Creates the Louisiana Entrepreneurial Assistance and Development (LEAD) Program which grants a tax reduction to insurance companies who invest in the fund. (8/15/11)
Impact
The implementation of the LEAD Program is expected to have a substantial impact on Louisiana's economic landscape. By enabling insurance companies to invest in eligible businesses with the assurance of tax reductions, the bill promotes a shift in investment towards local enterprises, potentially revitalizing areas that have struggled with capital access. Additionally, the bill establishes clear reporting requirements for LEAD funds, ensuring accountability in how investments translate into job creation and economic contribution. The criteria for eligible investments are geared towards supporting localized development, thereby enhancing the state’s economy.
Summary
Senate Bill 246 introduces the Louisiana Entrepreneurial Assistance and Development (LEAD) Program, aimed at fostering economic growth in Louisiana by attracting venture and expansion capital to small and medium-sized businesses. The bill grants significant tax incentives to insurance companies that invest in approved LEAD funds. By providing a 75% premium tax credit for eligible capital investments, the program is designed to encourage the development of businesses that can create or retain jobs within the state. These measures are anticipated to strengthen key industry sectors such as digital media, renewable energy, and specialty health care.
Sentiment
General sentiment around the bill appears to be positive among proponents who argue that it provides much-needed support for local entrepreneurs and businesses. Advocates believe that the LEAD Program will bridge gaps in funding and stimulate job creation in various sectors. However, there may be concerns regarding the sustainability of such tax incentives and whether they will effectively lead to tangible economic outcomes. The financial risks associated with venture investments might also raise questions among stakeholders about the viability and long-term success of the program.
Contention
While the overall goal of SB246 seeks to enhance economic growth through targeted investments, there exists contention surrounding the extent of tax benefits being provided to insurance companies. Some legislators and fiscal analysts may argue that such incentives could disproportionately benefit larger insurance entities while diverting necessary funds from essential public services or leading to inefficiencies in capital allocation. Continuous oversight and assessment of the LEAD Program's impact on job creation and economic health will be necessary to address these concerns and ensure the bill meets its intended objectives.
Provides relative to premium tax credits under the Louisiana Entrepreneurial Assistance and Development (LEAD) program. (8/15/11) (EN -$37,500,000 GF RV See Note)
Creates the Louisiana Entrepreneurial Assistance and Development (LEAD) Program for tax credits for venture capital investments (OR -$37,500,000 GF RV See Note)
Authorizes the Department of Economic Development to grant up to $5 million of rebates per calendar year at the rate of 35% of an investor's investment in "Louisiana Entrepreneurial Business," not to exceed $1 million per year per business and $2 million total per business and requires the Louisiana Mega-Project Development Fund to be reduced each fiscal year by an amount which equals the rebates granted. (gov sig) (REF DECREASE GF RV See Note)
Creates the Infrastructure and Jobs Creation Tax Credit Program to fund grants for public-private partnership investment in Louisiana. (8/1/21) (OR DECREASE GF RV See Note)
Establishes the Invest Louisiana Small Business Development Fund and authorizes a premium tax credit for small business growth investments made by qualified investors. (1/1/22) (OR -$30,000,000 GF RV See Note)
Converts the Angel Investor Tax Credit Program to the Angel Investor Rebate Program and provides for the rebate program (EN -$20,000,000 GF RV See Note)
Transfers the sound recording investor tax credit program from La. Economic Development to the Dept. of Culture, Recreation and Tourism and extends the duration of the program (EN DECREASE GF RV See Note)
Provides relative to premium tax credits under the Louisiana Entrepreneurial Assistance and Development (LEAD) program. (8/15/11) (EN -$37,500,000 GF RV See Note)
Converts the Angel Investor Tax Credit Program to the Angel Investor Rebate Program and provides for the rebate program (EN -$20,000,000 GF RV See Note)
Creates the Louisiana Entrepreneurial Assistance and Development (LEAD) Program for tax credits for venture capital investments (OR -$37,500,000 GF RV See Note)
Provides for changes to the sound recording investor tax credit and provides for the amount of the expenditure verification report fee and deposit (EN DECREASE GF RV See Note)