Investors Reap Benefits Of 2005 Angel Investor Tax Credit Program Before Year-End
(Published December 6, 2005 by the Louisiana State Office of Economic Development)
Less than 30 days remain for investors to take advantage of the Louisiana Angel Investor Tax Credit for 2005.
Tax Act 400 (HB 637) provides a 50 percent tax credit for qualified, accredited investors who invest in start-up companies that meet state requirements and are designated as eligible program participants. The tax credit is designed to be dispersed in equal portions of 10 percent over five consecutive years.
The House Bill requirements state that a business must fit the definition of a Louisiana Entrepreneurial Business, have approval to receive investments by Louisiana Economic Development (LED) and demonstrate that it will be a wealth-creating business for Louisiana.
According to LED Secretary Michael Olivier, the state legislature made this and other dramatic changes to the tax code to promote business growth by restoring investor confidence in the state.
In a recent Greater Lafayette Chamber of Commerce newsletter, Louisiana State Senator and Senate Committee on Technology Chairman Mike Michot said the Angel Investor Program recognizes Louisiana’ s promising young businesses and rewards those who support them through a generous tax program.
“ This legislation provides the incentive for true risk capital providers to get involved in rebuilding our state’s economy … it gives [the investor] the power to dictate exactly how and where a portion of their tax dollars are allocated; and it limits the maximum exposure of an investor’s capital to 50 percent … it essentially allows him or her to purchase stock in emerging companies at half its current valuation,” Michot said.
Through an expedited state process, eight companies have qualified and been approved to participate in the state’s program thus far. These companies are some of the rising stars of the Louisiana start-up business and are all raising funds under this credit program.
One of these eight companies, Network Foundation Technologies (NFT) was approved by the state for the program in mid-October and by mid-November moved into Louisiana Tech University’s new Enterprise Center, an on-campus business incubator. Co-founded by Tech alumnus Marcus Morton and Tech professor Mike O’Neal, NFT is a software company that has developed a product that substantially lowers the cost of live online broadcasting, allowing 24/7 “television style” computer internet broadcast. Les Guice, vice president for research and development at the Enterprise Center, describes NFT as a large start-up with several employees. “They have strong, experienced leadership that is well connected in the industry,” he said.
Qualified investors have a limited window of opportunity in which to secure the benefits of the Louisiana Angel Investor Tax Credit for 2005. Each applicant must provide a representation letter and business plan for consideration. For more information and a list of qualified companies, contact Craig Hartberg of LED at email@example.com or 225.342.5882.
The original version of this release can be found here.
About Network Foundation Technologies:
Network Foundation Technologies, LLC is a privately held company focused on the development of technologies that provide the foundation for Internet-based broadcast networks.