Louisiana Senate Bill SB124

Louisiana 2019 Regular Session

• Introduced: 3/27/19
• Refer: 3/27/19
• Refer: 4/8/19

Caption

Provides relative to the Angel Investor Tax Credit Program. (gov sig) (OR -$2,400,000 GF RV See Note)

Impact

The passage of SB124 is expected to have positive implications for the entrepreneurial landscape in Louisiana. By enhancing the financial incentives for investors, the bill could lead to increased funding for startups and small businesses, thereby fostering innovation and job creation. Furthermore, the adjustments to the tax credit usage timeline may facilitate quicker economic returns for investors, ultimately enriching the state's economy. However, there are concerns regarding the sustainability of such tax incentives and their long-term impact on state revenue.

Summary

Senate Bill 124 modifies the existing Angel Investor Tax Credit Program in Louisiana, aiming to encourage investments in local entrepreneurial businesses. The bill increases the annual program cap from $3.6 million to $5 million and raises the tax credit from 25% to 30% of qualified investments. Additionally, it reduces the period over which the credits can be utilized from three years to two years, allowing more immediate tax relief for investors. These changes are intended to stimulate economic growth and support the development of small businesses in the state.

Sentiment

The sentiment surrounding SB124 appears to be predominantly supportive, particularly among business leaders and proponents of entrepreneurship, who view the increased tax incentives as a vital mechanism to enhance investment in local businesses. However, some critics might argue that expansive tax incentives could lead to budgetary constraints or uneven benefits across different business sectors. The ongoing discussion suggests a general optimism about the bill's potential to invigorate the local economy while balancing the need for sustainable fiscal policies.

Contention

Notable points of contention include the effectiveness and necessity of increasing tax credits at a time when state revenue generation may be a pressing concern. Opponents may raise questions regarding accountability and transparency in how tax benefits are allocated, especially if they feel that larger, more established businesses may disproportionately benefit from such programs, leaving out smaller startups. The longer-term implications of these tax credits on the state budget and economic inequality may also be focal points for discussion as the bill progresses.