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Regular Session, 2013
HOUSE BILL NO. 377
BY REPRESENTATIVE LEGER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX CREDITS: Establishes a registry for tax credits and provides relative to the period of
time to report claims or a transfer to the registry
AN ACT1
To amend and reenact R.S. 44:4.1(B)(32) and R.S. 47:6007(C)(4)(b), 6016(F)(1)(b),2
6019(A)(3)(b)(i)(cc), 6020(F)(2), 6021(I)(2), 6022(E)(1)(e)(ii), and 6034(D)(1) and3
to enact R.S. 47:1508(B)(33) and 1524, relative to tax credits; to establish a registry4
for certain tax credits; to provide relative to agencies required to submit information5
to the registry; to provide relative to the information which shall be recorded in the6
registry; to provide for certain requirements and limitations; to provide relative to7
access to information in the registry; to provide with respect to the confidentiality of8
certain tax records; to authorize the secretary of the Department of Revenue to share9
certain tax credit transfer information; to provide relative to the transferability of10
certain tax credits; to provide relative to the notification of the transfer or sale of11
certain tax credits; to provide that certain records are private; to provide for an12
effective date; and to provide for related matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 47:6007(C)(4)(b), 6016(F)(1)(b), 6019(A)(3)(b)(i)(cc), 6020(F)(2),15
6021(I)(2), 6022(E)(1)(e)(ii), and 6034(D)(1) are hereby amended and reenacted and R.S.16
47:1508(B)(33) and 1524 are hereby enacted to read as follows:17
§1508. Confidential character of tax records18
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B. Nothing herein contained shall be construed to prevent:1
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(33) The furnishing of information as requested by the transferor pursuant3
to the provisions of R.S. 47:1524(F).4
* * *5
§1524. Tax credit registry; requirements; limitations6
A. Purpose. The intent of this Section is to provide for a centralized7
registration and recordation system for transferable tax credits granted, issued, and8
authorized by the state of Louisiana. The provisions of this Section shall be known9
and cited as the "Louisiana Tax Credit Registry Act".10
B. Definitions. For purposes of this Section, the following words shall have11
the following meaning unless the context clearly indicates otherwise:12
(1) "Department" means the Department of Revenue.13
(2) "Identification number" means a unique identifying number that shall be14
assigned to each tax credit certificate registered in the registry. A tax credit's15
identification number shall remain associated with tax credit from the time the credit16
is originally entered into the registry through any claim, transfer, or refund17
associated with the credit, until such time as the tax credit is fully redeemed.18
(3) "Secretary" means the secretary of the Department of Revenue.19
(4) "Tax credit" means any transferable tax credit granted, issued, and20
authorized by the state applied against taxes collected by the department.21
(5) "Tax credit certificate" means any document granting tax credits issued22
by a state agency administering a tax credit program, including but not limited to tax23
credit certification letters which shall include the name of the individual or entity24
issued the tax credit, the amount of the tax credit, and any other identifying25
information regarding the tax credit.26
(6) "Transfer" means an assignment, disposition, transfer, or allocation of27
tax credits.28 HLS 13RS-397 ENGROSSED
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(7) "Transferee" means an individual or entity that receives a transfer of tax1
credits.2
(8) "Transferor" means an individual or entity that makes a transfer of tax3
credits.4
C. Administration. There is hereby established a central tax credit registry,5
hereinafter referred to as "registry", within the department for the registration and6
recordation of tax credits granted, issued, and authorized by the state and any7
subsequent transfers.8
(1) Beginning January 1, 2014, all state agencies issuing tax credits to be9
applied against taxes collected by the department shall promptly send a copy of any10
newly granted, issued, or authorized tax credit certificates to the department. Upon11
receipt of this information, the department shall assign an identifying number to each12
tax credit, and shall record the tax credit into the registry along with the name of the13
individual or entity issued the tax credit, the amount of the tax credit, and any other14
information deemed necessary by the secretary.15
(2) Any state agency that issues or authorizes tax credits shall remit an16
electronic report on forms prescribed by the secretary no later than January 31, 2014,17
of all tax credit certificates issued prior to January 1, 2014. The department shall18
endeavor to record all tax credit transfers which occurred prior to January 1, 2014,19
into the registry.20
D. Transfers.21
(1) Joint notice from the transferor and the transferee of all tax credit22
transfers shall be submitted to the department, including additional information23
which the secretary deems necessary and appropriate. Upon receipt of the24
applicable tax credit information, the department shall record the transfer of the tax25
credit by recording the applicable identification numbers, the name of the transferor26
