July 11th, 2011
Louisiana lawmakers voted on Tuesday to re-establish a lucrative investor tax credit that state business leaders say is needed to spark investment interest in startup activity, bringing a two year fight to return the incentive to a close finish.
The Louisiana House of Representative unanimously approved the Angel Investor Tax Credit program, which will provide for a 35 percent transferable tax credit for angel investments until the program sunsets on July 1, 2015.
From 2005 to 2009, Louisiana private investors benefited from a tax credit that allowed them to recover as much as 50 percent of their investments in in-state startups. Efforts to renew the tax credit fizzled last year and New Orleans area startups and investors worried lawmakers would sideline the incentive again this year in light of the budget shortfall.
Though the final language of the bill keeps the incentive in the form of a tax credit as opposed to the tax rebate Rep. Michael Jackson, I-Baton Rouge, who authored the program, proposed, the local business community applauded passage of the bill.
“The passage of this legislation is great news for the local start-up and entrepreneurial community,” said Michael Hecht, president and CEO of regional economic development organization Greater New Orleans Inc. in a statement. “Angel investors often fill the financing gap that entrepreneurs face when launching new business ventures. Reinstatement of Angel Investor Tax Credit Program will promote entrepreneurship for emerging technologies across Southeast Louisiana.”
The bill now moves to Gov. Bob Jindal’s desk for final approval.
Source: New Orleans City Business
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