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Regular Session, 2011
SENATE BILL NO. 257
BY SENATOR CROWE
TAX/TAXATION. Remove the requirement for certification by the commissioner of
administration and approval by the Joint Legislative Committee on the Budget and the state
bond commission before the Investor Tax Credit and the Import Export Cargo Credit for
ports may be issued by the Department of Economic Development. (7/1/11)
AN ACT1
To amend and reenact R.S. 47:6036(C)(1)(b) and (c) and the introductory paragraph of2
(I)(1), and (I)(1)(c) and (2)(a), relative to tax credits; to remove certain requirements3
for certification by the commissioner of administration and approvals by certain4
committees before certain tax credits may be issued; and to provide for related5
matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:6036(C)(1)(b) and (c) and the introductory paragraph of (I)(1),8
and (I)(1)(c) and (2)(a) are hereby amended and reenacted to read as follows: 9
ยง6036. Ports of Louisiana tax credits10
* * *11
C. Investor tax credit.12
(1) * * *13
(b) The Investor Tax Credit provided for in this Subsection shall be issued14
by the Department of Economic Development for a qualifying project if the15
commissioner of administration, after approval of the Joint Legislative Committee16
on the Budget, and the state bond commission certifies to the secretary of the17 SB NO. 257
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department that there will be sufficient revenue received by the state to offset the1
effect to the state of the tax credits provided for the capital costs of the project,2
whether from increased port or port and harbor activity because of the grant of the3
tax credit or otherwise. If the commissioner with the approval of the committee so4
certifies, then the Department of Economic Development may grant a tax credit5
which shall be equal to the total capital costs of a qualifying project to be taken at6
five percent per tax year; however, the total amount of tax credits granted on a7
qualifying project shall not exceed the total cost of the project.8
(c) The tax credit shall be earned by investors at the time expenditures are9
made by an investing company; however, tax credits shall not be applied against a10
tax liability until the project is approved by the department after certification from11
the commissioner with the approval of the committee and the state bond commission12
and capital cost expenditures are certified by the department. The Department of13
Economic Development shall certify capital cost expenditures no less than twice14
during the duration of the qualifying project unless the investing company agrees,15
in writing, to reimburse the Department of Economic Development for the costs of16
any additional certifications.17
* * *18
I. Import Export Cargo Credit.19
(1) Certification of taxpayer. Only those taxpayers who have received20
certification from the secretary of the Department of Economic Development shall21
be eligible to take the tax credits provided for by this Subsection and then only for22
the taxable year or years and for the amount provided for in the commissioner of23
administration's certification, approved by the Joint Legislative Committee on the24
Budget and the state bond commission, provided for in Item (2)(a)(ii) of this25
Subsection as allocated by the secretary. The secretary shall promulgate rules in26
accordance with the Administrative Procedure Act which establish the process by27
which a taxpayer shall apply for certification.28
* * *29 SB NO. 257
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(c) The secretary shall provide a statement of certification to each taxpayer1
which he has certified as eligible to take the tax credit after approval of the Joint2
Legislative Committee on the Budget and the state bond commission, which shall3
contain the taxable year or years for which the taxpayer is allowed the tax credit and4
the amount of tax credit allocated for such taxable year or years. The secretary shall5
also transmit a copy of such statement to the secretary of the Department of6
Revenue.7
(2)(a)(i) For taxable years beginning on and after January 1, 2009, there shall8
be allowed a credit against the individual income, corporation income, and9
corporation franchise tax liability of a taxpayer who has received certification10
pursuant to the provisions of Paragraph (1) of this Subsection. The amount of the11
credit shall be equal to the product of multiplying five dollars by the taxpayer's12
number of tons of qualified cargo for the taxable year but only for the total amount13
of the allocation provided to the taxpayer by the secretary of the Department of14
Economic Development for such taxable year.15
(ii) The tax credit provided for in this Subsection shall only be allowed for16
all or a portion of a fiscal year if the commissioner of administration certifies to the17
secretary of the Department of Economic Development that there will be sufficient18
revenue received by the state to offset the effect to the state of the tax credits19
provided for in this Subsection whether from increased utilization of public port20
facilities because of the tax credit or otherwise, and such certification is approved by21
the Joint Legislative Committee on the Budget and the state bond commission.22
* * *23
Section 2. This Act shall be applicable:24
(1) With regard to the investor tax credit, to qualifying projects for which a25
cooperative endeavor agreement between an investing company or entity proposing the26
qualifying project and a public port is executed after June 30, 2011.27
(2) With regard to the import export cargo credit, to certifications issued by the28
Department of Economic Development to international business entities after June 30, 2011.29 SB NO. 257
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Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor1
and subsequently approved by the legislature, this Act shall become effective on July 1,2
2011, or on the day following such approval by the legislature, whichever is later.3
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law provides the following two credits against income and franchise tax for ports and
port, harbor, and terminal districts:
1. To an investing company, an Investor Tax Credit equal to the total "capital costs" of
a "qualifying project" to be taken by the investing company at 5% per tax year.
"Qualifying project" is defined as a project to be sponsored or undertaken by a port
and one or more investing companies which has a "capital cost" of not less than $5
million and at which the predominant trade or business activity conducted will
constitute industrial, warehousing, or port and harbor operations and cargo handling,
including any "port or port and harbor activity". The credit terminates on January 1,
2015.
2. To "international business entities" which have received certification from the
secretary of DED, an Import Export Cargo Credit equal to the product of multiplying
$5.00 by the "international business entity's" number of tons of "qualified cargo" for
the taxable year. "Qualified cargo" is defined as containerized machinery,
equipment, materials, products, or commodities, but not liquids or dry commodities
that are handled in bulk.
Present law authorizes DED to issue the Investor Tax Credit if the commissioner of
administration, after approval of the Joint Legislative Committee on the Budget and the state
bond commission, certifies to the secretary of DED that there will be sufficient revenue
received by the state to offset the effect to the state of the tax credits provided for the capital
costs of the project, whether from increased port or port and harbor activity because of the
grant of the tax credit or otherwise.
Proposed law deletes this limitation, authorizing DED to issue the tax credits without the
commissioner's certification or the committees' approval.
Present law authorizes DED to issue the Import Export Cargo Credit to an "international
business entity" which has received certification from the secretary of DED only for the
taxable year or years and for the amount allocated to the "international business entity" as
provided for in the commissioner of administration's certification, approved by the Joint
Legislative Committee on the Budget and the state bond commission. The tax credit may be
issued for all or a portion of a fiscal year if the commissioner certifies to the secretary of
DED that there will be sufficient revenue received by the state to offset the effect to the state
of the tax credits issued whether from increased utilization of public port facilities because
of the tax credit or otherwise, and such certification is approved by the Joint Legislative
Committee on the Budget and the state bond commission.
Proposed law deletes this limitation, authorizing DED to issue the tax credits without the
commissioner's certification or the committees' approval.
Applicable with regard to the Investor Tax Credit for qualifying projects for which a
cooperative endeavor between an investing company or entity proposing the qualifying
project and a public port is executed after June 30, 2011 and, with regard to the Import SB NO. 257
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Export Cargo Credit, to certifications issued by DED to international business entities after
that date.
Effective on July 1, 2011.
(Amends R.S. 47:6036(C)(1)(b) and (c) and the introductory paragraph of (I)(1), and
(I)(1)(c) and (2)(a))