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ANGEL INVESTOR TAX CREDIT

ANGEL INVESTOR TAX CREDIT. October 28, 2009. ANGEL INVESTOR TAX CREDIT PROGRAM. What is it? State tax credit program to reward qualified, individual investors for investing in early stage, wealth-creating Louisiana businesses Benefits:

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ANGEL INVESTOR TAX CREDIT

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  1. ANGEL INVESTOR TAX CREDIT October 28, 2009

  2. ANGEL INVESTOR TAX CREDIT PROGRAM What is it? • State tax credit program to reward qualified, individual investors for investing in early stage, wealth-creating Louisiana businesses Benefits: • Accredited angel investors receive a refundable Louisiana. income tax credit up to 50% of investment in a business certified by LED as a Louisiana Entrepreneurial Business • Tax credit realized equally over five-year period

  3. Requirements for Louisiana Entrepreneurial Business • Fully developed business plan, including Source & Use statement for the invested funds • Principal business operations, including primary place of employment, in Louisiana • Not engaged in retail sales, real estate, professional services, gaming or gambling, natural resource extraction or exploration, or financial services • Over 50% of sales derived from outside Louisiana • Registered and in “good standing” with Secretary of State • Louisiana Tax Identification Number

  4. Angel Investor Requirements • Person with individual/joint net worth exceeding $1 million at time of investment • Individual income over $200,000 or joint income with spouse over $300,000 for last 2 years • Angel Pool (LLC or LLP) comprised only of Accredited Investors • Persons including corporations, partnerships, LLCs, LLPs, composed of Accredited Investors provided each person’s share of tax credit does not exceed share of profits of the Louisiana Entrepreneurial Business

  5. ANGEL INVESTOR TAX CREDIT PROGRAM • Origin – Regular Session 2005. Amended Regular Session 2007 (refundable amendment). • Sunsets 12/31/2009. • Status – Through tax year 2008: • 65 Louisiana Entrepreneurial Businesses • 36 LEBs received investment • $43.5 million invested • $17.1 million tax credit issued • Over 200 angel investors participated

  6. AITCP DATA THROUGH 2008

  7. Thank-you LouisianaEconomicDevelopment.com Information in this presentation is a synopsis of the programs described. Statutory and rule requirements must be followed for all programs.

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