Section 20D-101 - DefinitionsAs used in this chapter:
(1) "Affiliated group" has the meaning provided in § 1504 of the Internal Revenue Code ( 26 U.S.C. § 1504 ), but includes for purposes of this chapter a pass-through entity that would be includible if the pass-through entity was classified as a corporation, the equity interests in the pass-through entity would be treated as stock, and the ownership of such equity interests would satisfy the stock ownership requirements of § 1504 of the Internal Revenue Code ( 26 U.S.C. § 1504 ).(2) "Compensation" means that part of the sum reported on Form W-2, or equivalent form of the United States Department of Treasury, Internal Revenue Service as "Medicare wages and tips".(3) "Director" means the Director of the Division of Small Business, Development, and Tourism.(4) "Division" means the Division of Small Business, Development, and Tourism.(5) "Family" means a family member within the meaning of § 267(c)(4) of the Internal Revenue Code ( 26 U.S.C. § 267 (c)(4)).(6) "Individual", when referring to a participant in an action or process, means a human being and does not mean any of the non-human being entities included in the definition of "person" in § 302 of Title 1.(7) "Liquidation event" means a conversion of qualified investment for cash, cash and other consideration, or any other form of equity or debt interest.(8) "Officer" means a person elected or appointed by the board of directors to manage the daily operations of the qualified small business;(9) "Pass-through entity" means as defined in § 1601 of this title.(10) "Principal" means a person having authority to act on behalf of the qualified small business.(11) "Proprietary technology" means the technical innovations that are unique and legally owned or registered by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted.(12) "Qualified expenditure" means an expenditure on any of the following: real property such as buildings, warehouses or factories in this State; personal property, such as equipment, machinery, or supplies, for use only in this State; intangible property developed in this State such as copyrights, trademarks, or patents; proof of concept or prototype manufacturing in this State; and payroll and compensation paid for work performed in this State.(13) "Qualified fund" means a pooled angel investment network fund that has been certified by the Director under § 20C-104 of this title.(14) "Qualified high-technology field" includes aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, financial technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical device products, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields.(15) "Qualified investment" means a cash investment in a qualified small business of a minimum of $10,000 in a calendar year by a qualified investor or $30,000 in a calendar year by a qualified fund, that is made in exchange for common stock, a partnership or membership interest, preferred stock, debt with mandatory conversion to equity, or an equivalent ownership interest as determined by the Director.(16) "Qualified investor" means an investor who has been certified by the Director under § 20C-103 of this title.(17) "Qualified small business" means a business that has been certified by the Director under § 20C-102 of this title.Added by Laws 2017, ch. 244,s 3, eff. 5/24/2018.