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ACT No. 418
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.
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
* * *19
B. Nothing herein contained shall be construed to prevent:20
* * *21
(33) The furnishing of information as requested by the transferor pursuant22
to the provisions of R.S. 47:1524(G).23
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§1524. Tax credit registry; requirements; limitations1
A. Purpose. The intent of this Section is to provide for a centralized2
registration and recordation system for transferable tax credits granted, issued, and3
authorized by the state of Louisiana. The provisions of this Section shall be known4
and cited as the "Louisiana Tax Credit Registry Act".5
B. Definitions. For purposes of this Section, the following words shall have6
the following meaning unless the context clearly indicates otherwise:7
(1) "Department" means the Department of Revenue.8
(2) "Identification number" means a unique identifying number that shall be9
assigned to each tax credit certificate registered in the registry. A tax credit's10
identification number shall remain associated with the tax credit from the time the11
credit is originally entered into the registry through any claim, transfer, or refund12
associated with the credit, until such time as the tax credit is fully redeemed.13
(3) "Secretary" means the secretary of the Department of Revenue.14
(4) "Tax credit" means any transferable tax credit granted, issued, and15
authorized by the state applied against taxes collected by the department.16
(5) "Tax credit certificate" means any document granting tax credits issued17
by a state agency administering a tax credit program, including but not limited to tax18
credit certification letters which shall include the name of the individual or entity19
issued the tax credit, the amount of the tax credit, and any other identifying20
information regarding the tax credit.21
(6) "Transfer" means an assignment, disposition, transfer, or allocation of22
tax credits.23
(7) "Transferee" means an individual or entity that receives a transfer of tax24
credits.25
(8) "Transferor" means an individual or entity that makes a transfer of tax26
credits.27
C. Administration. There is hereby established a central tax credit registry,28
hereinafter referred to as "registry", within the department for the registration and29 ENROLLEDHB NO. 377
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recordation of tax credits granted, issued, and authorized by the state and any1
subsequent transfers.2
(1) Beginning January 1, 2014, all state agencies issuing tax credits to be3
applied against taxes collected by the department shall promptly send a copy of any4
newly granted, issued, or authorized tax credit certificates to the department. Upon5
receipt of this information, the department shall assign an identifying number to each6
tax credit, and shall record the tax credit into the registry along with the name of the7
individual or entity issued the tax credit, the amount of the tax credit, and any other8
information deemed necessary by the secretary.9
(2) Any state agency that issues or authorizes tax credits shall remit an10
electronic report on forms prescribed by the secretary no later than January 31, 2014,11
of all tax credit certificates issued prior to January 1, 2014. The department shall12
endeavor to record all tax credit transfers which occurred prior to January 1, 2014,13
into the registry.14
D. Transfers.15
(1) Joint notice from the transferor and the transferee of all tax credit16
transfers shall be submitted to the department, including additional information that17
the secretary deems necessary and appropriate. Upon receipt of the applicable tax18
credit information, the department shall record the transfer of the tax credit by19
recording the applicable identification numbers, the name of the transferor and20
transferee, the amount of the tax credits being transferred, and any other information21
deemed necessary by the secretary.22
(2) Notwithstanding any other provision of law to the contrary, no issuance23
or transfer of tax credits after January 1, 2014, shall be effective as to third parties24
nor recognized by the department until it has been recorded in the registry.25
(3) The effectiveness of a tax credit transfer as between the transferor and26
the transferee shall be provided by agreement of the parties or, in the absence of an27
agreement, in accordance with the provisions of the Louisiana Civil Code and its28
ancillaries.29 ENROLLEDHB NO. 377
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E. Disallowance and recapture of tax credits. A tax credit shall be1
disallowed and recaptured if the department or state agency issuing the tax credit2
finds that an individual or entity obtained a tax credit in violation of the provisions3
of the statute authorizing issuance of the tax credit, including but not limited to fraud4
or misrepresentation. Any tax credit previously granted to an individual or entity but5
later disallowed may be recovered by the secretary pursuant to the provisions of R.S.6
47:1561. The provisions of this Subsection are in addition to and shall not limit the7
authority of the secretary of the department to assess, collect, or recapture under any8
other provision of law.9
(1) If the transferor of a tax credit did not have the right to claim or use the10
tax credit at the time of the transfer, the transferee's recourse shall be against the11
transferor, as provided by agreement of the parties. The department shall warrant the12
validity of the information recorded in the registry for credits issued after January 1,13
2014. A good faith transferee, as determined by the department at the time of14
transfer, that relied on the validity of the credits recorded in the registry shall not be15
subject to the provisions of this Subsection. For purposes of this Subsection, "good16
faith" shall mean honesty in fact and the observance of reasonable commercial17
standards of fair dealing.18
(2) Notwithstanding any other provision of law, the department may19
recapture any amounts and other damages from any individual or entity determined20
not to be in good faith as provided for in Paragraph (1) of this Subsection.21
F. Prescription. (1) In case of disputed title to tax credits, prescription22
against assessment shall be suspended by any of the following:23
