In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
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Question: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Review EPA's Language on Agriculture 
and Thoroughly Engage with the Farm Act of 2013'' or the ``RELATE with 
the Farm Act of 2013''.

SEC. 2. REGULATORY REVIEW BY THE SECRETARY OF AGRICULTURE.

    (a) Review of Regulatory Agenda.--The Secretary of Agriculture 
shall review publications that may give notice that the Environmental 
Protection Agency is preparing or plans to prepare any guidance, 
policy, memorandum, regulation, or statement of general applicability 
and future effect that may have a significant impact on a substantial 
number of agricultural entities, including--
            (1) any regulatory agenda of the Environmental Protection 
        Agency published pursuant to section 602 of title 5, United 
        States Code;
            (2) any regulatory plan or agenda published by the 
        Environmental Protection Agency or the Office of Management and 
        Budget pursuant to an Executive order, including Executive 
        Order 12866; and
            (3) any other publication issued by the Environmental 
        Protection Agency or the Office of Management and Budget that 
        may reasonably be foreseen to contain notice of plans by the 
        Environmental Protection Agency to prepare any guidance, 
        policy, memorandum, regulation, or statement of general 
        applicability and future effect that may have a significant 
        impact on a substantial number of agricultural entities.
    (b) Information Gathering.--For a publication item reviewed under 
subsection (a) that the Secretary determines may have a significant 
impact on a substantial number of agricultural entities, the Secretary 
shall--
            (1) solicit from the Administrator of the Environmental 
        Protection Agency any information the Administrator may provide 
        to facilitate a review of the publication item;
            (2) utilize the Chief Economist of the Department of 
        Agriculture to produce an economic impact statement for the 
        publication item that contains a detailed estimate of potential 
        costs to agricultural entities;
            (3) identify individuals representative of potentially 
        affected agricultural entities for the purpose of obtaining 
        advice and recommendations from such individuals about the 
        potential impacts of the publication item; and
            (4) convene a review panel for analysis of the publication 
        item that includes the Secretary, any full-time Federal 
        employee of the Department of Agriculture appointed to the 
        panel by the Secretary, and any employee of the Environmental 
        Protection Agency or the Office of Information and Regulatory 
        Affairs within the Office of Management and Budget that accepts 
        an invitation from the Secretary to participate in the panel.
    (c) Duties of the Review Panel.--A review panel convened for a 
publication item under subsection (b)(4) shall--
            (1) review any information or material obtained by the 
        Secretary and prepared in connection with the publication item, 
        including any draft proposed guidance, policy, memorandum, 
        regulation, or statement of general applicability and future 
        effect;
            (2) collect advice and recommendations from agricultural 
        entity representatives identified by the Administrator after 
        consultation with the Secretary;
            (3) compile and analyze such advice and recommendations; 
        and
            (4) make recommendations to the Secretary based on the 
        information gathered by the review panel or provided by 
        agricultural entity representatives.
    (d) Comments.--
            (1) In general.--Not later than 60 days after the date the 
        Secretary convenes a review panel pursuant to subsection 
        (b)(4), the Secretary shall submit to the Administrator 
        comments on the planned or proposed guidance, policy, 
        memorandum, regulation, or statement of general applicability 
        and future effect for consideration and inclusion in any 
        related administrative record, including--
                    (A) a report by the Secretary on the concerns of 
                agricultural entities;
                    (B) the findings of the review panel;
                    (C) the findings of the Secretary, including any 
                adopted findings of the review panel; and
                    (D) recommendations of the Secretary.
            (2) Publication.--The Secretary shall publish the comments 
        in the Federal Register and make the comments available to the 
        public on the public Internet website of the Department of 
        Agriculture.
    (e) Waivers.--The Secretary may waive initiation of the review 
panel under subsection (b)(4) as the Secretary determines appropriate.
    (f) Definition of Agricultural Entity.--In this section, the term 
``agricultural entity'' means any entity involved in or related to 
agricultural enterprise, including enterprises that are engaged in the 
business of production of food and fiber, ranching and raising of 
livestock, aquaculture, and all other farming and agricultural related 
industries.