and transferee, the amount of the tax credits being transferred, and any other27
information deemed necessary by the secretary.28 HLS 13RS-397 ENGROSSED
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(2) Notwithstanding any other provision of law to the contrary, no issuance1
or transfer of tax credits after January 1, 2014, shall be effective as to third parties2
nor recognized by the department until it has been recorded in the registry.3
(3) The effectiveness of a tax credit transfer as between the transferor and4
the transferee shall be provided by agreement of the parties or, in the absence of an5
agreement, in accordance with the provisions of the Louisiana Civil Code and its6
ancillaries.7
E. Disallowance and recapture of tax credits. A tax credit shall be8
disallowed and recaptured if the department or state agency issuing the tax credit9
finds that an individual or entity obtained a tax credit in violation of the provisions10
of the statute authorizing issuance of the tax credit, including but not limited to fraud11
or misrepresentation. Any tax credit previously granted to an individual or entity,12
but later disallowed may be recovered by the secretary pursuant to the provisions of13
R.S. 47:1561. The provisions of this Subsection are in addition to and shall not limit14
the authority of the secretary of the department to assess, collect, or recapture under15
any other provision of law.16
(1) If the transferor of a tax credit did not have the right to claim or use the17
tax credit at the time of the transfer, the transferee's recourse shall be against the18
transferor, as provided by agreement of the parties. The department shall warrant the19
validity of the information recorded in the registry for credits issued after January 1,20
2014. A good faith transferee, as determined by the department at the time of21
transfer, that relied on the validity of the credits recorded in the registry shall not be22
subject to the provisions of this Subsection. For purposes of this Subsection, "good23
faith" shall mean honesty in fact and the observance of reasonable commercial24
standards of fair dealing.25
(2) Notwithstanding any other provision of law, the department may26
recapture any amounts and other damages from any individual or entity determined27
not to be in good faith as provided for in Paragraph (1) of this Subsection.28 HLS 13RS-397 ENGROSSED
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F. Prescription. (1) In case of disputed title to tax credits, prescription1
against assessment shall be suspended by any of the following:2
(a) The filing of a summary proceeding in any state or federal court.3
(b) A written agreement between all interested taxpayers and the secretary;4
or5
(c) The filing of any pleading, either by the secretary or any taxpayer, with6
the Board of Tax Appeals.7
(2) Prescription shall begin to run again upon the issuance of a final8
administrative decision, or by a judgment which has become final and9
nonappealable.10
G. Registry access. Information contained in the registry regarding the11
ownership of tax credits, all transfers of tax credits, and the value of tax credits shall12
be deemed personal and confidential under the provisions of R.S. 47:1508 and shall13
not be available to the public. The data compiled in the registry shall be available14
for cross-referencing by other state agencies; however, state agencies shall apply for15
access to the registry from the department and shall be subject to any permissions,16
restrictions, and conditions as determined by the department. Upon application by17
a transferor, on a form prescribed by the secretary, the department shall provide18
information sufficient to certify the transferor is the record owner of tax credits19
issued on or after January 1, 2014, which are registered in the transferor's name in20
the registry. The secretary shall prescribe the application required by the provisions21
of this Subsection to be submitted by a transferor to certify the record owner of tax22
credits.23
H. Rules. The secretary of the department may promulgate rules and24
regulations in accordance with the Administrative Procedure Act as may be25
necessary to implement the provisions of this Section.26
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§6007. Motion picture investor tax credit28
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C. Investor tax credit; specific productions and projects.1
* * *2
(4) Transferability of the credit. Any motion picture tax credits not3
previously claimed by any taxpayer against its income tax may be transferred or sold4
to another Louisiana taxpayer or to the office, subject to the following conditions:5
* * *6
(b) Transferors and transferees shall submit to the office, and to the7
Department of Revenue in writing, a notification of any transfer or sale of tax credits8
within thirty ten business days after the transfer or sale of such tax credits. The9
notification shall include the transferor's tax credit balance prior to transfer, a copy10
of any tax credit certification letter(s) issued by the office and the secretary of the11
Department of Economic Development and, the transferor's remaining tax credit12
balance after transfer, all tax identification numbers for both transferor and13
transferee, the date of transfer, the amount transferred, a copy of the credit14
certificate, price paid by the transferee to the transferor, in the case when the15
