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Regular Session, 2011
SENATE BILL NO. 134
BY SENATOR CLAITOR
TAX/TAXATION. Extends the Technology Commercialization Credit and Jobs Program
from December 31, 2011 to December 31, 2017 and changes it from a refundable tax credit
program to a "rebate" program. (7/1/11)
AN ACT1
To amend and reenact the title to Part VI of Chapter 39 of Title 51 of the Louisiana Revised2
Statutes of 1950, R.S. 51:2352(3) and 2353 through 2356, relative to the Technology3
Commercialization Credit and Jobs Program; to extend the program; to change the4
program benefit from a tax credit to a rebate; to provide for a limitation on the5
receipt of other tax benefits and incentives; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 51:2352(3) and 2353 through 2356 are hereby amended and8
reenacted to read as follows: 9
PART VI. TECHNOLOGY COMMERCIALIZATION CREDIT 10
REBATE AND JOBS PROGRAM11
* * *12
§2352. Definitions13
In this Part, the following terms shall have the meaning provided in this14
Section, unless the context clearly requires otherwise:15
* * *16
(3) "Taxpayer" means a natural person, business, corporation, or other17 SB NO. 134
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business entity that seeks to or has become qualified to claim a credit on any income1
or corporation franchise tax liability against taxes owed to Louisiana rebate2
pursuant to this Part.3
* * *4
§2353. Technology Commercialization Credit Rebate and Jobs Program;5
establishment; qualifications; administration6
A. Qualifying individuals or businesses that invest in the commercialization7
of Louisiana technology in Louisiana may earn, apply for, and be granted a8
refundable tax credit rebate on any income or corporation franchise tax liability and9
earn a refundable tax credit rebate based on new jobs created. Qualifying research10
centers that develop Louisiana technology to be commercialized may earn, apply for,11
and be granted a refundable tax credit rebate based on new jobs created. Such12
credits rebates shall be earned and granted for a period of not less than five tax years13
as provided in this Part. The administration of applications for these credits rebates14
and the provision of these credits rebates shall be called the Technology15
Commercialization Credit Rebate and Jobs Program.16
B.(1) The Technology Commercialization Credit Rebate and Jobs Program17
shall be implemented and administered by the Department of Economic18
Development. In compliance with the Administrative Procedure Act and this Part,19
the department shall adopt and promulgate such rules as are necessary for the20
efficient and effective administration of this program in keeping with the purposes21
for which it is enacted.22
(2) In providing for the implementation and administration of the program,23
the department shall work closely with the secretary of the Department of Revenue.24
(3) Such rules shall include provisions for:25
(a) The Department of Economic Development to certify the eligibility of any26
applicant for receipt of the tax credit rebate provided for in this Part and the27
qualification of any claimant to claim the credit against state tax liability amount of28
rebate granted.29 SB NO. 134
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(b) The presentation of an applicant's eligibility certification and any other1
documentation required to be applied for and earn or claim a credit rebate.2
C.(1) To qualify for a technology commercialization credit rebate for five3
tax years, all of the following qualifications shall be required by each applicant:4
(a) The investment in commercialization costs, including investment by5
purchase or lease of machinery and equipment which is placed into and maintained6
in service in Louisiana that is directly related to the production of technology or is7
used to produce resources essential to the production of technology.8
(b) An agreement with a Louisiana regionally accredited college, technical9
school, university, or research company to commercialize or research a technology.10
(c) An investment, pursuant to Subparagraph (a) of this Paragraph, of no11
more than two hundred fifty thousand dollars in Louisiana shall be eligible for this12
credit rebate.13
(2) To qualify for a technology commercialization credit rebate for five14
additional tax years immediately succeeding the first five years as provided in15
Paragraph (1) of this Subsection, the applicant shall demonstrate that it will continue16
to increase the number of jobs of the applicant in Louisiana and continue to meet the17
requirements of Paragraph (1) of this Subsection.18
(3) To qualify for a refundable tax credit rebate based on new jobs created19
for five years, all of the following qualifications shall be required:20
(a) The applicant must meet the requirements of Paragraph (1) of this21
Subsection or be a nonprofit or governmental research center approved by the22
secretary of the Department of Economic Development.23
(b) The applicant must create a minimum of five new direct jobs in this state24
as defined by R.S. 51:2453(4).25
(c) The applicant must offer a basic health benefits plan to the individuals it26
employs in new direct jobs in this state, and the plan shall be approved and meet the27
requirements that may be established by the Department of Economic Development.28
(d) The new direct jobs shall pay an average minimum of fifty thousand29 SB NO. 134
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dollars per year in wages to qualify for the new jobs refundable tax credit rebate,1
excluding wages to a person who owns more than thirty percent of the equity of the2
applicant.3
(4) To qualify for a new jobs refundable tax credit rebate for five additional4
tax years immediately succeeding the first five tax years as provided in Paragraph5
(3) of this Subsection, the applicant shall demonstrate that it continues to meet the6
requirements of such Paragraph, and the statutory minimum wage requirement shall7
be increased by twelve percent.8
D. No technology commercialization refundable tax credit rebate or9
refundable tax credit rebate based on jobs shall be earned, applied for, and granted10
for more than ten consecutive tax years with regard to the same location.11
§2354. Technology commercialization credit rebate; amount; duration; forfeit12
A. Except as provided in Subsection B of this Section, The The taxpayer may13
earn and apply for and, if qualified, be granted a refundable credit rebate which may14
be applied to any income or corporation franchise tax liability owed to the state by15
the taxpayer seeking to claim the credit, equal in value to forty percent of the amount16
of money invested by the taxpayer applicant in commercialization costs for one17
business location meeting the requirements of R.S. 51:2353(C)(1) and (2) as18
certified by the Department of Economic Development.19
B. A tax credit granted pursuant to this Part shall expire and have no value20
or effect on tax liability beginning with the twenty-first tax year after the tax year in21
which it was originally earned, applied for, and granted.22
C. An applicant that meets the requirements of R.S. 51:2353 and is approved23
by the Department of Economic Development may receive a refundable tax credit24
rebate based on new jobs for the period of time approved which shall be equal to six25
percent multiplied by the gross payroll of new direct jobs meeting the requirements26
as verified certified by the Department of Economic Development of R.S.27
51:2353(C)(3) and (4).28
D. C. Upon approval of such an application, the Department of Economic29 SB NO. 134
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Development shall notify the Department of Revenue and shall provide it with a1
copy of the application certification. The Department of Revenue may require the2
qualified employer to submit such additional information as may be necessary to3
administer the provisions of this Chapter. Upon receipt of the approved4
certification and any such additional information, the secretary of the5
Department of Revenue shall make payment to the taxpayer in the amount to6
which he is entitled from the current collections of the taxes collected pursuant7
to Chapter 1 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950.8
The approved employer shall file applications for refundable tax credits rebates9
based on new jobs with the Department of Economic Development to show its10
continued eligibility for the refundable tax credits rebates. The employer may be11
audited by the Department of Economic Development to verify such eligibility.12
§2355. Applicant receiving tax credits rebates not eligible to receive certain other13
tax credits and exemptions benefits14
Notwithstanding any other provision of law to the contrary, an applicant who15
receives tax credits pursuant to the provisions of this Chapter shall not be eligible to16
receive the other credits or exemptions provided for in the following provisions of17
law in connection with the activity for which the tax credits or rebates were received:18
(1) The tax credit for generation of new jobs provided for in R.S. 47:34.19
(2) The Louisiana Quality Jobs Program provided for in R.S. 51:2451 et seq.20
(3) The employer credit for employment of previously unemployed persons21
provided for in R.S. 47:6004.22
(4) The Louisiana basic skills training tax credit provided for in R.S. 47:6009.23
(5) The tax credit for employee alcohol and substance abuse treatment24
programs provided for in R.S. 47:6010.25
(6) The sales tax rebate and income tax credits of the Enterprise Zone26
Program provided for in R.S. 51:1787.27
