HLS 11RS-318 ORIGINAL
Page 1 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2011
HOUSE BILL NO. 45
BY REPRESENTATIVE HENRY
TAX CREDITS: Provides for an income and corporation franchise tax credit for ad valorem
taxes paid by certain barge line, towing, and other water transportation companies
AN ACT1
To enact R.S. 47:6038, relative to tax credits; to provide for an income and corporation2
franchise tax credit for certain amounts of ad valorem taxes paid by certain barge3
line, towing, and other water transportation companies; and to provide for related4
matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:6038 is hereby enacted to read as follows: 7
ยง6038. Credit for property taxes paid by certain barge line, towing, and other water8
transportation companies9
A. There shall be allowed a credit against Louisiana income and corporation10
franchise taxes in an amount equal to the following amounts of the aggregate ad11
valorem taxes paid to political subdivisions of this state after December 31, 2010, by12
a barge line, towing, and other water transportation company, as defined in R.S.13
47:1851(B), with respect to such company's public service properties, as defined in14
R.S. 47:1851(M), which are assessed by the Louisiana Tax Commission at twenty-15
five percent of fair market value pursuant to R.S. 47:1854:16
(1) For taxable years beginning after December 31, 2011, and before January17
1, 2013, four percent of the aggregate ad valorem taxes paid.18 HLS 11RS-318 ORIGINAL
HB NO. 45
Page 2 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) For taxable years beginning after December 31, 2012, and before January1
1, 2014, eight percent of the aggregate ad valorem taxes paid.2
(3) For taxable years beginning after December 31, 2013, and before January3
1, 2015, twelve percent of the aggregate ad valorem taxes paid.4
(4) For taxable years beginning after December 31, 2014, and before January5
1, 2016, sixteen percent of the aggregate ad valorem taxes paid.6
(5) For taxable years beginning after December 31, 2015, and before January7
1, 2017, twenty percent of the aggregate ad valorem taxes paid.8
(6) For taxable years beginning after December 31, 2016, and before January9
1, 2018, twenty-four percent of the aggregate ad valorem taxes paid.10
(7) For taxable years beginning after December 31, 2017, and before January11
1, 2019, twenty-eight percent of the aggregate ad valorem taxes paid.12
(8) For taxable years beginning after December 31, 2018, and before January13
1, 2020, thirty-two percent of the aggregate ad valorem taxes paid.14
(9) For taxable years beginning after December 31, 2019, and before January15
1, 2021, thirty-six percent of the aggregate ad valorem taxes paid.16
(10) For taxable years beginning on or after January 1, 2021, forty percent17
of the aggregate ad valorem taxes paid.18
B. The credit allowed under this Section shall be applied against any19
Louisiana income or corporation franchise tax shown on a return filed by a person,20
as defined in R.S. 47:2, entitled to such credit as determined under Subsection C of21
this Section for income or franchise tax years ending on or after December 31, 2011.22
C. Notwithstanding any provision of law to the contrary, the following23
provisions shall apply with respect to the application of the credit established in24
Subsection A of this Section:25
(1) The credit for ad valorem taxes paid by or on behalf of a corporation26
shall be applied against Louisiana corporation income and corporation franchise27
taxes of such corporation.28 HLS 11RS-318 ORIGINAL
HB NO. 45
Page 3 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) The credit for taxes paid by an individual shall be applied against the1
Louisiana individual income tax.2
(3) The credit for taxes paid by or on behalf of a corporation classified under3
Subchapter S of the Internal Revenue Code of 1986, as amended, as an S corporation4
shall be applied first against any Louisiana corporation income and corporation5
franchise taxes due by such S corporation, and the remainder of any such credit shall6
be allocated to the shareholder or shareholders of such S corporation in accordance7
with their respective interests and applied against the Louisiana income tax of such8
shareholder or shareholders of the S corporation.9
(4) The credit for taxes paid by or on behalf of a partnership shall be10
allocated to the partners according to their distributive shares of partnership gross11
income and applied against any Louisiana income tax and corporation franchise tax12
liability of such partners.13
(5) The credit for taxes paid by or on behalf of a limited liability company14
shall be allocated to the members according to their distributive shares of such15
