LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 160 HLS 21RS 546
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 28, 2021 6:31 PM Author: DEVILLIER
Dept./Agy.: Economic Development
Subject: Angel Investor Tax Credit Analyst: Greg Albrecht
TAX CREDITS OR DECREASE GF RV See Note Page 1 of 1
Provides for the eligibility for the Angel Investor Tax Credit Program
Present law provides income and franchise tax credits of 25% of investments into certified businesses. Credits are
nonrefundable but are transferable, and are disbursed in three equal annual installments. The program can issue $3.6
million of total credits per year, but unissued credit amounts rollover for issuance in subsequent years. Credits can not be
claimed for 24 months after an investment has been certified by LED. No credits shall be granted or reserved for applications
received on or after July 1, 2023.
Proposed law includes notes, convertible debt, or other similar investment instruments to the equity investment currently
provided for by the program.
Effective upon governor's signature.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 DECREASE DECREASE DECREASE $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
According to the Dept. of Economic Development, the bill appears to be allowing convertible notes and other similar
investment instruments as investments in participating businesses by participating investors. LED indicates that convertible
notes are already eligible for the program’s tax credits upon conversion to equity. The bill appears to make these
instruments eligible for tax credits prior to the conversion to equity. This may make the program somewhat more attractive
to investors, and result in some additional amount of credit claims in future years.
LED assumes this change would be applicable to investments made after the effectiveness of this bill. Associated credit
claims could not occur until 24 months after such an investment were certified by LED, and would still operate within the
program’s annual $3.6 million credit cap. Average credit claims over most of the program have averaged $2.1 million per
year, and for the last three years (FY18 - FY20), credit claims have averaged $2.3 million per year.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer


Statutes affected:
HB160 Original: 47:6020(C)(1)