transferor is a state-certified production, for the tax credits, and any other16
information required by the office or the Department of Revenue. For the purpose17
of reporting transfer prices, the term "transfer" shall include allocations pursuant to18
Paragraph (2) of this Subsection as provided by rule. The office may post on its19
website an average tax credit transfer value, as determined by the office and the20
secretary of the Department of Economic Development to reflect adequately the21
current average tax credit transfer value. The tax credit transfer value means the22
percentage as determined by the price paid by the transferee to the transferor divided23
by the dollar value of the tax credits that were transferred in return. The notification24
submitted to the office Department of Revenue shall include a processing fee of up25
to two hundred dollars per transferee, and any pricing information submitted by a26
transferor or transferee shall be treated by the office and the Department of Revenue27
as proprietary to the entity reporting such information and therefore confidential.28 HLS 13RS-397 ENGROSSED
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However, this shall not prevent the publication of summary data that includes no1
fewer than three transactions.2
* * *3
§6016. New markets tax credit4
* * *5
F.(1) Any tax credits not previously claimed by any taxpayer against its6
income or franchise tax may be transferred or sold to another Louisiana taxpayer,7
subject to the following conditions:8
* * *9
(b) Transferors and transferees shall submit to the Department of Revenue10
in writing, a notification of any transfer or sale of tax credits within thirty ten11
business days after the transfer or sale of such tax credits. The notification shall12
include the transferor's tax credit balance prior to transfer, the transferor's remaining13
tax credit balance after transfer, all tax identification numbers for both transferor and14
transferee, the date of transfer, the amount transferred, a copy of the credit certificate15
price paid by the transferee to the transferor, and any other information required by16
the Department of Revenue. The notification submitted shall include a processing17
fee of up to two hundred dollars per transferee.18
* * *19
§6019. Tax credit; rehabilitation of historic structures20
A.21
* * *22
(3)23
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(b)(i)25
* * *26
(cc) Transferors and transferees shall submit to the state historic preservation27
office and to the Department of Revenue in writing a notification of any transfer or28
sale of tax credits within thirty ten business days after the transfer or sale of such tax29 HLS 13RS-397 ENGROSSED
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credits. The notification shall include the transferor's tax credit balance prior to1
transfer, the credit identification number assigned by the state historic preservation2
office, the remaining balance after transfer, all federal and Louisiana tax3
identification numbers for both transferor and transferee, the date of transfer, the4
amount transferred, and any other information required by the state historic5
preservation office or the Department of Revenue. Failure to comply with this6
notification provision will result in the disallowance of the tax credit until the parties7
are in full compliance.8
* * *9
§6020. Angel Investor Tax Credit Program10
* * *11
F. Transferability of the credit. Any Angel Investor Tax Credits not12
previously claimed by any taxpayer against its tax may be transferred or sold to13
another Louisiana taxpayer, subject to the following conditions:14
* * *15
(2) Transferors and transferees shall submit to the department and the16
Department of Revenue in writing, a notification of any transfer or sale of tax credits17
within thirty ten business days after the transfer or sale of such tax credits. The18
notification shall include the transferor's tax credit balance prior to transfer, a copy19
of any tax credit certificate issued by the secretary of the Department of Economic20
Development and, the transferor's remaining tax credit balance after transfer, all tax21
identification numbers for both transferor and transferee, the date of transfer, the22
amount transferred, the price paid by the transferee to the transferor, and any other23
information required by the department or the Department of Revenue. Any pricing24
information submitted by a transferor or transferee shall be treated by the department25
and the Department of Revenue as proprietary to the entity reporting such26
information and therefore confidential. However, this shall not prevent the27
publication of summary data that includes no fewer than three transactions.28
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§6021. Brownfields Investor Tax Credit1
* * *2
I. Transferability of the credit. Any tax credits provided for in this Section3
not previously claimed by any taxpayer against its income tax may be transferred or4
sold to another Louisiana taxpayer, subject to the following conditions:5
* * *6
(2) Transferors and transferees shall submit to the Department of Revenue7
in writing, a notification of any transfer or sale of tax credits within thirty ten8
business days after the transfer or sale of such tax credits. The notification shall9
include the transferor's tax credit balance prior to transfer, a copy of any tax credit10
certification letter(s) issued by the Department of Environmental Quality, the name11
