Senator Wayne Neiderhauser and Lt. Governor Gary Herbert spoke to the members of MountainWest Capital Network at the June luncheon (June 19, 2008).

Senator Neiderhauser discussed his recently passed (with the support of the Utah Technology Council) legislation that helps promote investment in small companies in the State of Utah. The goal of this legislation is to become an economic driver by providing tax incentives to angel investors and venture capital limited partners. The capital gains credit, which went into effect January 1, 2008, allows investors to claim 5% non-refundable tax credit as long as 70% of the gross proceeds from capital gains on another transaction (short or long term) are invested into a Utah Small Business Corporation within 12 months of the capital gains transaction. The reinvestment can be contributed in the form of money or property, except in the form of stock or securities; and it must be a new investment to the investor (it can not be a follow on investment). The actual language of the legislation can be found in House Bill 359 Tax Changes (”Non-Refundable Credit for Capital Gains Transaction”).

Following Senator Neiderhauser, Lt. Governor Gary Herbert spoke about Utah’s economic situation. Lt. Governor Herbert discussed the need for long term economic vision, in contrast to politicians who fear being voted out of office for being overly concerned with current pressures. He also discussed the notion that whatever the political issue at hand (energy independence, public transportation, government regulation, over-taxation, education, etc.), the solution requires economic development and improvement. “We need to grow the economy, first and foremost! I don’t care what your pet issue is, it’s gotta start first with growing the economy… It is the rising tide that lifts all boats on the pond”, he articulated. He also emphasized that continued growth depends on a functional transportation system.

You can listen to the entire luncheon on the Utah Pulse:

http://utahpulse.com/featured_article/mountain_west_capital_network_06192008

— Tyler Anderson,

TheraDoc, Inc.