SLS 23RS-318 ORIGINAL
2023 Regular Session
SENATE BILL NO. 108
BY SENATOR HARRIS
TAX/TAXATION. Provides relative to the Angel Investor Tax Credit Program. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 47:6020(G) and (H), relative to the Angel Investor Tax Credit
3 Program; to provide for meeting the requirements for an enhanced credit under the
4 program; to provide for the use of unused credits; to provide for exceptions to
5 meeting general program requirements; to extend the program sunset date; to provide
6 for applicability; to provide for an effective date; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6020(G) and (H) are hereby amended and reenacted to read as
9 follows:
10 ยง6020. Angel Investor Tax Credit Program
11 * * *
12 G. Except as provided for in Paragraph (3) of this Subsection, applications
13 Applications received on or after July 1, 2020, for investments that meet the
14 requirements of Subsection C of this Section and the requirements of 26 U.S.C.
15 1400Z-1, 1400Z-2, and applicable federal regulations shall be entitled to an
16 enhanced credit in accordance with the provisions of this Subsection.
17 (1) The amount of the credit granted by the department shall be thirty-five
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1 percent of the amount of the investment with the credit divided in equal portions for
2 two years.
3 (2)(a) In addition to the credit cap provided for in Subsection D of this
4 Section, the total amount of credits granted under this Subsection shall not exceed
5 three million six hundred thousand dollars per year for a total program cap of seven
6 million two hundred thousand dollars per year.
7 (b) If the department does not grant the entire three million six hundred
8 thousand dollars in tax credits in any calendar year authorized pursuant to this
9 Subsection, the amount of unused tax credits shall carry forward to subsequent
10 calendar years and may be granted in any year without regard to the three million six
11 hundred thousand dollar annual cap provided for in this Subsection.
12 (c) If the department grants the entire three million six hundred
13 thousand dollars in tax credits and any additional unused rollover amount in
14 any calendar year authorized pursuant to this Subsection, the amount of any
15 unused tax credits provided for in Subsection D may also be utilized.
16 (3) To the extent that federal laws and regulations relative to opportunity
17 zones require that business revenues be derived from within the opportunity zone,
18 otherwise eligible businesses shall be exempt from the requirement that fifty percent
19 or more of sales shall come from out of state as specified in Subsection C of this
20 Section.
21 H. No credits shall be granted or reserved under this program for reservation
22 applications received by the department on or after July 1, 20252030.
23 Section 2. The provisions of this act shall be applicable to taxable periods beginning
24 on or after January 1, 2024.
25 Section 3. This Act shall become effective upon signature by the governor or, if not
26 signed by the governor, upon expiration of the time for bills to become law without signature
27 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
28 vetoed by the governor and subsequently approved by the legislature, this Act shall become
29 effective on the day following such approval.
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Danielle B. Clapinski.
DIGEST
SB 108 Original 2023 Regular Session Harris
Present law provides for the Angel Investor Tax Credit Program which authorizes a tax
credit for certain investments in a qualifying Louisiana entrepreneurial businesses as defined
under present law. The program is administered by the Department of Economic
Development.
Present law provides that applicants whose investments meet the program requirements of
the statute as well as requirements of 26 U.S.C. 1400Z-1, 1400Z-2, and applicable federal
regulations are entitled to an enhanced credit under the program.
Proposed law removes meeting the requirements of 26 U.S.C. 1400Z-2 and applicable
federal regulations in order to be eligible for the enhanced credit under the program and
otherwise retains present law.
Present law provides a $3.6 million annual credit cap for general angel investor tax credits
and an additional annual credit cap of $3.6 million for enhanced credits under the program.
If the department does not grant the entire $3.6 million in either the general or enhanced
credits in a calendar year, the amount of unused credits are rolled forward to subsequent
calendar years but remain segregated in two separate batches of money.
Proposed law authorizes the department to use any unused general credits that have rolled
over from previous years to fulfill requests for the enhanced credits when the annual $3.6
million credit cap as well as any rollover enhanced credits are already utilized.
Present law allows an exception to the general program requirements that 50% or more an
applicant's sales come from out of state when federal law or regulations related to
opportunity zones require that business revenues be derived from within the opportunity
zone.
Proposed law removes present law.
Present law provides that no credits shall be granted or reserved for the program on or after
July 1, 2025.
Proposed law extends the date of when credits can be granted or reserved from July 1, 2025,
to July 1, 2030.
Applicable to taxable periods beginning on or after January 1, 2024.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6020(G) and (H))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.