of the state-certified site, the transferor's remaining tax credit balance after transfer,12
all tax identification numbers for both transferor and transferee, the date of transfer,13
the amount transferred, a copy of the credit certificate, price paid by the transferee14
to the transferor, for the tax credits, and any other information required by the15
Department of Revenue. For the purpose of reporting transfer prices, the term16
"transfer" shall include allocations pursuant to R.S. 47:6007(C)(3) as provided by17
rule.18
* * *19
§6022. Digital interactive media and software tax credit20
* * *21
E. Use of tax credits22
(1) For tax credits earned for expenditures made on or before December 31,23
2011:24
* * *25
(e) Any tax credits allocated to a person and not previously claimed by any26
taxpayer against his Louisiana state income or franchise tax may be transferred or27
sold by such person to another person, subject to the following conditions:28
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(ii) Transferors and transferees shall submit to the office and Department of1
Revenue in writing, a notification of any transfer or sale of tax credits within thirty2
ten business days after the transfer or sale of such tax credits. The notification shall3
include the transferor's tax credit balance prior to transfer, the state-certified4
production number, the name of the state-certified production, the transferor's5
remaining tax credit balance after transfer, all tax identification numbers for both6
transferor and transferee, the date of transfer, the amount transferred, a copy of the7
tax credit certificate, and any other information required by the office or the8
Department of Revenue.9
* * *10
§6034. Musical and theatrical production income tax credit11
* * *12
D.(1) The credit shall be allowed against individual or corporate income tax13
of the companies or financiers of the production or infrastructure project in14
accordance with their share of the credit as provided for in the application for15
certification for the production or infrastructure project. A company or financier16
may on a one-time basis, transfer the credit, and/or or any refund of an overpayment,17
to an individual or other entity including without limitation a bank or other lender,18
provided that the transfer shall not be effective until receipt by the Department of19
Revenue of written notice of such transfer. Transferors and transferees shall submit20
to the Department of Revenue in writing, a notification of any transfer of the tax21
credit within ten business days after the transfer. The credit shall be allowed for the22
taxable period in which expenditures eligible for a credit are expended. Any excess23
of the credit over the income tax liability against which the credit may be applied24
shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary of25
the Department of Revenue shall make a refund of such overpayment from the26
current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as27 HLS 13RS-397 ENGROSSED
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amended. The right to a refund of any such overpayment shall not be subject to the1
requirements of R.S. 47:1621(B).2
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Section 2. R.S. 44:4.1(B)(32) is hereby amended and reenacted to read as follows:4
§4.1. Exceptions5
* * *6
B. The legislature further recognizes that there exist exceptions, exemptions,7
and limitations to the laws pertaining to public records throughout the revised8
statutes and codes of this state. Therefore, the following exceptions, exemptions, and9
limitations are hereby continued in effect by incorporation into this Chapter by10
citation:11
* * *12
(32) R.S. 47:15, 349, 633.6, 1508, 1515.3, 1516, 1524(D), 1837, 2130, 2327,13
2605, 6026, 900614
* * *15
Section 3. This Act shall become effective upon signature by the governor or, if not16
signed by the governor, upon expiration of the time for bills to become law without signature17
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If18
vetoed by the governor and subsequently approved by the legislature, this Act shall become19
effective on the day following such approval.20
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)]
Leger HB No. 377
Abstract: Requires the Dept. of Revenue to establish a tax credit registry to track transfers,
claims, and refunds of tax credits and changes the time for reporting transfers of
various tax credits from 30 days to 10 business days.
Proposed law provides for the establishment of a central tax credit registry within the
Department of Revenue (DOR) for the registration and recordation of tax credits granted,
issued, and authorized by the state and any subsequent transfers. HLS 13RS-397 ENGROSSED
HB NO. 377
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are additions.
Proposed law provides definitions for "identification number", "tax credit certificate",
"transfer", and "transferor".
Proposed law requires that, beginning Jan. 1, 2014, all state agencies issuing tax credits to
promptly send a copy of any newly granted, issued, or authorized tax credit certificates to
the DOR. Upon receipt of this information, DOR shall assign an identifying number to each
tax credit, and shall record the tax credit into the registry along with the name of the
individual or entity issued the tax credit, the amount of the tax credit, and any other
information deemed necessary by the secretary.
