HLS 13RS-938 ORIGINAL
Page 1 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2013
HOUSE BILL NO. 484
BY REPRESENTATIVE LEGER
TAX/TAXATION: Extends the Investor Tax Credit and the Import Export Cargo Credit of
the Ports of Louisiana Tax Credit Program
AN ACT1
To amend and reenact R.S. 47:6036(B)(8) and (13), (C)(1)(b) and (c), (G), and (I)(1)2
(introductory paragraph) and (c) and (2)(a)(i) and to repeal R.S. 47:6036(I)(2)(a)(ii),3
relative to tax credits; to provide relative to the Ports of Louisiana tax credit; to4
provide for the term of the credit; to provide for the activities and projects to which5
the credit applies; to provide with respect to certain determinations and certifications;6
to provide for an effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:6036(B)(8) and (13), (C)(1)(b) and (c), (G), and (I)(1)9
(introductory paragraph) and (c) and (2)(a)(i) are hereby amended and reenacted to read as10
follows: 11
ยง6036. Ports of Louisiana tax credits12
* * *13
B. Definitions.14
For purposes of this Section, the following words shall have the following15
meanings unless the context clearly indicates otherwise:16
* * *17
(8) "Port or port and harbor activity" shall mean and include any activity18
when the trade or business is conducted on premises in which a duly recognized port19
authority has an ownership, leasehold, or other possessory interest and such premises20 HLS 13RS-938 ORIGINAL
HB NO. 484
Page 2 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
are used as part of the operations of a duly recognized port authority, including but1
not limited to any trade or business described in the 1997 North American Industry2
Classification System (NAICS) within Subsector 493 (Warehousing and Storage),3
Industry Number 488310 (Port and Harbor Operations), or Industry Number 4883204
(Marine Cargo Handling),when the trade or business is conducted on premises in5
which a duly recognized port authority has an ownership, leasehold, or other6
possessory interest and such premises are used as part of the operations of a duly7
recognized port authority Industry Number 336611 (Ship Building and Repair), or8
Industry Number 213112 (Support Activities for Oil and Gas Operations), including9
the above trades and businesses as they may hereafter be reclassified in any10
subsequent publication of the NAICS or similar classification system developed in11
conjunction with the United States Department of Commerce and Office of12
Management and Budget.13
* * *14
(13) "Qualifying project" shall mean and include a project to be sponsored15
or undertaken by a public port and one or more investing companies that have has16
a capital cost of not less than five one and one-half million dollars and at which the17
predominant trade or business activity conducted will constitute industrial,18
warehousing, or port and harbor operations and cargo handling, including any port19
or port and harbor activity.20
* * *21
C. Investor tax credit.22
(1)23
* * *24
(b) The Investor Tax Credit provided for in this Subsection shall be issued25
by the Department of Economic Development for a qualifying project if the26
commissioner of administration, after approval of the project by the Joint Legislative27
Committee on the Budget, and the state bond commission certifies to the secretary28
of the department that there will be sufficient revenue received by the state to offset29 HLS 13RS-938 ORIGINAL
HB NO. 484
Page 3 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
the effect to the state of the tax credits provided for the capital costs of the project,1
whether from increased port or port and harbor activity because of the grant of the2
tax credit or otherwise. If the commissioner with the approval of the committee so3
certifies approves the project, then the Department of Economic Development may4
grant a tax credit equal to the total capital costs of a qualifying project to be taken at5
five percent per tax year; however, the total amount of tax credits granted on a6
qualifying project shall not exceed the total cost of the project.7
(c) The tax credit shall be earned by investors at the time expenditures are8
made by an investing company; however, tax credits shall not be applied against a9
tax liability until the project is approved by the department after certification from10
the commissioner with the approval of the committee and the state bond commission11
and capital cost expenditures are certified by the department. The Department of12
Economic Development shall certify capital cost expenditures no less than twice13
during the duration of the qualifying project unless the investing company agrees,14
in writing, to reimburse the Department of Economic Development for the costs of15
any additional certifications.16
* * *17
G. Termination of Investor Tax Credit and Import Export Cargo Tax Credits.18
The provisions of Subsection C Subsections C and I of this Section shall be19
effective until January 1, 2017 January 1, 2020, and no investor tax credit or import20
export cargo credit pursuant to the provisions of this Section shall be granted after21
such date.22
* * *23
I. Import Export Cargo Credit.24
(1) Certification of taxpayer. Only those taxpayers who have received25
certification from the secretary of the Department of Economic Development shall26
be eligible to take the tax credits provided for by this Subsection and then only for27
the taxable year or years and for the amount provided for in the commissioner of28
administration's certification, if approved by the Joint Legislative Committee on the29 HLS 13RS-938 ORIGINAL
HB NO. 484