(a) The filing of a summary proceeding in any state or federal court.24
(b) A written agreement between all interested taxpayers and the secretary.25
(c) The filing of any pleading, either by the secretary or any taxpayer, with26
the Board of Tax Appeals.27
(2) Prescription shall begin to run again upon the issuance of a final28
administrative decision or a judgment that has become final and nonappealable.29 ENROLLEDHB NO. 377
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G. Registry access. Information contained in the registry and in the1
possession of the department regarding the ownership of tax credits, all transfers of2
tax credits, and the amount of tax credits shall be deemed privileged and confidential3
under the provisions of R.S. 47:1508 and shall not be available to the public;4
however, the provisions of this Subsection shall not be construed to prevent5
information relative to the entity or individual initially issued the tax credit, the6
initial amount of the tax credit, and any information regarding any transfer of the tax7
credit from being released to the public pursuant to a public records request8
submitted to the state agency administering the tax credit program pursuant to the9
Public Records Law, R.S. 44:1 et seq. The data compiled in the registry shall be10
available for cross-referencing by other state agencies; however, state agencies shall11
apply to the department for access to the registry and shall be subject to any12
permissions, restrictions, and conditions as determined by the department. Upon13
application by a transferor, on a form prescribed by the secretary, the department14
shall provide information sufficient to certify the transferor is the record owner of15
tax credits issued on or after January 1, 2014, which are registered in the transferor's16
name in the registry. The secretary shall prescribe the application required by the17
provisions of this Subsection to be submitted by a transferor to certify the record18
owner of tax credits.19
H. Rules. The secretary of the department may promulgate rules and20
regulations in accordance with the Administrative Procedure Act as may be21
necessary to implement the provisions of this Section.22
* * *23
§6007. Motion picture investor tax credit24
* * *25
C. Investor tax credit; specific productions and projects.26
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(4) Transferability of the credit. Any motion picture tax credits not1
previously claimed by any taxpayer against its income tax may be transferred or sold2
to another Louisiana taxpayer or to the office, subject to the following conditions:3
* * *4
(b) Transferors and transferees shall submit to the office, and to the5
Department of Revenue in writing, a notification of any transfer or sale of tax credits6
within thirty ten business days after the transfer or sale of such tax credits. The7
notification shall include the transferor's tax credit balance prior to transfer, a copy8
of any tax credit certification letter(s) issued by the office and the secretary of the9
Department of Economic Development and, the transferor's remaining tax credit10
balance after transfer, all tax identification numbers for both transferor and11
transferee, the date of transfer, the amount transferred, a copy of the credit12
certificate, price paid by the transferee to the transferor, in the case when the13
transferor is a state-certified production, for the tax credits, and any other14
information required by the office or the Department of Revenue. For the purpose15
of reporting transfer prices, the term "transfer" shall include allocations pursuant to16
Paragraph (2) of this Subsection as provided by rule. The office may post on its17
website an average tax credit transfer value, as determined by the office and the18
secretary of the Department of Economic Development to reflect adequately the19
current average tax credit transfer value. The tax credit transfer value means the20
percentage as determined by the price paid by the transferee to the transferor divided21
by the dollar value of the tax credits that were transferred in return. The notification22
submitted to the office Department of Revenue shall include a processing fee of up23
to two hundred dollars per transferee, and any pricing information submitted by a24
transferor or transferee shall be treated by the office and the Department of Revenue25
as proprietary to the entity reporting such information and therefore confidential.26
However, this shall not prevent the publication of summary data that includes no27
fewer than three transactions.28
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§6016. New markets tax credit1
* * *2
F.(1) Any tax credits not previously claimed by any taxpayer against its3
income or franchise tax may be transferred or sold to another Louisiana taxpayer,4
subject to the following conditions:5
* * *6
(b) Transferors and transferees shall submit to the Department of Revenue,7
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, the transferor's remaining10
tax credit balance after transfer, all tax identification numbers for both transferor and11
transferee, the date of transfer, the amount transferred, a copy of the credit12
certificate, price paid by the transferee to the transferor, and any other information13
required by the Department of Revenue. The notification submitted shall include a14
processing fee of up to two hundred dollars per transferee.15
* * *16
§6019. Tax credit; rehabilitation of historic structures17
A.18
* * *19
(3)20
* * *21
(b)(i)22
* * *23
(cc) Transferors and transferees shall submit to the state historic preservation24
office and to the Department of Revenue in writing a notification of any transfer or25
sale of tax credits within thirty ten business days after the transfer or sale of such tax26
credits. The notification shall include the transferor's tax credit balance prior to27
transfer, the credit identification number assigned by the state historic preservation28
office, the remaining balance after transfer, all federal and Louisiana tax29
identification numbers for both transferor and transferee, the date of transfer, the30 ENROLLEDHB NO. 377
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amount transferred, and any other information required by the state historic1
preservation office or the Department of Revenue. Failure to comply with this2
