Kentucky
Louisiana - The Angel Investor Tax Rebate Program (HB1122)
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87% Users Support Policy
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Policy Process

Introduced
SENATE PASSED
HOUSE PASSED
SIGNED BY GOVERNOR

1/22/2009
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Policy Becomes Law


  • Policy Overview
  • This Act establishes the Angel Investor Tax Rebate Program.

    Proposed law establishes the Angel Investor Tax Rebate Program, hereinafter "program", to provide for rebates of income and corporation franchise taxes to be allotted and claimed over a five year period for qualifying taxpayers that invest in a Louisiana Entrepreneurial Business. The program shall be implemented and administered by the Dept. of Economic Development, hereinafter "department".

    Proposed law requires that the department promulgate rules in accordance with the A.P.A,, in consultation with the secretary of the Department of Revenue, to administer this program. The rules shall include provisions for:

    (1) Certification by the department with regard to the eligibility of an investor applicant for receipt of a rebate;

    (2)presentation of an investor's eligibility certification and any other documentation that may be required for a rebate application; and

    (3) Reporting requirements related for a Louisiana Entrepreneurial Business.

    Proposed law provides for qualifications for an investor to be eligible to receive tax rebates, including that the business be located in Louisiana, pre-approval of the business, and the business' ability to demonstrate through its business plan that it anticipates having more than
    50% of its sales from outside of Louisiana. Proposed law excludes businesses engaged primarily in retail sales, real estate, professional services, gaming or gambling, natural
    resource extraction or exploration, a franchisee, or financial services including venture capital funds, from participation in the program.

    Proposed law limits the total amount of rebates at $5 million which may be awarded each year by the department. If the department does not grant the entire $ 5 million of rebates in any one calendar year, the excess unused rebates shall carry forward to subsequent tax years.

    Proposed law requires the department to approve investor pools. A specific amount of rebate monies shall be set aside for each investor pool. However, no rebates shall be granted until an investment is made in a Louisiana Entrepreneurial Business.

    Proposed law provides that for investments made after January 1, 2010, an investor may be awarded rebates for income and corporation franchise taxes. Rebates shall be available in amounts approved by the secretary of the department for investments in a Louisiana Entrepreneurial Business which do not exceed $1 million dollars per year per business and $2 million per business. Rebates shall be awarded at the rate of 35% of the amount of money invested, and allotted to the investor in equal portions over five consecutive years. Rebates shall expire and have no value seven years after originally awarded.

    Proposed law authorizes the secretary to issue rebate certificates to qualified investors. A rebate certificate shall be accepted by the Dept. of Revenue as proof of the rebate. The Dept. of Economic Development shall provide the Dept. of Revenue with a copy of the certificate. The secretary of the Dept. of Revenue may require the investor to submit additional information as may be necessary to administer the provisions of proposed law.

    Proposed law provides for conditions under which a rebate shall be recaptured by the department.

    Proposed law provides for penalties for persons making false or fraudulent applications, claims for a rebate, reports, or statements relative to a participation in the program.
  • Summary/Fact Sheet Title
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  • View Full Policy
  • This Act establishes the Angel Investor Tax Rebate Program.

    Proposed law establishes the Angel Investor Tax Rebate Program, hereinafter "program", to provide for rebates of income and corporation franchise taxes to be allotted and claimed over a five year period for qualifying taxpayers that invest in a Louisiana Entrepreneurial Business. The program shall be implemented and administered by the Dept. of Economic Development, hereinafter "department".

    Proposed law requires that the department promulgate rules in accordance with the A.P.A,, in consultation with the secretary of the Department of Revenue, to administer this program. The rules shall include provisions for:

    (1) Certification by the department with regard to the eligibility of an investor applicant for receipt of a rebate;

    (2)presentation of an investor's eligibility certification and any other documentation that may be required for a rebate application; and

    (3) Reporting requirements related for a Louisiana Entrepreneurial Business.

    Proposed law provides for qualifications for an investor to be eligible to receive tax rebates, including that the business be located in Louisiana, pre-approval of the business, and the business' ability to demonstrate through its business plan that it anticipates having more than
    50% of its sales from outside of Louisiana. Proposed law excludes businesses engaged primarily in retail sales, real estate, professional services, gaming or gambling, natural
    resource extraction or exploration, a franchisee, or financial services including venture capital funds, from participation in the program.

    Proposed law limits the total amount of rebates at $5 million which may be awarded each year by the department. If the department does not grant the entire $ 5 million of rebates in any one calendar year, the excess unused rebates shall carry forward to subsequent tax years.

    Proposed law requires the department to approve investor pools. A specific amount of rebate monies shall be set aside for each investor pool. However, no rebates shall be granted until an investment is made in a Louisiana Entrepreneurial Business.

    Proposed law provides that for investments made after January 1, 2010, an investor may be awarded rebates for income and corporation franchise taxes. Rebates shall be available in amounts approved by the secretary of the department for investments in a Louisiana Entrepreneurial Business which do not exceed $1 million dollars per year per business and $2 million per business. Rebates shall be awarded at the rate of 35% of the amount of money invested, and allotted to the investor in equal portions over five consecutive years. Rebates shall expire and have no value seven years after originally awarded.

    Proposed law authorizes the secretary to issue rebate certificates to qualified investors. A rebate certificate shall be accepted by the Dept. of Revenue as proof of the rebate. The Dept. of Economic Development shall provide the Dept. of Revenue with a copy of the certificate. The secretary of the Dept. of Revenue may require the investor to submit additional information as may be necessary to administer the provisions of proposed law.

    Proposed law provides for conditions under which a rebate shall be recaptured by the department.

    Proposed law provides for penalties for persons making false or fraudulent applications, claims for a rebate, reports, or statements relative to a participation in the program.

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Comments

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Desperately needed to encourage startups and overcome the barrier to capital for the emerging entrepreneurial ecosystem in Louisiana...Please make this happen!

04/10/2010 10:10 AM

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