Louisiana House Bill HB541

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15

Caption

Reestablishes the Angel Investor Tax Credit Program

Impact

The proposed changes are set to have a significant impact on state laws regarding tax credits and investment in entrepreneurial ventures. By reestablishing the Angel Investor Tax Credit Program, the bill aims to revitalize investments in small businesses across Louisiana, ensuring that these businesses have access to the capital necessary for growth. The alteration of the ownership percentage limit allows for broader participation from investors, thus potentially increasing the amount of capital flowing into emerging businesses and fostering economic development at the state level.

Summary

House Bill 541 aims to reestablish the Angel Investor Tax Credit Program in Louisiana, which is designed to encourage investment in local entrepreneurial businesses. The bill reduces the tax credit for qualifying investments from 35% to 30% and modifies the investment conditions, including limiting the investor's ownership percentage in the business from 50% to 30%. These adjustments reflect a strategic shift intended to streamline the tax incentive, potentially making it more attractive for investors while still supporting local businesses.

Sentiment

Sentiment surrounding HB 541 is generally positive among proponents who view the tax credits as a necessary tool for stimulating local economic growth. However, there are concerns among some stakeholders about the reduced credit percentage and the potential implications for investor interest. While supporters argue the amendments will still provide meaningful incentives, critics question if the modifications will adequately support the intended entrepreneurial growth, given the reduction in tax benefits.

Contention

Debate surrounding the bill centers on its effectiveness in genuinely promoting entrepreneurial investments. Some lawmakers are concerned that the reduced tax credit may deter potential investors, undermining the program's original intent. This contention highlights a broader discussion about how best to balance the needs of small businesses with fiscal responsibilities, raising questions about the long-term sustainability of such tax credits in supporting Louisiana's economy.