notification provision will result in the disallowance of the tax credit until the parties3
are in full compliance.4
* * *5
§6020. Angel Investor Tax Credit Program6
* * *7
F. Transferability of the credit. Any Angel Investor Tax Credits not8
previously claimed by any taxpayer against its tax may be transferred or sold to9
another Louisiana taxpayer, subject to the following conditions:10
* * *11
(2) Transferors and transferees shall submit to the department and the12
Department of Revenue, in writing, a notification of any transfer or sale of tax credits13
within thirty ten business days after the transfer or sale of such tax credits. The14
notification shall include the transferor's tax credit balance prior to transfer, a copy15
of any tax credit certificate issued by the secretary of the Department of Economic16
Development and, the transferor's remaining tax credit balance after transfer, all tax17
identification numbers for both transferor and transferee, the date of transfer, the18
amount transferred, the price paid by the transferee to the transferor, and any other19
information required by the department or the Department of Revenue. Any pricing20
information submitted by a transferor or transferee shall be treated by the department21
and the Department of Revenue as proprietary to the entity reporting such22
information and therefore confidential. However, this shall not prevent the23
publication of summary data that includes no fewer than three transactions.24
* * *25
§6021. Brownfields Investor Tax Credit26
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I. Transferability of the credit. Any tax credits provided for in this Section1
not previously claimed by any taxpayer against its income tax may be transferred or2
sold to another Louisiana taxpayer, subject to the following conditions:3
* * *4
(2) Transferors and transferees shall submit to the Department of Revenue,5
in writing, a notification of any transfer or sale of tax credits within thirty ten6
business days after the transfer or sale of such tax credits. The notification shall7
include the transferor's tax credit balance prior to transfer, a copy of any tax credit8
certification letter(s) issued by the Department of Environmental Quality, the name9
of the state-certified site, the transferor's remaining tax credit balance after transfer,10
all tax identification numbers for both transferor and transferee, the date of transfer,11
the amount transferred, a copy of the credit certificate, price paid by the transferee12
to the transferor, for the tax credits, and any other information required by the13
Department of Revenue. For the purpose of reporting transfer prices, the term14
"transfer" shall include allocations pursuant to R.S. 47:6007(C)(3) as provided by15
rule.16
* * *17
§6022. Digital interactive media and software tax credit18
* * *19
E. Use of tax credits20
(1) For tax credits earned for expenditures made on or before December 31,21
2011:22
* * *23
(e) Any tax credits allocated to a person and not previously claimed by any24
taxpayer against his Louisiana state income or franchise tax may be transferred or25
sold by such person to another person, subject to the following conditions:26
* * *27
(ii) Transferors and transferees shall submit to the office and Department of28
Revenue, in writing, a notification of any transfer or sale of tax credits within thirty29
ten business days after the transfer or sale of such tax credits. The notification shall30 ENROLLEDHB NO. 377
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include the transferor's tax credit balance prior to transfer, the state-certified1
production number, the name of the state-certified production, the transferor's2
remaining tax credit balance after transfer, all tax identification numbers for both3
transferor and transferee, the date of transfer, the amount transferred, a copy of the4
tax credit certificate, and any other information required by the office or the5
Department of Revenue.6
* * *7
§6034. Musical and theatrical production income tax credit8
* * *9
D.(1) The credit shall be allowed against individual or corporate income tax10
of the companies or financiers of the production or infrastructure project in11
accordance with their share of the credit as provided for in the application for12
certification for the production or infrastructure project. A company or financier13
may, on a one-time basis, transfer the credit, and/or or any refund of an overpayment ,14
to an individual or other entity including without limitation a bank or other lender,15
provided that the transfer shall not be effective until receipt by the Department of16
Revenue of written notice of such transfer. Transferors and transferees shall submit17
to the Department of Revenue, in writing, a notification of any transfer of the tax18
credit within ten business days after the transfer. The credit shall be allowed for the19
taxable period in which expenditures eligible for a credit are expended. Any excess20
of the credit over the income tax liability against which the credit may be applied21
shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary of22
the Department of Revenue shall make a refund of such overpaym ent from the23
current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as24
amended. The right to a refund of any such overpayment shall not be subject to the25
requirements of R.S. 47:1621(B).26
* * *27
Section 2. R.S. 44:4.1(B)(32) is hereby amended and reenacted to read as follows:28
§4.1. Exceptions29
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B. The legislature further recognizes that there exist exceptions, exemptions,1
and limitations to the laws pertaining to public records throughout the revised2
statutes and codes of this state. Therefore, the following exceptions, exemptions, and3
limitations are hereby continued in effect by incorporation into this Chapter by4
citation:5
* * *6
(32) R.S. 47:15, 349, 633.6, 1508, 1515.3, 1516, 1524(G), 1837, 2130, 2327,7
2605, 6026, 90068
* * *9
Section 3. This Act shall become effective upon signature by the governor or, if not10
signed by the governor, upon expiration of the time for bills to become law without signature11
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If12
vetoed by the governor and subsequently approved by the legislature, this Act shall become13
effective on the day following such approval.14
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: