FOR IMMEDIATE RELEASE: CONTACT: John W. Munsell, CEO Bizzuka, Inc. Lafayette: 337-216-4423 x101 jmunsell@bizzuka.com http://www.bizzuka.com Bizzuka Becomes First Company to Qualify for State of Louisiana’s Angel Investor Tax Credit Program Act of 2005
Tax Act 400 provides 50 percent tax credit for angel investors when they make investments into startup Louisiana entrepreneurial businesses
LAFAYETTE, LA 10/31/05 – Bizzuka, Inc. (www.bizzuka.com), a provider of component-based Web and intranet-based solutions, today announced that it has become the first company to qualify for the Louisiana Angel Investor Tax Credit Program, Tax Act 400 (HB 627), which provides investors with a 50 percent tax credit when they invest in emerging Louisiana businesses.
Passed during the recent legislative session, the Louisiana Angel Investor Tax Credit Program allows qualified, accredited investors to receive a 50 percent tax credit, dispersed in equal portions of 10 percent over 5 years, when they make high risk investments into startup Louisiana entrepreneurial businesses. The statute was designed to create a healthy business environment in Louisiana by attracting ready sources of capital with the long term goal of expanding the state’s economy and creating a pool of quality jobs. “The Louisiana Angel Investor Tax Credit Program recognizes promising young businesses like Bizzuka throughout the state, and rewards those who support them through a generous tax program,” said Louisiana State Senator Mike Michot, Chairman of the Senate Select Committee on Technology. “We are excited that a Lafayette based technology company is the first to be certified under this tax credit which is particularly timely in light of the recent devastation we’ve suffered at the hands of two hurricanes this year. “This legislation provides the incentive for true risk capital providers to get involved in rebuilding our state’s economy. From the investors’ perspective, it gives him or her the power to dictate exactly how and where a portion of their tax dollars are allocated; it limits the maximum exposure of an investor’s capital to 50 percent -- a benefit that no company on the New York Stock Exchange or NASDAQ can match; and considering the investor’s ‘at-risk’ capital as the basis for investment, it essentially allows him or her to purchase stock in emerging companies at half its current valuation.” Bizzuka qualified for the program by meeting the bill’s requirements stipulating that a business must fit the definition of a Louisiana Entrepreneurial Business, must have received approval to receive investment by the Department of Economic Development and can demonstrate that it will be a wealth-creating business for Louisiana by having at least 50 percent of its sales come from outside the state. Businesses engaged primarily in retail sales, real estate, professional services, gaming, natural resource extraction or exploration and financial services do not qualify. “There are tremendous benefits that come from this bill, which is why we were such an early and strong advocate,” said John Munsell, CEO of Bizzuka. “While we have experienced growth in excess of 30% in each of the past nine quarters, we are still considered ‘early stage’ by the
venture capital community. Angel investors are our only option for funding this rapid growth, and there are many other companies just like us out there.” Eligible investors are those who meet the definition of an “Accredited Investor” by the SEC, maintain their investment for 3 years and are not principal owners or related to the principal owner. Proceeds from investors must be used by the companies on capital improvements, plant equipment, research and development and working capital. Proceeds cannot be used to pay dividends, repay shareholder’s loans, redeem shares or repay debt. About Bizzuka Bizzuka has created OnDeCC, (On Demand Content and Components), a web-based content management system that is dynamic and robust, yet easy-to-use platform that gives small to medium sized companies affordable access to the sophisticated features and capabilities of systems utilized by Fortune 500 companies. The product also allows clients to take advantage of software upgrades immediately with no additional cost. Since relocating its Tampa based operations to Lafayette, Louisiana in 2003, Bizzuka has quadrupled in size and was named a finalist in the New Orleans City Business Innovator of the Year Awards.
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