Tax News

CCH (cch.taxgroup.com) reports:

Under the new Mentor-Protege Tax Credit Program to be implemented and administered by the Louisiana Department of Economic Development, a qualifying business mentor that fulfills the terms of a written mentor-protege agreement may be granted a refundable credit against its Louisiana corporation income, personal income, or corporation franchise tax liability for providing professional guidance and support to a qualifying business protege to facilitate the protege's own development and growth.
The credit amount, to be established by the Department and contained in the above agreement, may not exceed $50,000 per agreement. The credit is deemed earned on the date of the applicable investment and may be claimed in the tax year in which the investment is made.
Among other provisions, the Department-approved agreement between the mentor and the protege must include an assessment of the protege's needs, a description of the specific assistance that the mentor will provide to address those needs, the term of the agreement, and the parties' goals and objectives.
This Program is effective for all income tax years beginning after 2006, and all franchise tax years beginning after 2007. However, the Program expires on December 31, 2011.
Act 356 (H.B. 926), Laws 2007, effective as noted above.