DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 586 Engrossed 2019 Regular Session Jimmy Harris
Abstract: Authorizes an enhanced Angel Investor tax credit for investments made in Louisiana
Entrepreneurial Businesses located in federally established opportunity zones and authorizes
the pay out of the credit to the taxpayer in divided portions over two years.
Present law establishes the Angel Investor Tax Credit program which authorizes a 25% income or
corporate franchise tax credit on investments in Louisiana small businesses that are certified by
Louisiana Economic Development as "Louisiana Entrepreneurial Businesses."
Present law limits the total amount of credits granted under the program to $3.6 million per year but
authorizes the department to carry forward residual unused credits in any calendar year to subsequent
calendar years without regard to the annual credit cap.
Present law provides that the amount of the tax credit shall be based on the amount of money
invested in the La. Entrepreneurial Business, which shall not exceed $720,000 per year per business
and $1,440,000 total per business. The credits approved by the department shall be granted at the
rate of 25% of the amount of the investment with the credit divided in equal portions for three years.
Proposed law retains present law but changes the granting of the credit from 25% of the amount of
the investment with the credit divided in equal portions for three years to 25% of the amount of the
investment with the credit divided in equal portions for two years.
Proposed law retains present law and authorizes an enhanced tax credit equal to 35% of the amount
of the investment made in Louisiana Entrepreneurial Businesses located in federally established
opportunity zones. The credit shall be divided into equal portions over two years.
Proposed law establishes a cap of $3.6 million per calendar year for the enhanced tax credit which
is in addition to the $3.6 million per year cap on Angel Investor tax credits thereby establishing a
total program cap of $7.2 million per calendar year.
Present law prohibits credits from being granted or reserved under the program for applications
received on or after July 1, 2021.
Proposed law extends the sunset of the program from July 1, 2021, to July 1, 2025.
Effective upon signature of governor or lapse of time for gubernatorial action. (Amends R.S. 47:6020(D)(2)(a) and (G); Adds R.S. 47:6020(H))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the number of years the enhanced credit granted pursuant to proposed law can
be paid to the taxpayer from equal portions over three years to equal portions for two
years.
2. Change the number of years the credit provided for in present law for investments in La.
Entrepreneurial Business can be paid to the taxpayer from 25% of the amount of the
investment with the credit divided in equal portions over three years to equal portions for
two years.