I 
113TH CONGRESS 
1ST SESSION 
H. R. 122 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for equity investments in high technology small business concerns. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 3, 2013 
Mr. HOLT introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
credit against income tax for equity investments in high 
technology small business concerns. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Creating Jobs From 
Innovative Small Businesses Act of 2013’’. 
SEC. 2. CREDIT FOR INVESTMENTS IN SMALL TECHNOLOGY 
INNOVATION COMPANIES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. HIGH TECHNOLOGY INVESTMENT TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the high technology investment tax credit deter-
mined under this section for the taxable year is an amount 
equal to 20 percent of the amount paid by the taxpayer 
during such year to acquire a qualified equity investment 
in a qualified high technology small business concern. 
‘‘(b) MAXIMUM CREDIT.— 
‘‘(1) IN GENERAL.—The taxpayer’s credit de-
termined under this section for the taxable year 
shall not exceed the excess (if any) of— 
‘‘(A) $100,000, over 
‘‘(B) the taxpayer’s (and any prede-
cessor’s) aggregate credit determined under this 
section for all prior taxable years. 
‘‘(2) RELATED PARTIES.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), all related persons shall be treated as 
1 person, and the dollar amount in paragraph 
(1)(A) shall be allocated among such persons 
under regulations prescribed by the Secretary. 
‘‘(B) RELATED PERSONS.—A person shall 
be treated as related to another person if the 
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relationship between such persons would result 
in the disallowance of losses under section 267 
or 707(b). 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED EQUITY INVESTMENT.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
equity investment’ means any equity investment 
in a qualified high technology small business 
concern if— 
‘‘(i) such investment is acquired by 
the taxpayer at its original issue (directly 
or through an underwriter) solely in ex-
change for cash, and 
‘‘(ii) such investment is designated for 
purposes of this section by such concern. 
‘‘(B) EQUITY
INVESTMENT.—The term 
‘equity investment’ means— 
‘‘(i) any stock (other than non-
qualified preferred stock as defined in sec-
tion 351(g)(2)) in an entity which is a cor-
poration, and 
‘‘(ii) any capital interest in an entity 
which is a partnership. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to investments made after Decem-
ber 31, 2012, in taxable years ending after such date. 
Æ 
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