Q: Since the AITC is a state program, can out-of-state investors benefit from the program?
A: AITC tax credits can only be applied against Louisiana state tax liabilities. An out-of-state investor could benefit by transferring the AITC to a Louisiana taxpayer.
Q: How many years must an investment be maintained in the LEB?
A: Three years.
Q: When will the AITC become deductible from an investor's tax liability?
A: The tax credit available in the first year shall become deductible from tax liability in the taxpayers income tax year which occurs twenty-four (24) months from the date LED certifies the amount of the investment.
Q: Are AITC applications, business plans, financial statements, etc, subject to a Public Records Request?
A: Yes. The company has the burden of defending against a Public Records Request in court. LED will notify the business of such a request.
Q: Would an investor in an LEB in calendar year 2020 automatically be included in a tax credit allocation in calendar year 2021?
A: No. The LEB must submit an AITC Reservation Application in calendar year 2021 for an investor to be eligible for AITC tax credits in calendar year 2021.
Q: Are there any limits to the amount of investments that can be made under the Angel Investor Tax Credit Program?
A: An investor may not invest more than $720,000 per year per business or more than $1.44 million per business total over the life of the program.
Q: Do convertible notes qualify as an investment under AITC?
A: LED will allow the convertible note to qualify as an investment, but only upon conversion of the instrument from a the note to an equity investment. The amount of the tax credit shall be based upon the principal balance of the note which represents the amount of money invested by the investor in the Louisiana Entrepreneurial Business.