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Regular Session, 2011 ENROLLED
SENATE BILL NO. 134
BY SENATORS CLAITOR AND MARIONNEAUX
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 and to enact R.S. 47:60383
and R.S. 51:2306, relative to the Technology Commercialization Credit Program; to4
extend the program; to provide for the Technology Commercialization Rebate and5
Jobs Program; to provide for a limitation on the receipt of other incentives; to require6
reports by the secretary of the Department of Economic Development; and to provide7
for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 47:6038 is hereby enacted to read as follows:10
§6038. Reports; tax incentives administered by the Department of Economic11
Development12
Notwithstanding any provision of law to the contrary, the secretary of13
the Department of Economic Development shall report to the Joint Legislative14
Committee on the Budget information concerning the granting and denial of tax15
credits and rebates, hereinafter referred to as "tax incentives", administered by16
the department authorized under this Chapter. On January thirtieth of each17
year, the secretary shall transmit to the members of the committee a list of the18
recipients of each tax incentive, as well as a list of applicants denied tax19
incentives, over the most recently concluded calendar year. The report shall20
contain the name and primary place of business of each applicant.21
Section 2. The title to Part VI of Chapter 39 of Title 51 of the Louisiana Revised22
Statutes of 1950, R.S. 51:2352(3) and 2353 through 2356 are hereby amended and reenacted23
and R.S. 51:2306 is hereby enacted to read as follows:24
§2306. Reports; tax incentives administered by the Department of Economic25
Development26
Notwithstanding any provision of law to the contrary, the secretary of27
ACT No. 416 SB NO. 134 ENROLLED
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the Department of Economic Development shall report to the Joint Legislative1
Committee on the Budget information concerning the granting and denial of tax2
credits and rebates, hereinafter referred to as "tax incentives", administered by3
the department authorized under this Title. On January thirtieth of each year,4
the secretary shall transmit to the members of the committee a list of the5
recipients of each tax incentive, as well as a list of applicants denied tax6
incentives, over the most recently concluded calendar year. The report shall7
contain the name and primary place of business of each applicant.8
* * *9
PART VI. TECHNOLOGY COMMERCIALIZATION CREDIT 10
AND JOBS PROGRAM11
* * *12
§2352. Definitions13
In this Part, the following terms shall have the meanings provided in this14
Section, unless the context clearly requires otherwise:15
* * *16
(3) "Taxpayer" means a natural person, business, corporation, or other17
business entity that seeks to or has become qualified to claim a credit on any income18
or corporation franchise tax liability against taxes owed to Louisiana .19
* * *20
§2353. Technology Commercialization Credit and Jobs Program; establishment;21
qualifications; administration22
A. Qualifying individuals or businesses that invest in the commercialization23
of Louisiana technology in Louisiana may earn, apply for, and be granted a24
refundable tax credit on any income or corporation franchise tax liability and earn25
a refundable tax credit based on new jobs created. Qualifying research centers that26
develop Louisiana technology to be commercialized may earn, apply for, and be27
granted a refundable tax credit based on new jobs created. Such credits shall be28
earned and granted for a period of not less than five tax years as provided in this Part.29
The administration of applications for these credits and the provision of these credits30 SB NO. 134 ENROLLED
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shall be called the Technology Commercialization Credit and Jobs Program.1
B.(1) The Technology Commercialization Credit and Jobs Program shall be2
implemented and administered by the Department of Economic Development. In3
compliance with the Administrative Procedure Act and this Part, the department shall4
adopt and promulgate such rules as are necessary for the efficient and effective5
administration of this program in keeping with the purposes for which it is enacted.6
(2) In providing for the implementation and administration of the program,7
the department shall work closely with the secretary of the Department of Revenue.8
(3) Such rules shall include provisions for:9
(a) The Department of Economic Development to certify the eligibility of any10
applicant for receipt of the tax credit provided for in this Part and the qualification11
of any claimant to claim the credit against state tax liability.12
(b) The presentation of an applicant's eligibility certification and any other13
documentation required to be applied for and earn or claim a credit.14
C.(1) To qualify for a technology commercialization credit for five tax years,15
all of the following qualifications shall be required by each applicant:16
(a) The investment in commercialization costs, including investment by17
purchase or lease of machinery and equipment which is placed into and maintained18
in service in Louisiana that is directly related to the production of technology or is19
used to produce resources essential to the production of technology.20
(b) An agreement with a Louisiana regionally accredited college, technical21
school, university, or research company to commercialize or research a technology.22
(c) An investment, pursuant to Subparagraph (a) of this Paragraph, of no23
more than two hundred fifty thousand dollars in Louisiana shall be eligible for this24
credit.25
(2) To qualify for a technology commercialization credit for five additional26
