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 2014 automatically be included in a tax credit allocation in calendar year 2015?
A: No. The LEB must submit an AITC Reservation Application in calendar year 2015 for an investor to be eligible for AITC tax credits in calendar year 2015.
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 a convertible note to qualify as an investment but only upon conversion of the instrument from a note to an equity investment.