Answer: Review EPA's Language on Agriculture and Thoroughly Engage with the Farm Act of 2013 or the RELATE with the Farm Act of 2013 - Directs the Secretary of Agriculture (USDA) to review publications that may give notice that the Environmental Protection Agency (EPA) is preparing or plans to prepare any guidance, policy, memorandum, regulation, or statement of general applicability and future effect that may have a significant impact on a substantial number of agricultural entities. Requires the Secretary, for each publication item determined to have a possible significant impact, to: (1) solicit from the EPA Administrator information to facilitate a review of the item, (2) produce an economic impact statement, (3) identify representatives of potentially affected agricultural entities to obtain advice and recommendations about the potential impacts of the item, and (4) convene a review panel that includes the Secretary to analyze the publication item. Provides procedures for submission by the Secretary of comments to the Administrator for inclusion in the administrative record and for waiver of a panel's initiation.


Question: SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Johnson-O'Malley Supplemental Indian 
Education Program Modernization Act''.
SEC. 2. INDIAN EDUCATION PROGRAM STUDENT COUNT UPDATE.
    The Act of April 16, 1934 (25 U.S.C. 5342 et seq.) (commonly 
referred to as the Johnson-O'Malley Act) is amended by adding at the 
end the following:
``SEC. 7. COMPUTATION OF STUDENT COUNT.
    ``(a) Definitions.--For the purposes of this Act, the following 
definitions apply:
        ``(1) Contracting party.--The term `contracting party' means an 
    entity that has a contract through a program authorized under this 
    Act.
        ``(2) Eligible entity.--The term `eligible entity' means an 
    entity that is eligible to apply for a contract for a supplemental 
    or operational support program under this Act, as outlined in 
    section 1.
        ``(3) Existing contracting party.--The term `existing 
    contracting party' means a contracting party that has a contract 
    under this Act that is in effect on the date of enactment of the 
    JOM Modernization Act.
        ``(4) JOM modernization act.--The term `JOM Modernization Act' 
    means the Johnson-O'Malley Supplemental Indian Education Program 
    Modernization Act.
        ``(5) New contracting party.--The term `new contracting party' 
    means an entity that enters into a contract under this Act after 
    the date of enactment of the JOM Modernization Act.
        ``(6) Secretary.--The term `Secretary' means the Secretary of 
    the Interior.
    ``(b) Determination of the Number of Eligible Indian Students.--
        ``(1) Initial determinations.--
            ``(A) In general.--The Secretary shall make an initial 
        determination of the number of eligible Indian students served 
        or potentially served by each eligible entity in accordance 
        with subparagraph (B).
            ``(B) Process for making the initial determination.--
                ``(i) Preliminary report.--Not later than 180 days 
            after the date of enactment of the JOM Modernization Act, 
            the Secretary shall publish a preliminary report describing 
            the number of eligible Indian students served or 
            potentially served by each eligible entity, using the most 
            applicable and accurate data (as determined by the 
            Secretary in consultation with eligible entities) from the 
            fiscal year preceding the fiscal year for which the initial 
            determination is to be made from--

                    ``(I) the Bureau of the Census;
                    ``(II) the National Center for Education 
                Statistics; or
                    ``(III) the Office of Indian Education of the 
                Department of Education.

                ``(ii) Data reconciliation.--To improve the accuracy of 
            the preliminary report described in clause (i) prior to 
            publishing, the Secretary shall reconcile the data 
            described in the preliminary report with--

                    ``(I) each existing contracting party's data 
                regarding the number of eligible Indian students served 
                by the existing contracting party for the fiscal year 
                preceding the fiscal year for which the initial 
                determination is made; and
                    ``(II) identifiable tribal enrollment information.

