Overview

The Angel Investor Tax Credit Program Act of 2005 (Act 400) enhances the Louisiana entrepreneurial business environment by rewarding qualified individuals for investing in early stage, wealth-creating businesses.

Benefits

Provides Louisiana income or corporation franchise tax credits up to 50% of the money invested in a business certified by Louisiana Economic Development as a Louisiana Entrepreneurial Business. Total tax credits cannot exceed $5 million.

Review a sample calculation of benefits in the Related Content section to see how this incentive could apply to your business.

Eligibility

To be eligible for Angel Investor Tax Credits, both the Louisiana Entrepreneurial Business and the investor must meet the following specific, certification requirements:

Louisiana Entrepreneurial Business

• a fully developed business plan
• the principal business operations are located in Louisiana including Louisiana as the primary place of employment for the employees of the business
• the business operates as a person defined as an "employer" within the meaning of the state's Quality Jobs Rules
• the number of jobs to be created, and the title and salary ranges of those jobs
• 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 or progression through which more than 50 percent of its sales will be derived from outside Louisiana
• the amount of investment requested and a Source and Use statement showing that the investment funds will be used for capital improvements, plant and equipment, research and development, working capital for the business or other business activity approved by LED
• the Louisiana Tax Identification Number of the business

Accredited Investor

• the investment in the Louisiana Entrepreneurial Business must be an investment that is at risk and not secured or guaranteed
• the funds invested by the applicant cannot have been raised as a result of other Louisiana tax incentive programs, funds pooled or organized through capital placement agreements or as the result of illegal activity
• the angel investor, as defined, cannot be the principal owner of the business who is involved in the operation of the business as a full-time professional activity
• the investment in the Louisiana Entrepreneurial Business by the applicant must be maintained for three years
• an Accredited Investor shall be defined as:
  1. an Angel Pool, all of whose participants shall be Accredited Investors
  2. a natural person who has individual or joint net worth that exceeds $1 million at the time of the investment
  3. a natural person who has individual income exceeding $200,000, or joint income exceeding $300,000

For comprehensive rules and details on eligibility, please review Related Content below and contact the appropriate administrator.

How to Apply

Interested parties should contact Craig Hartberg at (225) 342-5882 for information on the application process.

Related Content

• Angel Investor Tax Credit One-Sheet
• Angel Investor Tax Credit Rules
• Sample Calculation of Benefits

Administration

This program is administered by Louisiana Economic Development.

For information regarding Angel Investor Tax Credits, contact the program administrator:

Craig Hartberg
225.342.5882
hartberg@la.gov