Support Louisiana’s Angel Investor Tax Bill – Call Your Reps Today!

Louisiana’s digital media incentives are well documented, but the Angel Investor Tax Incentive has the opportunity to launch Louisiana’s startup ecosystem to a whole new level.

And the Angel Bill, House Bill 597, is up for debate today!  Please help us in supporting entrepreneurs, startups, and innovation in Louisiana.  Passing the Angel Rebate Bill will help provide much needed capital to fuel those startups!  The Angel Bill is being heard this afternoon and we need your voice to be heard NOW.  Below is a listing of the State Representatives on the House Ways & Means Committee, courtesy of Save Our Startups.  They’ve included the Parishes they represent and their phone and email contact information and also attached a brief one page explanation of the Angel Bill (attached below).

Here’s how you can help.  Less than 5 minutes of your time can make a HUGE difference for our state. Please call and Email this morning!

1. Call your State Representative now letting them know you support the Angel Bill and want them to as well. Be sure to take a look at the attached one page explanation and tell them why you support the Bill (your Representative may not be on this committee, when we get this out of committee we’ll need your help for sure)
2. Email your State Representative now letting them know you support the Angel Bill and want them to as well.  Remember to tell them why its important to you and your entrepreneurial community.
3. Send a reply email back to us (please include your name in the body of the email) and we’ll submit a card of support on your behalf when the bill is heard
4. Forward this email to 3 fellow supporters of entrepreneurism, (blasting it out to your startup list would be great too) including anyone you know from other parts of the state. We need your help to mobilize and create a strong show of support from every region.

And go register to stay up to date.

The Angel Bill,  by Representative Michael Jackson, seeks to improves access to risk capital for Louisiana’s start-up companies, which has been cited as the top problem facing Louisiana startups today.  Here is a summary of the bill, provided by Save Our Startups:

Offers critical sources of capital needed for Louisiana’s entrepreneurial businesses

• From 2005 – 2009, the Louisiana Angel Tax Credit Program proved effective, with 94 companies statewide receiving over $61 million worth of angel investments from 686 investors.
• In the Capital Region, there are seven companies that have benefitted from roughly $12 million in investments.

Promotes innovation and emerging technologies

• Entrepreneurs’ emerging technologies are frequently viewed as too risky for banks and private equity firms, with angel investors often times filling the financing gap.

• Sun Microsystem Co-founder Andy Bechtolsheim made an angel investment of $100,000 to Google founders Larry Page and Sergey Brin, allowing them to move out of their dorm rooms and into the marketplace.

• Amazon, Apple, Kinko’s and Starbucks all got their starts with the help of angel investors.

Reduces the impact on the state fisc. by delaying rebate payouts for 24 months

• The proposed legislation offers a rebate of 35% of the money invested by an accredited angel investor into a certified Louisiana business.
• The measure delays any investment rebates by 24 months to shift the fiscal impact on the state general fund beyond the “cliff” years.

Incorporates safeguards

• The Louisiana Department of Economic Development certifies the eligibility of the Louisiana Entrepreneurial Business and angel investors.
• The investment in the Louisiana Entrepreneurial Business must be an investment that is at risk and not secured or guaranteed.
• Eligible rebates are capped at $1 million per year per business and $2 million dollars total per business.
• The total angel investor rebates are capped at $5 million.