Page 4 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Budget and the state bond commission, provided for in Item (2)(a)(ii) of this1
Subsection as allocated by the secretary. The secretary shall promulgate rules in2
accordance with the Administrative Procedure Act which establish the process by3
which a taxpayer shall apply for certification.4
* * *5
(c) The secretary shall provide a statement of certification to each taxpayer6
which he has certified as eligible to take the tax credit after approval of the Joint7
Legislative Committee on the Budget and the state bond commission, which shall8
contain the taxable year or years for which the taxpayer is allowed the tax credit and9
the amount of tax credit allocated for such taxable year or years. The secretary shall10
also transmit a copy of such statement to the secretary of the Department of11
Revenue.12
(2)(a)(i) For taxable years beginning on and after January 1, 2009, there13
There shall be allowed a credit against the individual income, corporation income,14
and corporation franchise tax liability of a taxpayer who has received certification15
pursuant to the provisions of Paragraph (1) of this Subsection. The amount of the16
credit shall be equal to the product of multiplying five dollars by the taxpayer's17
number of tons of qualified cargo for the taxable year but only for the total amount18
of the allocation provided to the taxpayer by the secretary of the Department of19
Economic Development for such taxable year.20
* * *21
Section 2. R.S. 47:6036(I)(2)(a)(ii) is hereby repealed in its entirety.22
Section 3. This Act shall become effective on August 1, 2013; if vetoed by the23
governor and subsequently approved by the legislature, this Act shall become effective on24
August 1, 2013, or on the day following such approval by the legislature, whichever is later.25 HLS 13RS-938 ORIGINAL
HB NO. 484
Page 5 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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. 484
Abstract: Extends the termination date of the Investor Tax Credit and the Import Export
Tax Credit from Jan. 1, 2017 to Jan. 1, 2020, reduces the capital cost of a "qualifying
project" from $5 million to $1.5 million, and deletes the requirement of certification
by the commissioner of administration before the credit can be granted.
Present law authorizes the Department of Economic Development [DED] to grant a credit
against corporate income and franchise tax liability equal to the total capital costs of a
"qualifying project", to be taken at 5% per tax year, limited to the total cost of the project.
"Qualifying project" is defined as a project sponsored or undertaken by a public port and one
or more investing companies that has a capital cost of not less than $5 million and at which
the predominant trade or business activity conducted will constitute industrial, warehousing,
or port and harbor operations and cargo handling, including any "port or port and harbor
activity".
"Port or port and harbor activity" is defined as any trade or business described in the 1997
North American Industry Classification System (NAICS) within Subsector 493
(Warehousing and Storage), Industry Number 488310 (Port and Harbor Operations), or
Industry Number 488320 (Marine Cargo Handling).
Proposed law reduces the capital cost of a "qualifying project" from $5 million to $1.5
million and expands the definition of "port or port and harbor activity" to include Industry
Number 336611 (Ship Building and Repair) and Industry Number 213112 (Support
Activities for Oil and Gas Operations).
Present law requires DED to issue the Investor Tax Credit for a "qualifying project" if the
commissioner of administration, after approval of the Joint Legislative Committee on the
Budget (JLCB) and the state bond commission certifies to the secretary of DED that
sufficient revenue will be received by the state to offset the effect to the state of the tax
credits.
Proposed law deletes the requirement of certification by the commissioner of administration
before the credit can be granted by DED and requires DED to obtain only the approval of
the JLCB.
Present law authorizes the secretary of DED to certify "international business entities" for
an Import Export Cargo Credit against the individual and corporate income and corporate
franchise tax equal to the product of multiplying $5 by the "international business entity's"
number of tons of "qualified cargo" for the taxable year, but only for all or a portion of a
fiscal year if the commissioner of administration certifies to the secretary of DED that
sufficient revenue will be received by the state to offset the effect of the tax credits whether
from increased utilization of public port facilities because of the tax credit, and the
certification is approved by the JLCB and the state bond commission.
"International business entity" is defined as a taxpayer entity, all or a portion of whose
activities involve the import or export of breakbulk or containerized cargo to or from
manufacturing, fabrication, assembly, distribution, processing, or warehousing facilities
located within Louisiana. HLS 13RS-938 ORIGINAL
HB NO. 484
Page 6 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law deletes the requirement of certification by the commissioner of administration
before the credit can be granted by DED and requires DED to obtain only the approval of
the JLCB.
Proposed law extends the termination date of the Investor Tax Credit and the Import Export
Credit from Jan. 1, 2017 to Jan. 1, 2020.
Effective August 1, 2013.
(Amends R.S. 47:6036(B)(8) and (13), (C)(1)(b) and (c), (G), (I)(1)(intro. para.) and (c) and
(2)(a)(i); Repeals R.S. 47:6036(I)(2)(a)(ii))