Proposed law requires any state agency that issues or authorizes tax credits to remit an
electronic report no later than Jan. 31, 2014, of all tax credit certificates issued prior to Jan.
1, 2014. Further requires the department to endeavor to record all tax credit transfers which
occurred prior to Jan. 1, 2014, into the registry.
Proposed law requires joint notice from the transferor and the transferee of all tax credit
transfers to be submitted to the DOR. Upon receipt of the applicable tax credit information,
DOR shall record the transfer of the tax in the registry. Further provides that no issuance
or transfer of tax credits after Jan. 1, 2014, shall be effective as to third parties nor
recognized by DOR until it has been recorded in the registry.
Proposed law provides for the disallowance and recapture of tax credits if DOR or the
agency issuing the tax credit finds that an individual or entity obtained a tax credit in
violation of present law, including but not limited to fraud or misrepresentation.
Proposed law provides that if the transferor of a tax credit did not have the right to claim or
use the tax credit at the time of the transfer, the transferee's recourse shall be against the
transferor, as provided by agreement of the parties. Further provides that DOR shall warrant
the validity of the information recorded in the registry for credits issued after Jan. 1, 2014.
Proposed law provides that in case of disputed title to tax credits, prescription against
assessment shall be suspended by the filing of a summary proceeding in any state or federal
court, the filing of a written agreement between all interested taxpayers and the secretary,
or the filing of any pleading with the Board of Tax Appeals.
Proposed law provides that information in the registry regarding the ownership and value
of tax credits and all transfers of tax credits shall be deemed personal and confidential and
shall not be available to the public. Further provides that data compiled in the registry shall
be available for cross-referencing by other state agencies; however, state agencies shall
apply for access to the registry from the department and shall be subject to any permissions,
restrictions, and conditions as determined by the department.
Proposed law authorizes the department to promulgate rules and regulations as are necessary
to implement the provisions of proposed law.
Present law provides for various tax credit programs, including but not limited to the motion
picture investor, new markets, rehabilitation of historic structures, Angel Investor,
Brownfields Investor, digital interactive media and software, and musical and theatrical
production tax credits. Present law requires, in cases of transferable tax credits, for the
transferor and the transferee to submit to the agency administering the tax credit and the
department written notification of the transfer or sale of the tax credit within 30 days of the
transfer. Proposed law retains present law but changes the period of written notification
from 30 days of the transfer or sale of the credit to 10 business days of the transfer or sale
of the credit. HLS 13RS-397 ENGROSSED
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Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 44:4.1(B)(32) and R.S. 47:6007(C)(4)(b), 6016(F)(1)(b), 6019(A)(3)(b)(i)(cc),
6020(F)(2), 6021(I)(2), 6022(E)(1)(e)(ii), and 6034(D)(1); Adds R.S. 47:1508(B)(33) and
1524)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Provided for an exception to the confidentiality of tax records for the furnishing
of information as requested by a transferor of tax credits.
2. Changed the date from Sept. 1, 2013, to Jan. 1, 2014, that tax credits must be
registered in order to be eligible for transfer.
3. Deleted requirements that transfers or claims against tax credits be registered no
later than 10 business days within the date of transfer, claim, or refund of the tax
credit and that only properly registered tax credits shall be eligible for transfer.
4. Added provision that no issuance or transfer of tax credits after Jan. 1, 2014,
shall be effective as to third parties nor recognized by the DOR until it has been
recorded in the registry.
5. Deleted requirement that state agencies which issued tax credits prior to Sept. 1,
2013, remit all information the agency retained regarding the tax credit to the
department for entry into the registry. Additionally, deletes requirement that the
owner of a tax credit issued prior to Sept. 1, 2013, remit all necessary
information to the department or state agency which issued the original credit for
entry into the centralized registry.
6. Added provision that makes it the responsibility of the state agency which issued
tax credits to report the issuance of the credit to DOR for input in the registry.
Further requires state agencies to report to DOR no later than Jan. 31, 2014, all
tax credit certificates issued by such agency prior to Jan. 1, 2014.
7. Added requirement that DOR warrant the validity of the information recorded
in the registry for credits issued after Jan. 1, 2014.
8. Added provisions for the disallowance and recapture of tax credits and for when
prescription begins to run in the case of disputed title of tax credits.