Louisiana Administrative Code › Title 13 - ECONOMIC DEVELOPMENT › Part I - Financial Incentive Programs › Chapter 33 - Angel Investor Tax Credit › Section I-3307 - The Amount, Allocation and Limitations of the Angel Investor Tax Credits

Current through Register Vol. 50, No. 6, June 20, 2024
A. The following rules shall be applicable to
				qualified investments by accredited investors in Louisiana entrepreneurial
				businesses.
1. For calendar year 2011, the
				department will begin accepting applications on September 1, and for all other
				calendar years, the department will begin accepting applications on January 1.
				The allocation of credits for all years will be administered on a first come,
				first serve basis until the annual $3,600,000 cap has been reached. However, on
				the day that the cap is reached, all applications received that day will be
				treated as received at the same time and the credits remaining for allocation
				that day will be prorated.
a. Upon receipt of
				an application for the reservation of credits, the department will send the
				business a reservation letter indicating the dollar amount of credits which
				their investors are entitled to receive if proof of qualified investment can be
				shown.
b. Each business applicant
				will have to decide on their application if they are willing to accept a
				prorated credit amount should their application be received on the day the cap
				is reached. The business will also have to determine what percentage of
				proration they will accept. If the business does not indicate in their
				application a willingness to accept a prorated credit amount at the percentage
				of proration available on the day the cap is reached, their application will be
				deemed to have been received the day following the day in which the cap was
				reached.
c. Proof of a qualified
				investment must be provided to the department within 120 days from the date of
				the reservation letter. The department will accept the subscription agreement
				as required by the Securities and Exchange Commission as proof of
				investment.
d. If proof of a
				qualified investment is made within the requisite 120-day period, the
				department will issue a tax credit certification letter to the investor.
i. The tax credit certification letter will
				include the investor's name, address, Louisiana taxpayer identification number
				and the amount of the credit. The tax credit certification letter will include
				a breakdown of which years and in what amounts per year the credit will be
				claimed.
ii. The Louisiana
				Department of Revenue will receive a copy of the tax credit certification
				letter for purposes of verification of the credits.
e. If proof of qualified investment is not
				provided to the Department within the requisite 120-day period, the angel
				investor tax credits which had been reserved for that company's investors will
				be added to the remaining available annual credit cap.
f. Any returned reservation credits whose
				businesses could not provide proof of qualified investment within 120 days,
				will be allocated when available on a first come, first serve basis until the
				annual cap has been reached. However, on the day that the cap is reached, all
				applications received that day will be treated as received at the same time and
				the credits remaining for allocation that day will be prorated. Returned
				reservation credits will be made available the sooner of:
i. the day returned reservation credits
				exceed the amount of credits requested in applications in line to receive
				credits the next day; or
ii. the
				day all 120-day proof of qualified investment periods have expired.
iii. the timeline for proof of qualified
				investment will be the same 120-day period as mentioned above.
g. A business that fails to
				provide proof of qualified investment on the full reservation amount within 120
				days will not be allowed to apply for angel investor credits again for a
				three-month period. The three-month period will begin on the day following the
				end of the 120-day period for proof of qualified investment.