SLS 11RS-390 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 234
BY SENATOR WILLARD-LEWIS
TAX/TAXATION. Provides a credit against state income tax for sales taxes paid by
contractors of state public works projects purchasing materials for the public work in-state.
(8/15/11)
AN ACT1
To enact R.S. 47:6038, relative to tax credits; to provide for an income and corporation2
franchise tax credit for sales taxes paid by a contractor for material and supplies3
purchased in Louisiana to be used on a public work, 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 sales taxes paid by contractors for material and supplies8
purchased in Louisiana to be used on public works9
A. There shall be allowed a credit against Louisiana income and10
corporation franchise taxes for the state and local sales taxes paid by a11
contractor for material and supplies purchased in Louisiana to be used in a12
public work. The credit shall be an amount equal to the total amount of the13
state sales tax and local sales tax paid by the contractor in the purchase of the14
material and supplies from Louisiana suppliers and used in the construction of15
a public work.16
B. This credit shall be taken as a credit against the applicable tax or17 SB NO. 234
SLS 11RS-390 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
taxes in the taxable period in which the state and local taxes are paid. The total1
of all credits taken in a taxable year shall not exceed the total tax liability for2
that taxable year.3
C. For purposes of this Section, the following terms shall have the4
following meanings:5
(1) "Contractor" means any person or other legal entity who enters into6
a public contract.7
(2) "Public contract" or "contract" means any contract awarded by any8
public entity for the making of any public work or for the purchase of any9
material or supplies used in the making of a public work.10
(3) "Public entity" means the state or any agency, board, commission,11
department, or public corporation of the state.12
(4) "Public work" means the erection, construction, alteration,13
improvement, or repair of any public facility or immovable property owned,14
used, or leased by a public entity.15
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Thomas F. Wade.
DIGEST
Proposed law provides for a credit against Louisiana income and corporation franchise taxes
for the state and local sales taxes paid by a contractor for material and supplies purchased
in Louisiana to be used in a public work. The credit shall be an amount equal to the total
amount of the state sales tax and local sales tax paid by the contractor in the purchase of the
material and supplies from Louisiana suppliers and used in the construction of a public work.
Provides that the credit shall be an amount equal to the total amount of the state sales tax and
local sales tax paid by the contractor in the purchase of the material and supplies from
Louisiana suppliers and used in the construction of a public work. Further provides that the
credit shall be taken in the taxable period in which the state and local taxes are paid, and that
the total of all credits taken shall not exceed the total tax liability for that taxable year.
Effective August 15, 2011.
(Adds R.S. 47:6038)