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: Do convertible notes qualify as an investment under AITC?
A: Yes. A Qualified Investment is defined as: 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. *The provisions of the 2021 rule changes regarding a Qualified Investment shall apply to applications filed after the date of promulgation, detailed in the Louisiana Register published on August 20,2021. *