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)]
Nancy Landry HB No. 483
Abstract: Extends the time period for granting income tax credits related to the construction,
repair, or renovation of facilities related to musical and theatrical productions and
performances and limits credits for projects after Jan. 1, 2014, to those located on the
campus of a higher education institution.
Present law establishes five different types of tax credits related to musical and theatrical
productions.
Proposed law repeals two credits: the credit for qualified transportation costs for performance-
related property, and the credit for projects for nonprofit community theaters.
One of the five credits authorized in present law is a credit for the construction, repair, or
renovation of a state-certified musical or theatrical facility infrastructure project. Present law
further provides that the amount of the base investment credit given for investment in such
projects cannot exceed $10,000,000 per project. Further provides that no more than $60,000,000
in tax credits under present law may be granted for these projects per year.
Proposed law retains present law with respect to the limitations on the amount of credits per
project as well as the annual overall program limit.
Present law sunsets the authority to grant credits on Dec. 31, 2013.
Proposed law changes the termination date for the authority to grant tax credits from Dec. 31,
2013, to Dec. 31, 2022.
Present law defines "infrastructure project" as a capital infrastructure project in La. directly
related to the production or performance of musical or theatrical productions, property and
equipment related thereto, any other facility which supports and is a necessary component of
such facility, and any expenditures in the state related to the construction, repair, or renovation of
such project.
Proposed law retains present law definition of "infrastructure project" for those projects which
receive initial certification before July 1, 2013.
Proposed law revises the definition of "infrastructure project" for those projects which receive
initial certification on or after July 1, 2013. Proposed law defines "infrastructure project" as a new or rehabilitated proscenium or black-box theatre infrastructure project located in La. and any
expenditures in the state directly related to the construction, repair, or renovation of such project.
Further, the primary purpose of the proposed facility must be to host live performances and the
facility must have a minimum capacity of 500. Expenditures attributable to areas other than
where live performances will take place may comprise no more than 25% of total qualifying
expenditures.
Proposed law also defines "higher education infrastructure project" in the same manner as
proposed law for projects receiving initial certification on or after July 1, 2013, except limits
projects to those located on the campus of an institution of higher education.
Proposed law defines "infrastructure expenses" as those directly related to a state-certified
infrastructure project or state-certified higher education infrastructure project including land and
land acquisition costs, construction costs, design fees, furniture, fixtures, and equipment
purchased subject to a sale agreement or capital lease.
Proposed law excludes from the definition of "infrastructure expenditures" indirect costs such as
general administrative costs, insurance, or any costs related to the transfer or allocation of tax
credits.
Present law defines "state-certified musical or theatrical production" as a musical or theatrical
production or a series of productions occurring over the course of a twelve-month period, and the
recording or filming of such production, which originate, are developed, or have their initial
public performance before an audience within La., or which have their United States debut
within La., and expenditures related thereto. Proposed law retains present law and adds to the
definition by including concerts, musical tours, ballet, dance, comedy revue, or live variety
entertainment.
Proposed law provides that after Jan. 1, 2014, the availability for tax credits shall be limited to
those infrastructure projects situated on a parcel of land located on the campus of a higher
education institution, which is owned by a higher education campus institution or support
foundation related to the campus primarily operated to benefit and support campus students and
faculty.
Proposed law provides that for higher education musical or theatrical infrastructure projects
which receive initial certification on or before Jan. 1, 2018, a base investment credit may be
earned for expenditures made in La. on or before Jan. 1, 2022, for the construction, repair, or
renovation of a new state-certified higher education musical or theatrical facility infrastructure
project, or for investments made by a company or a financier in such infrastructure project which
are, in turn, expended for such construction, repair, or renovation. One quarter of the total base
investment must be expended on or before Jan. 1, 2020, in order for a project to earn credits for
any remaining estimated base investment provided for in its initial certification letter, as
expenditures are made on or before Jan. 1, 2022.
Proposed law requires that an infrastructure project be complete before any credits are certified. Present law requires that 50% of the total amount of tax credits granted annually shall be
reserved for projects located outside of Jefferson and Orleans parishes. Proposed law excludes
higher education musical or theatrical infrastructure projects from this requirement.
Present law provides for disallowance and recapture of credits.
Proposed law rewords provisions of present law regarding disallowance and recapture, but
retains the substance of present law.
Effective July 1, 2013.
(Amends R.S. 47:6034(A), (B)(4), (8), (9), (10), and (11), (C)(1)(a)(ii)(aa) and (bb), (C)(3),
(E)(1)(e), and (F); Adds R.S. 47:6034(B)(12) and (H); Repeals R.S. 47:6034(C)(1)(b), (e), and
(f))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the original
bill.
1. Changes program eligibility after Jan. 1, 2014, from a project located anywhere in the
state to a project on the campus of a higher education institution.
2. Adds requirements for the timing of expenditures for qualification for tax credits.
4. Revises present law regarding disallowance, recapture and recovery of tax credits.
5. Deletes provisions of present law requiring the Dept. of Economic Development to
report to the legislature with regard to the tax credit program.
6. Deletes the tax credit authorized under present law for certain investments in
nonprofit community theaters.
7. Deletes present law regarding the allowance of transportation costs as certified
expenditures.
8. Adds and revises definitions.
House Floor Amendments to the engrossed bill.
1. Deletes provisions governing recapture of disallowed tax credits by the Dept. of
Revenue.
2. Adds specific definitions of "state-certified musical or theatrical infrastructure
project" for projects receiving initial certification both before and after the effective date of proposed law.
3. Adds July 1, 2013 effective date.