                ``(iii) Comment period.--After publishing the 
            preliminary report under clause (i) in accordance with 
            clause (ii), the Secretary shall establish a 60-day comment 
            period to gain feedback about the preliminary report from 
            eligible entities, which the Secretary shall take into 
            consideration in preparing the final report described in 
            clause (iv).
                ``(iv) Final report.--Not later than 120 days after 
            concluding the consultation described in clause (iii), the 
            Secretary shall publish a final report on the initial 
            determination of the number of eligible Indian students 
            served or potentially served by each eligible entity, 
            including justification for not including any feedback 
            gained during such consultation, if applicable.
        ``(2) Subsequent academic years.--For each academic year 
    following the fiscal year for which an initial determination is 
    made under paragraph (1) to determine the number of eligible Indian 
    students served or potentially served by a contracting party, the 
    Secretary shall determine the number of eligible Indian students 
    served by the contracting party based on the reported eligible 
    Indian student count numbers identified through the reporting 
    process described in subsection (c).
    ``(c) Contracting Party Student Count Reporting Compliance.--
        ``(1) In general.--For each academic year following the fiscal 
    year for which an initial determination is made under subsection 
    (b) to determine the number of eligible Indian students served or 
    potentially served by a contracting party, the contracting party 
    shall submit to the Secretary a report describing the number of 
    eligible Indian students who were served using amounts allocated to 
    such party under this Act during the previous fiscal year. The 
    report shall also include an accounting of the amounts and purposes 
    for which the contract funds were expended.
        ``(2) Failure to comply.--A contracting party that fails to 
    submit a report under paragraph (1) shall receive no amounts under 
    this Act for the fiscal year following the academic year for which 
    the report should have been submitted.
        ``(3) Notice.--The Secretary shall provide contracting parties 
    with timely information relating to--
            ``(A) initial and final reporting deadlines; and
            ``(B) the consequences of failure to comply outlined in 
        paragraph (2).
        ``(4) Technical assistance.--The Secretary, acting through the 
    Director of the Bureau of Indian Education, shall provide technical 
    assistance and training on compliance with the reporting 
    requirements of this subsection to contracting parties.
    ``(d) Annual Report.--
        ``(1) In general.--The Secretary shall prepare an annual 
    report, including the most recent determination of the number of 
    eligible Indian students served by each contracting party, 
    recommendations on appropriate funding levels for the program based 
    on such determination, and an assessment of the contracts under 
    this Act that the Secretary--
            ``(A) may include in the budget request of the Department 
        of the Interior for each fiscal year;
            ``(B) shall submit to--
                ``(i) the Committee on Indian Affairs of the Senate;
                ``(ii) the Subcommittee on Interior, Environment, and 
            Related Agencies of the Committee on Appropriations of the 
            Senate;
                ``(iii) the Committee on Education and the Workforce of 
            the House of Representatives; and
                ``(iv) the Subcommittee on Interior, Environment, and 
            Related Agencies of the Committee on Appropriations of the 
            House of Representatives; and
            ``(C) shall make publicly available.
        ``(2) Manner of preparation.--The Secretary shall prepare the 
    report under paragraph (1) in a manner so as to prevent or minimize 
    new administrative burdens on contracting parties receiving funds 
    under this Act.
    ``(e) Hold Harmless.--
        ``(1) Initial hold harmless.--
            ``(A) In general.--Except as provided under subparagraph 
        (B) and subject to subparagraphs (C) and (D), for a fiscal 
        year, an existing contracting party shall not receive an amount 
        under this Act that is less than the amount that such existing 
        contracting party received under this Act for the fiscal year 
        preceding the date of enactment of the JOM Modernization Act.
            ``(B) Exceptions.--
                ``(i) In general.--An existing contracting party shall 
            receive an amount under this Act for a fiscal year that is 
            less than the amount that the existing contracting party 
            received under this Act for the fiscal year preceding the 
            date of enactment of the JOM Modernization Act, if one or 
            more of the following conditions is met:

                    ``(I) Failure to report.--The existing contracting 
                party failed to submit a complete report described in 
                subsection (c) that was most recently due from the date 
                of the determination.
                    ``(II) Violations of contract or law.--The 
                Secretary has found that the existing contracting party 
                has violated the terms of a contract entered into under 
                this Act or has otherwise violated Federal law.
                    ``(III) Student count decrease.--The number of 
                eligible Indian students reported by such existing 
                contracting party under subsection (c) has decreased 
                below the number of eligible Indian students served by 
                the existing contracting party in the fiscal year 
                preceding the date of enactment of the JOM 
                Modernization Act.