tax years immediately succeeding the first five years as provided in Paragraph (1)27
of this Subsection, the applicant shall demonstrate that it will continue to increase28
the number of jobs of the applicant in Louisiana and continue to meet the29
requirements of Paragraph (1) of this Subsection.30 SB NO. 134 ENROLLED
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(3) To qualify for a refundable tax credit based on new jobs created for five1
years, all of the following qualifications shall be required:2
(a) The applicant must meet the requirements of Paragraph (1) of this3
Subsection or be a nonprofit or governmental research center approved by the4
secretary of the Department of Economic Development.5
(b) The applicant must create a minimum of five new direct jobs in this state6
as defined by R.S. 51:2453(4).7
(c) The applicant must offer a basic health benefits plan to the individuals it8
employs in new direct jobs in this state, and the plan shall be approved and meet the9
requirements that may be established by the Department of Economic Development.10
(d) The new direct jobs shall pay an average minimum of fifty thousand11
dollars per year in wages to qualify for the new jobs refundable tax credit, excluding12
wages to a person who owns more than thirty percent of the equity of the applicant.13
(4) To qualify for a new jobs refundable tax credit for five additional tax14
years immediately succeeding the first five tax years as provided in Paragraph (3)15
of this Subsection, the applicant shall demonstrate that it continues to meet the16
requirements of such Paragraph, and the statutory minimum wage requirement shall17
be increased by twelve percent.18
D. No technology commercialization refundable tax credit or refundable tax19
credit based on jobs shall be earned, applied for, and granted for more than ten20
consecutive tax years with regard to the same location.21
§2354. Technology commercialization credit; amount; duration; forfeit22
A. Except as provided in Subsection B of this Section, the taxpayer may earn23
and apply for and, if qualified, be granted a refundable tax credit which may be24
applied to any income or corporation franchise tax liability owed to the state by the25
taxpayer seeking to claim the credit, equal in value to forty percent of the amount26
of money invested by the taxpayer applicant in commercialization costs for one27
business location meeting the requirements of R.S. 51:2353(C)(1) and (2) as28
certified by the Department of Economic Development.29
B. A tax credit granted pursuant to this Part shall expire and have no value30 SB NO. 134 ENROLLED
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or effect on tax liability beginning with the twenty-first tax year after the tax year in1
which it was originally earned, applied for, and granted.2
C. An applicant that meets the requirements of R.S. 51:2353 and is approved3
by the Department of Economic Development may receive a refundable tax credit4
based on new jobs for the period of time approved which shall be equal to six percent5
multiplied by the gross payroll of new direct jobs meeting the requirements of R.S.6
51:2353(C)(3) and (4) as verified certified by the Department of Economic7
Development.8
D. C. Upon approval of such an application, the Department of Economic9
Development shall notify the Department of Revenue and shall provide it with a10
copy of the application certification. The Department of Revenue may require the11
qualified employer to submit such additional information as may be necessary to12
administer the provisions of this Chapter. The approved employer shall file13
applications for refundable tax credits based on new jobs with the Department of14
Economic Development to show its continued eligibility for the refundable tax15
credits . The employer may be audited by the Department of Economic Development16
to verify such eligibility.17
§2355. Applicant receiving tax credits not eligible to receive certain other tax credits18
and exemptions incentives19
Notwithstanding any other provision of law to the contrary, an applicant who20
receives tax credits pursuant to the provisions of this Chapter shall not be eligible to21
receive the other credits or exemptions provided for in the following provisions of22
law in connection with the activity for which the tax credits or rebates were received:23
(1) The tax credit for generation of new jobs provided for in R.S. 47:34.24
(2) The Louisiana Quality Jobs Program provided for in R.S. 51:2451 et seq.25
(3) The employer credit for employment of previously unemployed persons26
provided for in R.S. 47:6004.27
(4) The Louisiana basic skills training tax credit provided for in R.S. 47:6009.28
(5) The tax credit for employee alcohol and substance abuse treatment29
programs provided for in R.S. 47:6010.30 SB NO. 134 ENROLLED
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(6) The sales tax rebate and income tax credits of the Enterprise Zone1
Program provided for in R.S. 51:1787.2
(7) The reentrant jobs credit for formerly incarcerated employees provided3
for in R.S. 47:287.748.4
(8) The corporation income tax credit for new jobs provided for in R.S.5
47:287.749.6
(9) The neighborhood assistance tax credit provided for in R.S. 47:287.753.7
a taxpayer shall not receive any other tax incentive administered by the8
Department of Economic Development for any expenditures for which the9
taxpayer has received a credit under this Section.10
§2356. Expiration date of credit11
There shall be no tax credits granted or earned under this Part after December12
31, 2011 2017.13
Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor14
and subsequently approved by the legislature, this Act shall become effective on July 1,15
2011, or on the day following such approval by the legislature, whichever is later.16
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: