Angel Investor Tax Credit

Provides a 25% tax credit on investments by accredited investors who invest in businesses certified by Louisiana Economic Development as Louisiana Entrepreneurial Businesses (LEB). Provides an enhanced tax credit on investments by accredited investors who invest in Louisiana Entrepreneurial Businesses located in qualified Opportunity Zones or parishes (counties) with a population of less than 50,000. To view an interactive map of Louisiana Opportunity Zones, click here . Investors can invest $720,000 per business per year and $1.44 million per business over the life of the program. Provides a 25% tax credit on investments by accredited investors who invest in businesses certified by Louisiana Economic Development as Louisiana Entrepreneurial Businesses (LEB). Provides an enhanced tax credit on investments by accredited investors who invest in Louisiana Entrepreneurial Businesses located in qualified Opportunity Zones or parishes (counties) with a population of less than 50,000. To view an interactive map of Louisiana Opportunity Zones, click here . Investors can invest $720,000 per business per year and $1.44 million per business over the life of the program. Eligibility The incentive is available to Louisiana businesses that are primarily engaged in energy and process and services, life sciences, or technology. A qualified investment may be in the form of equity, convertible debt, or other types of subordinate debt as approved by the department. Subordinate debt by its terms requires no repayment of principal for the first 3 years after issuance, is not guaranteed by any other person or secured by any assets of the LEB or any other person and is subordinated to all indebtedness and obligations of the LEB to its general creditors. The no repayment requirement for the first 3 years must be clearly indicated in each promissory note or convertible note agreement for all debt instruments. Qualifying uses of investment funds include: Capital improvements, plant equipment, research & development and working capital Non-eligible uses of investment funds include: Pay dividends, redeem shares, repay debt and repay shareholders’ loans What qualifies as an LEB? The principal business operations are in Louisiana, with Louisiana as the primary place of employment for the employees of the business. The business must possess a fully developed business plan that includes all appropriate long and short term forecasts and contingencies of business operations, including research and and cash flow projections, and details of expenditure of angel investor funding. The business must have a Louisiana Tax Identification Number. The business has either gross annual sales of less than $10 million or a business net worth of less than $2 million. The business employs 50 or fewer full-time employees. The business must demonstrate that it will create quality jobs in the state. The business is not primarily engaged in the business of retail sales, real estate, professional services, gaming or gambling, natural resource extraction or exploration, or financial services including venture capital funds. The business has a plan of progression through which more than 50% of its sales will be derived from outside of Louisiana. Who qualifies as an Accredited Investor? An Accredited Investor shall meet the definition established by Rule 501 in Regulation D promulgated under the Securities Act of 1933. Program Statutes and Rules: All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register. View the Angel Investor Tax Credit Statutes View the Angel Investor Tax Credit Rules (Go to Part 1, Chapter 33) Contact Us Eligibility Scenarios