                ``(ii) Amount of funding reduction for existing 
            contracting parties reporting decreased student counts.--A 
            reduction in an amount pursuant to clause (i)(III) shall 
            not be done in such a manner that the existing contracting 
            party receives an amount of funding per eligible Indian 
            student that is less than the amount of funding per 
            eligible Indian student such party received for the fiscal 
            year preceding the date of enactment of the JOM 
            Modernization Act.
            ``(C) Ratable reductions in appropriations.--If the funds 
        available under this Act for a fiscal year are insufficient to 
        pay the full amounts that all existing contracting parties are 
        eligible to receive under subparagraph (A) for the fiscal year, 
        the Secretary shall ratably reduce those amounts for the fiscal 
        year.
            ``(D) Sunset.--This paragraph shall cease to be effective 4 
        years after the date of enactment of the JOM Modernization Act.
        ``(2) Maximum decrease after 4 years.--Beginning 4 years after 
    the date of enactment of the JOM Modernization Act, no contracting 
    party shall receive for a fiscal year more than a 10 percent 
    decrease in funding per eligible Indian student from the previous 
    fiscal year.
    ``(f) Funding Allocation and Reform.--
        ``(1) Funding reform.--The Secretary may make recommendations 
    for legislation to increase the amount of funds available per 
    eligible Indian student through contracts under this Act to equal 
    to or greater than the amount of funds that were available per 
    eligible Indian student through contracts under this Act for fiscal 
    year 1995, and attempt to identify additional sources of funding 
    that do not reallocate existing funds otherwise utilized by Indian 
    students served--
            ``(A) by the Bureau of Indian Education; or
            ``(B) under title VI of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7401 et seq.).
        ``(2) Increases in program funding.--
            ``(A) In general.--Subject to subsection (e) and 
        subparagraph (B), for any fiscal year for which the amount 
        appropriated to carry out this Act exceeds the amount 
        appropriated to carry out this Act for the preceding fiscal 
        year, the excess amounts shall--
                ``(i) be allocated only to those contracting parties 
            that did not receive their full per student funding 
            allocation for the previous fiscal year; and
                ``(ii) be allocated first to new contracting parties 
            that did not receive their full per student funding 
            allocation for the previous fiscal year.
            ``(B) Parity in funding.--Subparagraph (A) shall have no 
        effect after the first fiscal year for which each contracting 
        party receives their full per student funding allocation.
    ``(g) Increased Geographical and Tribal Participation in the 
Johnson-O'Malley Supplementary Education Program.--To the maximum 
extent practicable, the Secretary shall consult with Indian tribes and 
contact State educational agencies, local educational agencies, and 
Alaska Native organizations that have not previously entered into a 
contract under this Act--
        ``(1) to determine the interest of the Indian tribes, State 
    educational agencies, local educational agencies, and Alaska Native 
    organizations, in entering into such contracts; and
        ``(2) to share information relating to the process for entering 
    into a contract under this Act.
    ``(h) Rulemaking.--
        ``(1) In general.--Not later than 1 year after the date of 
    enactment of the JOM Modernization Act, the Secretary, acting 
    through the Director of the Bureau of Indian Education, shall 
    undertake and complete a rulemaking process, following the 
    provisions of subchapter II of chapter 5 of title 5, United States 
    Code, to--
            ``(A) determine how the regulatory definition of `eligible 
        Indian student' may be revised to clarify eligibility 
        requirements for contracting parties under this Act;
            ``(B) determine, as necessary, how the funding formula 
        described in section 273.31 of title 25, Code of Federal 
        Regulations (as in effect on the day before the date of 
        enactment of the JOM Modernization Act) may be clarified and 
        revised to ensure full participation of contracting parties and 
        provide clarity on the funding process under this Act; and
            ``(C) otherwise reconcile and modernize the rules to 
        comport with the activities of the contracting parties under 
        this Act as of the date of enactment of the JOM Modernization 
        Act.
        ``(2) Report.--Not later than 30 days after the date the 
    rulemaking under paragraph (1) is complete, the Secretary shall 
    submit a report to Congress describing the results of such 
    rulemaking and necessary recommendations to ensure the full 
    implementation of such rulemaking.
    ``(i) Student Privacy.--The Secretary shall ensure that data is 
collected and each report is prepared under this section in a manner 
that protects the rights of eligible Indian students in accordance with 
section 444 of the General Education Provisions Act (commonly referred 
to as the Family Educational Rights and Privacy Act of 1974) (20 U.S.C. 
1232g).
    ``(j) GAO Report.--Not later than 18 months after the final report 
described in subsection (b)(1)(B)(iv) is published, the Comptroller 
General shall--
        ``(1) conduct a review of the implementation of this section 
    during the preceding 2-year period, including any factors 
    impacting--
            ``(A) the accuracy of the determinations of the number of 
        eligible Indian students under this section;
            ``(B) the communication between the Bureau of Indian 
        Education and contracting parties; and
            ``(C) the efforts by the Bureau of Indian Education to 
        ensure accurate and sufficient distribution of funding for 
        Indian students;
        ``(2) submit a report describing the results of the review 
    under paragraph (1) to--
            ``(A) the Committee on Indian Affairs of the Senate;
            ``(B) the Subcommittee on Interior, Environment, and 
        Related Agencies of the Committee on Appropriations of the 
        Senate;
            ``(C) the Subcommittee on Indian, Insular and Alaska Native 
        Affairs of the Committee on Natural Resources of the House of 
        Representatives; and
            ``(D) the Subcommittee on Interior, Environment, and 
        Related Agencies of the Committee on Appropriations of the 
        House of Representatives; and
        ``(3) make such report publicly available.
    ``(k) Effect.--Nothing in this section--
        ``(1) creates a new program or duplicates program activities 
    under this Act; or
        ``(2) replaces or diminishes the effect of regulations to carry 
    out this Act existing on the day before the date of enactment of 
    the JOM Modernization Act, unless expressly provided in this 
    section.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Answer: Johnson-O'Malley Supplemental Indian Education Program Modernization Act This bill requires the Department of the Interior to annually update the count of Indian students eligible for the Johnson-O'Malley Program (JOM Program). The JOM Program awards contracts to tribal organizations, schools, states, and others to support the cultural and academic needs of Indian students. The contract amounts are based on the number of students served. Contracting parties must annually report to Interior on the number of students they serve. If they fail to submit the report, then Interior may not give them program funds for the next fiscal year.  The bill sets forth a process to revise funding allocations provided under the program.  Interior must consult with Indian tribes and state and local education agencies that have not participated in the program to determine their interest in entering into contracts. The Bureau of Indian Education must determine how: (1) the regulatory definition of eligible student may be clarified for contracting parties, and (2) the program funding formula may be updated to ensure the full participation of contracting parties and provide clarity on the funding process.


Question: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Invest in Innovative Small 
Businesses Act''.

SEC. 2. ANGEL INVESTMENT TAX CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. ANGEL INVESTMENT TAX CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 25 percent of the qualified equity investments made by a 
qualified investor during the taxable year.
    ``(b) Qualified Equity Investment.--For purposes of this section--
            ``(1) In general.--The term `qualified equity investment' 
        means any equity investment in a qualified small business 
        entity if--
                    ``(A) such investment is acquired by the taxpayer 
                at its original issue (directly or through an 
                underwriter) solely in exchange for cash, and
                    ``(B) such investment is designated for purposes of 
                this section by the qualified small business entity.
            ``(2) Equity investment.--The term `equity investment' 
        means--
                    ``(A) any form of equity, including a general or 
                limited partnership interest, common stock, preferred 
                stock (other than nonqualified preferred stock as 
                defined in section 351(g)(2)), with or without voting 
                rights, without regard to seniority position and 
                whether or not convertible into common stock or any 
                form of subordinate or convertible debt, or both, with 
                warrants or other means of equity conversion, and
                    ``(B) any capital interest in an entity which is a 
                partnership.
            ``(3) Redemptions.--A rule similar to the rule of section 
        1202(c)(3) shall apply for purposes of this subsection.
    ``(c) Qualified Small Business Entity.--For purposes of this 
section--
            ``(1) In general.--The term `qualified small business 
        entity' means any domestic corporation or partnership if such 
        corporation or partnership--
                    ``(A) is a small business (as defined in section 
                41(b)(3)(D)(iii)),
                    ``(B) has its headquarters in the United States,
                    ``(C) is engaged in a high technology trade or 
                business related to--
                            ``(i) advanced materials, nanotechnology, 
                        or precision manufacturing,
                            ``(ii) aerospace, aeronautics, or defense,
                            ``(iii) biotechnology or pharmaceuticals,
                            ``(iv) electronics, semiconductors, 
                        software, or computer technology,
                            ``(v) energy, environment, or clean 
                        technologies,
                            ``(vi) forest products or agriculture,
                            ``(vii) information technology, 
                        communication technology, digital media, or 
                        photonics,
                            ``(viii) life sciences or medical sciences,
                            ``(ix) marine technology or aquaculture,
                            ``(x) transportation, or
                            ``(xi) any other high technology trade or 
                        business as determined by the Secretary,
                    ``(D) has been in existence for less than 5 years 
                as of the date of the qualified equity investment,
                    ``(E) employs less than 100 full-time equivalent 
                employees as of the date of such investment,
                    ``(F) has more than 50 percent of the employees 
                performing substantially all of their services in the 
                United States as of the date of such investment, and
                    ``(G) has equity investments designated for 
                purposes of this paragraph.
            ``(2) Designation of equity investments.--For purposes of 
        paragraph (1)(G), an equity investment shall not be treated as 
        designated if such designation would result in the aggregate 
        amount which may be taken into account under this section with 
        respect to equity investments in such corporation or 
        partnership exceeds--
                    ``(A) $10,000,000, taking into account the total 
                amount of all qualified equity investments made by all 
                taxpayers for the taxable year and all preceding 
                taxable years,
                    ``(B) $2,000,000, taking into account the total 
                amount of all qualified equity investments made by all 
                taxpayers for such taxable year, and
                    ``(C) $1,000,000, taking into account the total 
                amount of all qualified equity investments made by the 
                taxpayer for such taxable year.
    ``(d) Qualified Investor.--For purposes of this section--
            ``(1) In general.--The term `qualified investor' means an 
        accredited investor, as defined by the Securities and Exchange 
        Commission, investor network, or investor fund who review new 
        or proposed businesses for potential investment.
            ``(2) Investor network.--The term `investor network' means 
        a group of accredited investors organized for the sole purpose 
        of making qualified equity investments.
            ``(3) Investor fund.--
