La. Admin. Code tit. 19 § II-509

Current through Register Vol. 50, No. 5, May 20, 2024

Section II-509 - The Mentor-Protege Tax Credit

A. The following mentor-protege tax credit rules shall be applicable to mentors who enter into a mentor-protege agreement.

1. The mentor may earn and apply for and, if qualified, be granted a refundable credit on any income or corporation franchise tax liability owed to the state by the mentor. The amount of the refundable credit shall be established by the Department of Economic Development and contained in the mentor-protege agreement.

2. The amount of the tax credits granted pursuant to the provisions of this Part shall not exceed $50,000 per mentor-protege agreement.

3. The mentor may participate in no more than two mentor-protege agreements in any one tax year without the prior written approval of the secretary.

4. The mentor-protege tax credits granted by the Department of Economic Development in any fiscal year shall not exceed $1,000,000.

5. The mentor-protege tax credit shall be deemed earned on the date of the investment and may be claimed in the tax year in which the investment is made. The credit earned by an individual shall be claimed on their individual income tax return, the credit earned by an S-corporation shall be claimed as provided by R.S. 47:1675(G), the credit earned by a corporation other than an S-corporation shall be claimed on the corporation income and franchise tax return of the corporation, and the credit earned by a pass through entity shall be claimed on the income or franchise tax returns of the members or partners as provided by R.S. 47:1675(F).

6. A tax credit granted pursuant to this Part shall expire and have no value or effect on tax liability beginning with the twenty-first tax year after the tax year in which it was originally earned, applied for, and granted.

7. In the event it is subsequently determined by the Department of Economic Development that the mentor has not complied with the requirements of the mentor-protege agreement, or that the mentor was otherwise not qualified to earn a tax credit pursuant to this Part, any tax credits previously earned and applied against the mentor's tax liability shall be recaptured and added to the tax liability of the mentor for the year that such determination is made.

8. The secretary shall provide the mentor with all necessary and appropriate tax credit certificates as provided by statute and as shall assist the Department of Revenue in its determination of applicability of the credit

La. Admin. Code tit. 19, § II-509

Promulgated by the Department of Economic Development, Office of the Secretary, Division of Small and Emerging Business Development, LR 26:1574 (August 2000), amended by the Department of Economic Development, Office of Business Development, LR 29:546 (April 2003), LR 30:757 (April 2004), LR 34:604 (April 2008).

AUTHORITY NOTE: Promulgated in accordance with R.S. 51: 942