Economic Development - Entrepreneurial Leave Tax Credit Program
Impact
The bill establishes a regulatory framework within the Department of Commerce to oversee the Entrepreneurial Leave Tax Credit Program. Employers eligible for this credit must permit employees to take at least six months of unpaid leave to pursue business activities. This policy is expected to enhance job satisfaction and loyalty, potentially leading to a more motivated workforce as employees feel supported in their entrepreneurial efforts. However, the program is capped at a maximum of $250,000 in tax credits annually, aimed at preventing excessive burden on state revenues while still promoting economic growth through entrepreneurship.
Summary
House Bill 33, titled the Entrepreneurial Leave Tax Credit Program, aims to stimulate economic development in the state by encouraging employers to adopt leave policies that support employees in establishing or expanding their own businesses. Under this program, qualified employers who allow their employees to take an unpaid entrepreneurial leave can claim a tax credit against their state income tax. This initiative is designed to foster entrepreneurship and innovation while also providing a financial incentive for businesses that support their staff in pursuing entrepreneurial ventures.
Contention
Discussions surrounding HB33 indicate potential points of contention, particularly concerning the effectiveness of such tax credits in actualizing substantial economic benefits. Critics may question whether the program sufficiently addresses the barriers faced by entrepreneurs, such as access to capital and resources beyond just time away from work. While supporters argue that this program facilitates a supportive environment for new businesses to emerge, detractors may raise concerns about the long-term sustainability of incentivizing unpaid leave, emphasizing the necessity for comprehensive support mechanisms rather than merely tax breaks.
Converts the Angel Investor Tax Credit Program to the Angel Investor Rebate Program and provides for the rebate program (EN -$20,000,000 GF RV See Note)
DOD Entrepreneurial Innovation Act This bill requires each military department to annually designate at least five eligible programs as Entrepreneurial Innovation Projects. Eligible programs are certain projects currently pursuing commercialization objectives that initially received funding for research and development through the Small Business Innovation Research Program or Small Business Technology Transfer Program. Once designated, programs must be included in future budgets and plans of the Department of Defense. Each military department must establish an advisory panel to identify and recommend eligible programs for designation.
Creates the Louisiana Entrepreneurial Assistance and Development (LEAD) Program for tax credits for venture capital investments (OR -$37,500,000 GF RV See Note)
Authorizes the Department of Economic Development to grant up to $5 million of rebates per calendar year at the rate of 35% of an investor's investment in "Louisiana Entrepreneurial Business," not to exceed $1 million per year per business and $2 million total per business and requires the Louisiana Mega-Project Development Fund to be reduced each fiscal year by an amount which equals the rebates granted. (gov sig) (REF DECREASE GF RV See Note)