                    ``(A) In general.--The term `investor fund' means a 
                corporation that for the applicable taxable year is 
                treated as an S corporation or a general partnership, 
                limited partnership, limited liability partnership, 
                trust, or limited liability company and which for the 
                applicable taxable year is not taxed as a corporation.
                    ``(B) Allocation of credit.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the credit allowed under 
                        subsection (a) shall be allocated to the 
                        shareholders or partners of the investor fund 
                        in proportion to their ownership interest or as 
                        specified in the fund's organizational 
                        documents, except that tax-exempt investors 
                        shall be allowed to transfer their interest to 
                        investors within the fund in exchange for 
                        future financial consideration.
                            ``(ii) Single member limited liability 
                        company.--If the investor fund is a single 
                        member limited liability company that is 
                        disregarded as an entity separate from its 
                        owner, the credit allowed under subsection (a) 
                        may be claimed by such limited liability 
                        company's owner, if such owner is a person 
                        subject to the tax under this title.
            ``(4) Exclusion.--The term `qualified investor' does not 
        include--
                    ``(A) a person controlling at least 50 percent of 
                the qualified small business entity,
                    ``(B) an employee of such entity, or
                    ``(C) any bank, bank and trust company, insurance 
                company, trust company, national bank, savings 
                association or building and loan association for 
                activities that are a part of its normal course of 
                business.
    ``(e) National Limitation on Amount of Investments Designated.--
            ``(1) In general.--There is an angel investment tax credit 
        limitation of $500,000,000 for each of calendar years 2018 
        through 2022.
            ``(2) Allocation of limitation.--The limitation under 
        paragraph (1) shall be allocated by the Secretary among 
        qualified small business entities selected by the Secretary.
            ``(3) Carryover of unused limitation.--If the angel 
        investment tax credit limitation for any calendar year exceeds 
        the aggregate amount allocated under paragraph (2) for such 
        year, such limitation for the succeeding calendar year shall be 
        increased by the amount of such excess. No amount may be 
        carried under the preceding sentence to any calendar year after 
        2027.
    ``(f) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--Except as provided in paragraph (2), the credit which 
        would be allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) shall be treated 
        as a credit listed in section 38(b) for such taxable year (and 
        not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--In the case of an individual who 
                elects the application of this paragraph, for purposes 
                of this title, the credit allowed under subsection (a) 
                for any taxable year (determined after application of 
                paragraph (1)) shall be treated as a credit allowable 
                under subpart A for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subpart A for any 
                taxable year (determined after application of paragraph 
                (1)) by reason of subparagraph (A) shall not exceed the 
                excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section) and 
                        section 27 for the taxable year.
                    ``(C) Carryforward of unused credit.--If the credit 
                allowable under subsection (a) by reason of 
                subparagraph (A) exceeds the limitation imposed by 
                section 26(a)(1) or subparagraph (B), whichever is 
                applicable, for such taxable year, reduced by the sum 
                of the credits allowable under subpart A (other than 
                this section) for such taxable year, such excess shall 
                be carried to each of the succeeding 20 taxable years 
                to the extent that such unused credit may not be taken 
                into account under subsection (a) by reason of 
                subparagraph (A) for a prior taxable year because of 
                such limitation.
    ``(g) Special Rules.--
            ``(1) Related parties.--For purposes of this section--
                    ``(A) In general.--All related persons shall be 
                treated as 1 person.
                    ``(B) Related persons.--A person shall be treated 
                as related to another person if the relationship 
                between such persons would result in the disallowance 
                of losses under section 267 or 707(b).
            ``(2) Basis.--For purposes of this subtitle, the basis of 
        any investment with respect to which a credit is allowable 
