HLS 11RS-167 ORIGINAL
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are additions.
Regular Session, 2011
HOUSE BILL NO. 348
BY REPRESENTATIVE LEGER
TAX CREDITS: Increases the amount of the tax credit for the rehabilitation of certain
residential structures and extends the taxable periods in which the tax credit applies
AN ACT1
To amend and reenact Section 2 of Act No. 479 of the 2005 Regular Session of the2
Legislature, as amended by Act No. 188 of the 2007 Regular Session of the3
Legislature and R.S. 47:297.6(A)(1), relative to individual income tax credits; to4
decrease the amount of rehabilitation costs which qualify for the tax credit; to5
increase the amount of the tax credit for the rehabilitation of certain residential6
structures; to extend the taxable periods in which the tax credit shall be applicable;7
to provide for an effective date; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. Section 2 of Act No. 479 of the 2005 Regular Session of the Legislature,10
as amended by Act No. 188 of the 2007 Regular Session of the Legislature is hereby11
amended and reenacted to read as follows:12
Section 2. This Act shall become effective and credit may be given for all13
taxable years beginning after December 31, 2005, until and including the tax years14
beginning on or before December 31, 2012 January 1, 2016.15
Section 2. R.S. 47:297.6(A)(1) is hereby amended and reenacted to read as follows:16
§297.6. Reduction to tax due; rehabilitation of residential structures17
A.(1) There shall be a credit against individual income tax liability due under18
this Title for the amount of eligible costs and expenses incurred during the19
rehabilitation of an owner-occupied residential or owner-occupied mixed use20 HLS 11RS-167 ORIGINAL
HB NO. 348
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structure located in a National Register Historic District, a local historic district, a1
Main Street District, a cultural products district, or a downtown development district,2
or such owner-occupied residential structure which has been listed or is eligible for3
listing on the National Register, or such structure which has been certified by the4
State Historic Preservation Office as contributing to the historical significance of the5
district, or a vacant and blighted owner-occupied residential structure located6
anywhere in the state that is at least fifty years old. The tax credit authorized7
pursuant to this Section shall be limited to one credit per structure rehabilitated. The8
total credit shall not exceed twenty-five thousand dollars per structure. In order to9
qualify for that credit, the rehabilitation costs of for the structure must exceed twenty10
ten thousand dollars.11
(a) If the credit is for the rehabilitation of an owner-occupied residential12
structure, the credit shall be twenty-five percent of the eligible costs and expenses13
of the rehabilitation. The credit shall be calculated using the following percentages14
of the eligible costs and expenses of the rehabilitation based on the adjusted gross15
income of the owner-occupant. If the residential structure is owned and occupied by16
two or more individuals, the applicable percentage shall be based on the sum of the17
adjusted gross incomes of all owner-occupants who contribute to the rehabilitation,18
and the credit will be divided between the owner-occupants in proportion to their19
contribution to the eligible costs and expenses. , unless they agree to an alternate20
division as follows:21
(a) If the adjusted gross income is less than or equal to fifty thousand dollars,22
the credit shall be twenty-five percent of the eligible costs and expenses of the23
rehabilitation.24
(b) If the adjusted gross income is greater than fifty thousand dollars and less25
than or equal to seventy-five thousand dollars, the credit shall be twenty percent of26
the eligible costs and expenses of the rehabilitation.27 HLS 11RS-167 ORIGINAL
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(c) If the adjusted gross income is greater than seventy-five thousand dollars1
and less than or equal to one hundred thousand dollars, the credit shall be fifteen2
percent of the eligible costs and expenses of the rehabilitation.3
(d) If the adjusted gross income is greater than one hundred thousand dollars,4
the credit is only available (b) If the credit is for the rehabilitation of a vacant and5
blighted owner-occupied residential structure that is at least fifty years old, and the6
credit shall be ten fifty percent of the eligible costs and expenses of the7
rehabilitation.8
* * *9
Section 3. This Act shall become effective upon signature by the governor or, if not10
signed by the governor, upon expiration of the time for bills to become law without signature11
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If12
vetoed by the governor and subsequently approved by the legislature, this Act shall become13
effective on the day following such approval.14
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Leger HB No. 348
Abstract: Removes the income schedule for calculation of the credit, increases the
percentage for eligible costs for the rehabilitation of vacant and blighted owner-
occupied structures from 10% to 50%, and decreases the amount of rehabilitation
costs which qualify for the credit from $20,000 to $10,000. Extends applicability of
this credit from tax years beginning on or before Dec. 31, 2012, to tax years
beginning before Jan. 1, 2016.
