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Prepared by Linda Nugent.
N. Landry HB No. 483
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX CREDITS. Extends authority to grant tax credits for certain state-certified
musical or theatrical facility infrastructure projects
DIGEST
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.
Proposed law provides that infrastructure projects that receive initial certification on or
before January 1, 2014, a base investment credit may be earned for expenditures made in the
state on or before January 1, 2015, for the construction, repair, or renovation of a state-
certified musical or theatrical facility infrastructure project or for investments made by a
company or financier.
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 Page 2 of 3
Prepared by Linda Nugent.
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. Page 3 of 3
Prepared by Linda Nugent.
3. Revises present law regarding disallowance, recapture and recovery of tax
credits.
4. Deletes provisions of present law requiring the Dept. of Economic Development
to report to the legislature with regard to the tax credit program.
5. Deletes the tax credit authorized under present law for certain investments in
nonprofit community theaters.
6. Deletes present law regarding the allowance of transportation costs as certified
expenditures.
7. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the engrossed
bill
1. Extends the date in proposed law from January 1, 2014, to January 1, 2015, for
expenditures made in the state for the construction, repair, or renovation of an
infrastructure project or for investments made by a company or financier.