15-33-102. Purpose. The purpose of this part is to encourage private sector investment in venture capital firms called small business investment companies, which are organized for the purpose of diversifying and strengthening employment opportunities of companies within Montana. This part, by establishing limited tax exemptions, demonstrates a recognition by the legislature that significant incentives must be offered to attract private risk capital to manufacturing, agricultural, and timber product processing companies when the alternative investments for private risk capital are natural resource ventures, which often yield extremely high rates of return. The legislature further recognizes the necessity of tax incentives for investors in manufacturing, agricultural, and timber product processing, given the hardship caused many Montana communities by their reliance on an economic base dominated by single, large industries.

     History: En. Sec. 2, Ch. 571, L. 1981.