        under this section shall be reduced by the amount of such 
        credit so allowed. This subsection shall not apply for purposes 
        of sections 1202, 1397B, and 1400B.
            ``(3) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any qualified equity 
        investment which is held by the taxpayer less than 3 years, 
        except that no benefit shall be recaptured in the case of--
                    ``(A) transfer of such investment by reason of the 
                death of the taxpayer,
                    ``(B) transfer between spouses,
                    ``(C) transfer incident to the divorce (as defined 
                in section 1041) of such taxpayer, or
                    ``(D) a transaction to which section 381(a) applies 
                (relating to certain acquisitions of the assets of one 
                corporation by another corporation).
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out this section, including 
regulations--
            ``(1) which prevent the abuse of the purposes of this 
        section,
            ``(2) which impose appropriate reporting requirements, and
            ``(3) which apply the provisions of this section to newly 
        formed entities.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of the Internal Revenue Code of 1986 is amended--
            (1) in paragraph (35), by striking ``plus'';
            (2) in paragraph (36), by striking the period at the end 
        and inserting ``, plus''; and
            (3) by adding at the end the following new paragraph:
            ``(37) the portion of the angel investment tax credit to 
        which section 30E(f)(1) applies.''.
    (c) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (36), by 
        striking the period at the end of paragraph (37) and inserting 
        ``, and'', and by inserting after paragraph (37) the following 
        new paragraph:
            ``(38) to the extent provided in section 30E(g)(2).''.
    (d) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 30E. Angel investment tax credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to investments made after December 31, 2017, in taxable years 
ending after such date.
    (f) Regulations on Allocation of National Limitation.--Not later 
than 120 days after the date of the enactment of this Act, the 
Secretary of the Treasury or the Secretary's delegate shall prescribe 
regulations which specify--
            (1) how small business entities shall apply for an 
        allocation under section 30E(e)(2) of the Internal Revenue Code 
        of 1986, as added by this section;
            (2) the competitive procedure through which such 
        allocations are made;
            (3) the criteria for determining an allocation to a small 
        business entity, including--
                    (A) whether the small business entity is located in 
                a State that is historically underserved by angel 
                investors and venture capital investors;
                    (B) whether the small business entity has received 
                an angel investment tax credit, or its equivalent, from 
                the State in which the small business entity is located 
                and registered;
                    (C) whether small business entities in low-, 
                medium-, and high-population density States are 
                receiving allocations; and
                    (D) whether the small business entity has been 
                awarded a Small Business Innovative Research or Small 
                Business Technology Transfer grant from a Federal 
                agency;
            (4) the actions that such Secretary or delegate shall take 
        to ensure that such allocations are properly made to qualified 
        small business entities; and
            (5) the actions that such Secretary or delegate shall take 
        to ensure that angel investment tax credits are allocated and 
        issued to the taxpayer.
    (g) Audit and Report.--Not later than January 31, 2021, the 
Comptroller General of the United States, pursuant to an audit of the 
angel investment tax credit program established under section 30E of 
the Internal Revenue Code of 1986 (as added by subsection (a)), shall 
report to Congress on such program, including all qualified small 
business entities that receive an allocation of an angel investment 
credit under such section.

Answer:
Invest in Innovative Small Businesses Act This bill amends the Internal Revenue Code to allow a new business-related tax credit equal to 25% of the equity investments made by a qualified investor &nbsp;in a domestic corporation or partnership that:   is a small business,   has its headquarters in the United States,   is engaged in a specified high technology trade or business, has been in existence for less than 5 years,  employs fewer than 100 full-time employees,  has more than 50% of its employees performing substantially all of their services in the United States, and has certain equity investments designated for the purposes of this bill that do not exceed specified amounts.   The bill limits the allowable amount of such credit to the excess of the sum of regular tax liability, plus the tax under provisions regarding the alternative minimum tax, over the sum of specified tax credits allowed for the year. It also imposes an overall limitation on such credit of $500 million for each of calendar years 2018 through 2022.