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.
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. 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.