§3084. Definitions

(1) "Applicant entity" means an entity applying to become a LCDFI.

(2) "CDFI" means an entity that is designated as a Community Development Financial Institution by the United States Department of the Treasury's Community Development Financial Institutions Fund.

(3) "Certified capital" means an investment pursuant to R.S. 51:3085 into a LCDFI.

(4) "Commissioner" means the commissioner of the Louisiana Office of Financial Institutions.

(5) "Equity in a qualified Louisiana business" is defined as an interest that in substance and in form is either:

(a) Common stock, preferred stock, or an equivalent ownership interest in the limited liability company, partnership, or other entity.

(b) A loan with a stated maturity of not less than five years which provides for conversion into equity at a future date or has at least one of the following equity-like features, such as flexible repayment terms, longer than normal maturities, below market interest rates, or being nonrecourse in nature. The commissioner shall promulgate rules to determine what constitutes equity features for the purpose of this definition.

(c) Notwithstanding any other provision of this Chapter to the contrary, the percentage of equity interest in a qualified Louisiana business.

(6) "Investment for the purposes of earning these tax credits" means a transaction that, in substance and in form, is the investment of cash in exchange for either:

(a) Common stock, preferred stock, or an equivalent ownership interest in a LCDFI.

(b) A loan receivable or note receivable from a LCDFI which has a stated final maturity date of not less than five years from the origination date of the loan or note and is repaid in a manner which results in the loan or note being fully repaid or otherwise satisfied in equal amounts over the stated maturity of the loan or note.

(7) "Investment date" means, with respect to each investment pool, the date on which the investment pool transaction closes.

(8) "Investment pool" means any certified capital raised in a calendar year for which tax credits are granted under this Chapter.

(9) "Louisiana Community Development Financial Institution" or "LCDFI" means any partnership, corporation, or other legal entity, whether organized on a profit or nonprofit basis, that has as its primary business activity the investment of cash in such a manner as to acquire equity in or provide financing assistance to qualified Louisiana businesses in low-income communities that are in need of capital for survival, expansion, new product development, or similar business purposes and is certified as a CDFI by the United States Department of the Treasury to be eligible for the tax credit provided in this Chapter.

(10) "Low-income community" means any of the following:

(a) Any census tract which has a poverty rate of at least twenty percent or in which the median income of that census tract is eighty percent or less of the statewide median income as determined by the United States Census Bureau; or

(b) Any medically underserved area as designated by the United States Department of Health and Human Services, to the extent the qualified Louisiana business assists in the providing of, or delivery of, health care services, prescription drugs, or medical equipment; or

(c) Any location to which a Louisiana business has been temporarily displaced as a result of a natural disaster.

(d) For purposes of tax credits taken against income and corporation franchise taxes, any community located in an area with respect to which a major disaster has been declared by the president under Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of Hurricane Katrina or Rita.

(11) "Minimum capitalization" means five hundred thousand dollars of tangible equity that has been raised from sources other than the state of Louisiana.

(12) "Qualified investment" means an investment that in substance and in form furthers economic development within Louisiana as defined by rule and is either:

(a) A transaction that consists of the investment of cash and results in the acquisition of equity in a qualified Louisiana business; or

(b) Financing assistance provided in cash to a qualified Louisiana business by a LCDFI.

(13) "Qualified Louisiana business" means:

(a) A business that at the time of investment, or as the direct result of an investment pursuant to this Chapter, operates primarily in Louisiana or performs substantially all of its production in Louisiana, or is headquartered in Louisiana with a substantial portion of its assets located in Louisiana, which is in need of capital and is involved in commerce for the purpose of retail, or the manufacturing, processing, or assembling of products, or conducting research and development, or providing services, provided that at least eighty percent of the total employees of such business shall be domiciled in the state of Louisiana and that at least eighty percent of the payroll of such business shall be paid to such employees.

(b) A Louisiana-based nonprofit corporation which furthers community development and which is in good standing with the Louisiana secretary of state.

(c) Loans to medical service professionals, professional medical corporations, or buildings constructed to house the medical practices of a medical service professional or professional medical corporation, provided that the medical practice is located in a low-income community or a medically underserved area as determined by the United States Department of Health and Human Services.

(d) Any qualified Louisiana business that has been temporarily displaced as a result of a natural disaster, regardless of where the temporary location is based.

(14) "Tax credit" means any or all of the following: personal income tax credits, corporate income tax credits, and corporate franchise tax credits.

(15) "Total certified capital under management" means, for purposes of investment limits pursuant to R.S. 51:3087(G):

(a) GAAP capital shall include common stock, preferred stock, general partnership interests, limited partnership interests, surplus, and other equivalent interests, all of which shall be exchanged for cash and available for investment in qualified investments; undivided profits or loss which shall be reduced by a fully funded loan loss reserve; contingency or other capital reserves and minority interests; reduced by all organization costs.

(b) Qualified non-GAAP capital shall include the portion of debentures, notes, or any other quasi-equity or debt instruments with a maturity of not less than five years which is available for investment in qualified investments.

Acts 2005, No. 491, §1, eff. July 12, 2005; Acts 2005, 1st Ex. Sess., No. 58, §2, eff. Dec. 6, 2005; Acts 2007, No. 345, §2, eff. June 30, 2007.