Louisiana House Bill HB269

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11

Caption

Provides for the taxable periods in which angel investor tax credits may be granted and provides relative to the amount of the tax credit

Impact

The implementation of this bill is expected to bolster economic development within the state by incentivizing investments in local businesses. By providing substantial tax relief for angel investors, HB 269 aims to attract capital to foster innovation and entrepreneurship in Louisiana. However, the bill also requires thorough monitoring of businesses benefiting from the credits, including conditions for recapture and repayment of credits if businesses do not meet certain criteria. The potential economic upturn hinges upon compliance with these criteria to ensure that the intended benefits materialize for the state and its business landscape.

Summary

House Bill 269 pertains to the establishment and administration of the Angel Investor Tax Credit Program in Louisiana. This bill allows qualifying individuals and entities to apply for refundable tax credits on their state income or corporation franchise tax liabilities based on their investments in Louisiana Entrepreneurial Businesses. Specifically, the program was structured to offer tax credits that would decrease annually from 50% in 2012 to 30% by 2016, with a $5 million total cap on credits granted per year. Furthermore, the bill creates a systematic process managed by the Department of Economic Development for certifying eligible investments and ensuring compliance with the program's guidelines.

Sentiment

The sentiment surrounding HB 269 appears to be generally positive, especially among business advocates who support enabling mechanisms for local entrepreneurship. Proponents argue that the tax credits will drive significant investment and stimulate new ventures in the state. However, some criticisms have emerged regarding the potential for misuse or fraudulent claims, prompting concern about accountability within the program and the necessity for rigorous enforcement measures to prevent abuse of the tax credit systems.

Contention

Notable contention around the bill focuses on the balance between fostering investment and ensuring stringent oversight. Proponents emphasize the economic benefits of allowing angel investors to contribute to Louisiana's entrepreneurial ecosystem, whereas opponents highlight risks related to fraud and the sustainability of funding for the initiative. This debate emphasizes the need for effective reporting and governance measures to capitalize on the advantages of the Angel Investor Tax Credit Program while mitigating associated risks.