Present law authorizes an individual income tax credit for the amount of eligible costs and
expenses incurred during the rehabilitation of an owner-occupied residential or owner-
occupied mixed use structure located in a National Register Historic District, a local historic
district, a Main Street District, a cultural products district, or a downtown development
district, or such owner-occupied residential structure which has been listed or is eligible for
listing on the National Register, or such structure which has been certified as contributing
to the historical significance of the district, or a vacant and blighted owner-occupied
residential structure that is at least 50 years old.
Proposed law retains present law but clarifies that a vacant and blighted owner-occupied
residential structure may be located anywhere in this state. HLS 11RS-167 ORIGINAL
HB NO. 348
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Present law limits taxpayers to one credit per rehabilitated structure. Further provides that
the total credit shall not exceed $25,000 per structure. In order to qualify for the credit,
requires rehabilitation costs for the structure to exceed $20,000.
Proposed law retains present law but decreases the required rehabilitation costs in order to
qualify for the credit from $20,000 to $10,000.
Present law requires the credit to be calculated using percentages of the eligible costs and
expenses of the rehabilitation based on the adjusted gross income of the owner-occupant.
If the residential structure is owned and occupied by two or more individuals, the credit shall
be divided between the owner-occupants in proportion to their contribution to the eligible
costs and expenses, unless they agree to an alternate division as follows:
(1)If the adjusted gross income is less than or equal to $50,000, the credit shall be 25%
of the eligible costs and expenses of the rehabilitation.
(2)If the adjusted gross income is greater than $50,000 and less than or equal to
$75,000, the credit shall be 20% of the eligible costs and expenses of the
rehabilitation.
(3)If the adjusted gross income is greater than $75,000 and less than or equal to
$100,000, the credit shall be 15% of the eligible costs and expenses of the
rehabilitation.
(4)If the adjusted gross income is greater than $100,000, the credit is only available for
the rehabilitation of a vacant and blighted owner-occupied residential structure that
is at least 50 years old, and the credit shall be 10% of the eligible costs and expenses
of the rehabilitation.
Proposed law changes present law by removing the income provisions for calculating the
credit.
Proposed law establishes the amount of the credit for the rehabilitation of an owner-occupied
residential structure at 25% of the eligible costs and expenses. Further provides that multiple
owners shall divide the credit in proportion to their contribution to the eligible costs and
expenses for rehabilitation.
Proposed law changes present law as it relates to the rehabilitation of vacant and blighted
owner-occupied residential structures by deleting the income requirement and increasing the
percentage of the eligible costs and expenses of rehabilitation for which the credit applies
from 10% to 50%.
Present law requires eligible structures to be owner-occupied residential property.
Present law provides that the maximum amount of tax credits allowed to be granted in any
calendar year shall not exceed $10 million. Credit shall be granted on a first-come, first-
served basis.
Proposed law retains present law.
Present law (§2 of Act No. 479 of the 2005 R.S., as amended by Act No. 188 of the 2007
R.S) provides that the provisions of present law shall be applicable until and including the
tax years beginning on or before Dec. 31, 2012.
Proposed law extends applicability of this tax credit from tax years beginning on or before
Dec. 31, 2012, to tax years beginning before Jan. 1, 2016. HLS 11RS-167 ORIGINAL
HB NO. 348
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Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends §2 of Act No. 479 of the 2005 R.S., as amended by Act No. 188 of the 2007 R.S.,
and R.S. 47:297.6(A)(1))