(7) The reentrant jobs credit for formerly incarcerated employees provided28
for in R.S. 47:287.748.29 SB NO. 134
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(8) The corporation income tax credit for new jobs provided for in R.S.1
47:287.749.2
(9) The neighborhood assistance tax credit provided for in R.S. 47:287.753.3
a taxpayer shall not receive any other state credit, exemption, exclusion, rebate,4
or any other tax incentive for any expenditures for which the taxpayer has5
received a rebate under this Section.6
§2356. Expiration date of credit rebate7
There shall be no tax credits rebates granted or earned under this Part after8
December 31, 2011 2017.9
Section 2. The provisions of this Act shall be applicable to qualifying expenditures10
made on or after July 1, 2011. However, any refundable tax credits earned and granted prior11
to July 1, 2011 pursuant to the Technology Commercialization Credit and Jobs Program12
shall continue to be valid and effective after that date provided that the taxpayer continues13
to meets the requirements of the Act for eligibility for rebates.14
Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor15
and subsequently approved by the legislature, this Act shall become effective on July 1,16
2011, or on the day following such approval by the legislature, whichever is later.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law provides for the Technology Commercialization Credit and Jobs Program
administered by DED, consisting of two refundable tax credits which are limited to being
earned for up to 10 "consecutive tax years" at the same location:
1. A refundable technology commercialization credit of 40% of an investment of up to
$250,000 per year in "commercialization costs" at one business location along with
an agreement with a Louisiana regionally accredited college, technical school,
university, or research company to commercialize or research a technology.
"Commercialization costs" is defined as investment in machinery and equipment
directly used in Louisiana which is related to the production of "technology" or is
used to produce resources essential to the production of "technology" and all
expenditures associated with obtaining the rights to use or the use of "technology".
"Technology" is defined as the product or intellectual property owned or research
sponsored at a regionally accredited college, technical school, or university located
in Louisiana or any product or intellectual property to which significant development
or enhancement occurred in Louisiana. SB NO. 134
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After the first 5 years, a tax credit for 5 additional years may be granted if the
applicant meets the requirements above and can "demonstrate that it will continue
to increase the number of jobs of the applicant in Louisiana."
2. A refundable tax credit based on 6% of the gross payroll of a minimum of 5 "direct
new jobs" (as defined in the Quality Jobs Law at R.S. 51:2453(4)) created which pay
an average minimum of $50,000 per year in wages (excluding wages to a more than
30% equity owner) if the applicant meets the requirements of Paragraph (1) above
or is a "nonprofit or governmental research center" approved by the secretary of
DED.
Individuals employed in "new direct jobs" also must be "offered" a basic health
benefits plan approved and meeting requirements that may be established by DED.
After the first 5 years, a tax credit for 5 additional years may be granted if the
applicant demonstrates that it continues to meet the above requirements and the
statutory minimum wage requirement is increased by 12%.
The refundable tax credits expire beginning with the 21
st
tax year after the tax year in which
it was originally earned, applied for, and granted.
Proposed law changes the tax benefit from a refundable tax credit to a "rebate" payable by
the secretary of DOR from current collections of income taxes upon receipt of certification
from DED of the eligibility of the applicant and the amount of the rebate and any such
additional information that the secretary may require. Therefore, the 21 year limit on using
tax credits is also removed.
Present law prohibits tax credits from being granted or earned after December 31, 2011.
Proposed law extends the program as a tax rebate program to December 31, 2017.
Present law prohibited anyone receiving the tax credits from being eligible for a limited list
of tax benefits.
Proposed law prohibits anyone receiving the rebates from receiving any other state credit,
exemption, exclusion, rebate, or any other tax incentive for any expenditures for which the
taxpayer has received a rebate under the program.
Applicable to qualifying expenditures made on or after July 1, 2011.
Effective July 1, 2011.
(Amends R.S. 51:2352(3) and 2353 through 2356)