2009 Louisiana Laws TITLE 47 Revenue and taxation :: RS 47:6020.2 Angel investor tax credit; amount; duration; forfeit

§6020.2.  Angel Investor Tax Credit; amount; duration; forfeit

A.(1)  Except as provided in Subsection B of this Section, the taxpayer may earn and apply for and, if qualified, be granted a refundable credit on any income or corporation franchise tax liability owed to the state by the taxpayer seeking to claim the credit, in the amount approved by the secretary of the Department of Economic Development for the amount of money invested by the taxpayer in the Louisiana Entrepreneurial Business, which shall not exceed one million dollars per year per business and two million dollars total per business.  Except as otherwise provided in this Paragraph, the refundable credit shall be allowed against the income tax for the taxable period in which the credit is earned and the franchise tax for the taxable period following the period in which the credit is earned.  However, credits earned on or before December 31, 2005, shall not be allowed until the income tax period beginning January 1, 2006, and the franchise tax due January 1, 2007.

(2)(a)  The credits approved by the Department of Economic Development shall be granted at the rate of fifty percent of the amount of money invested by the taxpayer in the Louisiana Entrepreneurial Business, with the credit divided in equal portions for five years, subject to the limitations provided for in Paragraph (1) of this Subsection.

(b)  The total angel investor tax credits granted by the Department of Economic Development in any calendar year shall not exceed five million dollars.

(c)  After certifying the eligibility of the Louisiana Entrepreneurial Business and the amount of the investment, the Department of Economic Development shall issue a tax credit certificate, a copy of which is to be attached to the tax return of the angel investor.  The tax credit certificate shall contain the taxpayer's name, address, tax identification number, the amount of credit, the name of the qualifying business, and other information required by the Department of Revenue.  The tax credit certificate, unless rescinded by the Department of Economic Development, shall be accepted by the Department of Revenue as proof of the credit.

(d)  The Department of Economic Development shall maintain a list of the tax credit certificates issued.

(3)(a)  All entities taxed as corporations for Louisiana income or corporation franchise tax purposes shall claim any credit allowed under this Section on their corporation income and corporation franchise tax return.

(b)  Individuals shall claim any credit allowed under this Section on their individual income tax return.

(c)  Estates or trusts shall claim any credit allowed under this Section on their fiduciary income tax returns.

(d)  Entities not taxed as corporations shall claim any credit allowed under this Section on the returns of the partners or members as follows:

(i)  Corporate partners or members shall claim their share of the credit on their corporation income or corporation franchise tax returns.

(ii)  Individual partners or members shall claim their share of the credit on their individual income tax returns.

(iii)  Partners or members that are estates or trusts shall claim their share of the credit on their fiduciary income tax returns.

B.  A tax credit granted pursuant to the Angel Investor Tax Credit Program shall expire and have no value or effect on tax liability beginning with the eleventh tax year after the tax year in which it was originally granted.

Acts 2005, No. 400, §1; Acts 2007, No. 445, §1.

NOTE:  Acts 2005, No. 400, provides that the provisions of the Act "shall become effective for all income tax and franchise tax years beginning on or after January 1, 2005.  However, this Act shall become null and void on December 31, 2009."