Louisiana Administrative Code
Title 13 - ECONOMIC DEVELOPMENT
Part I - Financial Incentive Programs
Chapter 33 - Angel Investor Tax Credit
Section I-3302 - Definitions

Universal Citation: LA Admin Code I-3302

Current through Register Vol. 50, No. 3, March 20, 2024

A. Terms not otherwise defined in this Chapter shall have the same meaning given to them in R.S. 47:6020 unless the context clearly requires otherwise.

B. In this Chapter, the following terms shall have the meaning provided in this Section, unless the context clearly requires otherwise.

Angel Pool-a group of persons including corporations, partnerships, limited liability partnerships and limited liability corporations composed of persons meeting the qualifications of an accredited investor.

Certification-certification by the department recognizing the company as an eligible Louisiana Entrepreneurial Business.

Department-the Department of Economic Development

LEB-Louisiana Entrepreneurial Business

NAICS-North American Industrial Classification System.

Opportunity Zone-a community development program established by Congress in the Tax Cuts and Jobs Act of 2017 defined as a population census tract that is a low-income community that is designated as a qualified opportunity zone.

Professional Services-occupations requiring specialized education, knowledge, labor, judgment or are predominantly mental or intellectual in nature; and which may require the holding of a professional license. Professional services firms may engage in activities which include, but are not limited to, architecture, engineering, legal services and accounting.

Qualified Investment-a cash investment into a Louisiana Entrepreneurial Business by an Accredited Investor which may be in the form of equity, convertible debt, or other types of subordinate debt as approved by the department. Only the initial principal amount of any debt investment is eligible for the credit.

Reservation Letter-letter issued by the department provisionally indicating the dollar amount of credits which their investors may be eligible to receive if proof of qualified investment can be shown.

Subordinate Debt-

a. by its terms requires no repayment of principal for the first three years after issuance;

b. is not guaranteed by any other person or secured by any assets of the LEB or any other person; and

c. is subordinated to all indebtedness and obligations of the LEB to its general creditors.

Tax Credit Certification Letter-letter issued by the department certifying the dollar amount of Angel Investor Tax Credits earned by an investor for a particular tax year.

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6020 through 6020.4 and R.S. 36:104.

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