage the funds of the applicant have at least four years of experience in the venture capital industry.
- What are the state rules governing the CAPCO program?
- The rules governing the CAPCO program were published in the Texas Register.
- What is a Strategic Investment Area investment?
- A Strategic investment Area is an area of Texas that qualifies at the time of investment as a Strategic Investment Area under Tax Code, Chapter 171, Subchapter O, or after the expiration of that subchapter, an area that qualified as a Strategic Investment Area under that subchapter immediately before its expiration. In its simplest form, a Strategic Investment area is a rural low-income Texas county. See which counties qualify as a Strategic Investment Area.
- What is a Low-Income Community designation?
- Low-income community has the meaning assigned by Internal Revenue Code of 1986, 45D(e). These communities are designated as low-income according to their zip-codes. View the Small Business Administration's definition of a Low-Income Community.