limited liability company's gross income and applied against any Louisiana income16
tax and corporation franchise tax liability of such members; however, the credit for17
taxes paid by or on behalf of a limited liability company treated as a corporation for18
Louisiana income tax purposes may be applied against the Louisiana corporation19
income taxes of such limited liability company.20
(6) The character of the credit for taxes paid by or on behalf of a partnership,21
S corporation, or limited liability company not treated as a corporation for Louisiana22
income tax purposes and allocated to the partners, shareholders, or members,23
respectively, of such partnership, S corporation, or limited liability company shall24
be determined as if such credit were incurred by such partners, shareholders, or25
members in the same manner as incurred by such partnership, S corporation, or26
limited liability company.27
(7) The credit for taxes paid by an estate or trust shall be applied against the28
Louisiana income tax imposed on estates and trusts.29 HLS 11RS-318 ORIGINAL
HB NO. 45
Page 4 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D. The excess, if any, of the credit allowed by this Section over the1
aggregate tax liabilities against which such allowable credit may be applied, as2
provided in this Section, shall constitute an overpayment, as defined in R.S.3
47:1621(A), and the secretary shall make a refund of such overpayment from the4
current collections of the taxes imposed under Chapter 1 of Subtitle II of this Title,5
together with interest as provided in R.S. 47:1624. The right to a refund of any such6
overpayment shall not be subject to the requirements of R.S. 47:1621(B). Any such7
refund, together with interest thereon, shall be paid by the secretary within one year8
of receipt by the secretary of the return on which the credit allowed by this Section9
is claimed. Failure of the secretary to pay such refund, in whole or in part, shall10
entitle the aggrieved taxpayer to proceed with the remedies provided in R.S.11
47:1625.12
Section 2. The legislature finds that barge line, towing, and other water13
transportation companies are engaged in direct competition with the railroad and trucking14
industries, both of which receive preferential treatment with respect to assessments for ad15
valorem tax purposes. For ad valorem tax purposes, properties of the railroad and trucking16
industries are assessed at fifteen percent, whereas properties of the water transportation17
industry are assessed at twenty-five percent. Thus, the foregoing credit is intended to18
ameliorate this disparity in the transportation industry and to allow the water transportation19
industry to remain competitive with the railroad and trucking industries.20
Section 3. This Act shall become effective upon signature by the governor or, if not21
signed by the governor, upon expiration of the time for bills to become law without signature22
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If23
vetoed by the governor and subsequently approved by the legislature, this Act shall become24
effective on the day following such approval.25 HLS 11RS-318 ORIGINAL
HB NO. 45
Page 5 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)]
Henry HB No. 45
Abstract: Provides for a refundable income and corporation franchise tax credit for certain
amounts of ad valorem taxes paid by certain barge line, towing, and other water
transportation companies.
Proposed law provides for an income and corporation franchise tax credit for the following
percentages of the aggregate ad valorem taxes paid to political subdivisions by certain barge
line, towing, and other water transportation companies:
Taxable Period Percentages
After 12/31/11 and before 1/1/13 4%
After 12/31/12 and before 1/1/14 8%
After 12/31/13 and before 1/1/15 12%
After 12/31/14 and before 1/1/16 16%
After 12/31/15 and before 1/1/17 20%
After 12/31/16 and before 1/1/18 24%
After 12/31/17 and before 1/1/19 28%
After 12/31/18 and before 1/1/20 32%
After 12/31/19 and before 1/1/21 36%
On or after 1/1/21 40%
Proposed law provides that the excess, if any, of the credit over the aggregate tax liabilities
against which such allowable credit may be applied shall constitute an overpayment, and the
secretary shall make a refund of such overpayment from the current income tax collections,
together with interest within one year.
Proposed law provides that the tax credit is intended to ameliorate this disparity in the
transportation industry and to allow the water transportation industry to remain competitive
with the railroad and trucking industries.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:6038)