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Regular Session, 2013
HOUSE BILL NO. 571
BY REPRESENTATIVE ROBIDEAUX
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/TAX REBATES: Provides relative to rebates and rebate programs
AN ACT1
To amend and reenact R.S. 51:1791, 2453(1), (2)(a), (3), (4), (5)(introductory paragraph),2
2454(A), (B)(1)(introductory paragraph), 2457(A)(1), (B), and (C), 2458(7), and3
3121, to enact R.S. 47:6039 and Chapter 5 of Subtitle II of Title 47 of the Louisiana4
Revised Statutes of 1950, to be comprised of R.S. 47:6360 through 6374 and R.S.5
51:1792, 1793, 1794, and 2453(8)(g), 2457(D), (E), (F) and (G) and to repeal R.S.6
51:2453(6), relative to rebates and rebate programs; to establish certain rebate7
programs; to provide for the eligibility of rebate applicants; to provide for the8
amount of rebate payments; to provide for the administration of rebate programs; to9
authorize the promulgation of rules and regulations; to provide for the establishment10
of certain registries; to require the registration of certain information; to authorize11
the collection of a fee; to provide for effectiveness; and to provide for related12
matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 47:6039 and Chapter 5 of Subtitle II of Title 47 of the Louisiana15
Revised Statutes of 1950, to be comprised of R.S. 47:6360 through 6374 are hereby enacted16
to read as follows:17
§6039. Louisiana Tax Credit Registry18
A. Purpose. The intent of this Section is to provide for a centralized19
registration and recordation system for transferable tax credits granted, issued, and20 HLS 13RS-903 ORIGINAL
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authorized by the State of Louisiana. The provisions of this Section shall be known1
and cited as the “Louisiana Tax Credit Registry Act.”2
B. Definitions. For purposes of this Section, the following words and3
phrases shall have the following meaning, unless the context clearly indicates4
otherwise:5
(1) “Department” means the Department of Revenue.6
(2) “Secretary” means the secretary of the Department of Revenue.7
(3) “Tax credit” means any transferable tax credit granted, issued, and8
authorized by the State of Louisiana.9
(4) “Tax credit certificate” means any document granting tax credits issued10
by a state agency administering a tax credit program, such as tax credit certificates11
or final tax credit certification letters, which shall include the name of the individual12
or entity who has been issued the credits, the amount of tax credits issued and the13
applicable identification number.14
(5) “Transfer” means any alienation, assignment, or conveyance of a15
transferable tax credit.16
(6) “Transferee” means an individual or entity that receives a transfer of tax17
credits.18
(7) “Transferor” means an individual or entity that makes a transfer of a tax19
credit.20
C. Administration.21
(1) There is hereby established a central Tax Credit Registry, hereinafter22
referred to as "registry", within the Department of Revenue for the registration and23
recordation of tax credits granted, issued, and authorized by the state.24
(2) The department shall receive a copy of any tax credit certificate granted,25
issued, or authorized by the state, which includes but is not limited to transferable26
credits issued by the Department of Economic Development or the Department of27
Culture, Recreation, and Tourism.28 HLS 13RS-903 ORIGINAL
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(3) The notification submitted to the department shall include a processing1
fee of two hundred dollars per transferee.2
(4) Upon receipt of any tax credit and the processing fee, the department3
shall assign an identification number to each credit, and the name of the individual4
or entity who has been issued the credits, the amount of tax credits issued, the5
applicable identification number, and any other information deemed necessary shall6
be recorded in the registry.7
(5) Notwithstanding any other provision of law to the contrary, no issuance,8
conveyance, transfer, assignment, or alienation of transferable tax credits shall be9
effective as to third parties until it has been recorded in the registry.10
(6) The effectiveness of the conveyance, transfer, assignment, and alienation11
of the transferable tax credits as between the transferor and transferee shall be as12
provided by agreement of the parties or, in the absence of an agreement, in13
accordance with the default provisions of the Louisiana Civil Code and its14
ancillaries.15
D. Special provisions for disallowance and recapture of tax credits.16
(1) Notwithstanding any other provision of law to the contrary, the tax17
credits shall be disallowed if the department or any state agency issuing tax credits18
finds that a taxpayer obtained a tax credit in violation of the provisions of the statute19
authorizing the tax credits, including but not limited to fraud or misrepresentation.20
(2) Any tax credits previously granted to a taxpayer, but later disallowed,21
maybe be recovered by the secretary, as provided by R.S. 47:1561.22
(3) To the extent that the transferor of a tax credit did not have the right to23
claim or use the credit at the time of the transfer, the transferees’ recourse shall be24
against the transferor, as provided by agreement of the parties.25
(4)(a) In case of disputed title to credits, prescription shall be suspended by26
any of the following:27
(i) The filing of a summary proceeding in any state or federal court.28 HLS 13RS-903 ORIGINAL
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(ii) A written agreement between all interested taxpayers and the secretary;1
or2
(iii) The filing of any pleading, either by the secretary or any taxpayer, with3
the Board of Tax Appeals.4
(b) Prescription shall begin to run again upon the issuance of a final5
administrative decision, or by a judgment which has become final and non-6
appealable.7
E. Public Access. Records maintained within the registry shall be available8
for public inspection and shall be exempt from the confidentiality provisions of R.S.9
47:1508.10
F. The department may promulgate rules and regulations in accordance with11
the Administrative Procedure Act as may be necessary to implement the provisions12
of this Chapter.13
G. Louisiana Department of Revenue Tax Fraud Statement. Tax fraud is14
considered to be any disregard of the rules and regulations set forth by the15
department. Tax fraud is investigated and handled on a case by case basis when16
there is reason to believe that the there is a lack of compliance with the rules of the17
department. In circumstances of fraud the maximum penalties shall be applied for18
each specific instance. Fraud is either reported or discovered through audit by the19
department. Fraud is considered a violation and is subject to penalty if proven to be20
intentional. The department is responsible for investigating and proving fraudulent21
activity before the application of penalties.22
* * *23
CHAPTER 5. REBATES AND REBATE PROGRAMS24
§6360. General Administrative Provisions for Rebates25
A.(1) Beginning July 1, 2014, the Department of Revenue may begin making26
rebate payments in the manner provided for in this Section. 27 HLS 13RS-903 ORIGINAL
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(2) For purposes of this Chapter, a rebate may be issued the year the1
Department of Revenue or the Department of Economic Development affirmatively2
issues, approves, grants, or certifies the rebate payment.3
B.(1) Rebates shall be paid according to the following:4
(a) Rebates earned by corporations shall be paid to the corporation.5
(b) Rebates earned by entities not taxed as corporations for federal income6
tax purposes shall be paid to the entity and not the partners or members.7
(c) Rebates earned by individuals in their individual capacity shall be paid8
to the individual.9
(2) Amounts rebated shall bear interest at the rate established pursuant to10
R.S. 13:4202 computed from one hundred and eighty days after the filing date of a11
properly filed rebate claim. No interest on rebates shall be allowed if, the secretary12
proves by clear and convincing evidence that a person has deliberately overpaid a tax13
in order to derive the benefit of the interest allowed by this Section. Payments of14
interest authorized by this Section shall be made from funds derived from current15
collections of the taxes imposed by Title 47 of the Louisiana Revised Statutes of16
1950, as amended.17
C.(1) Notwithstanding any provision of state law to the contrary, if any state18
agency that administers rebate programs finds that a taxpayer obtained a rebate in19
violation of the provisions of the enabling statute, including but not limited to20
misrepresentation, the rebate shall be subject to disallowance, in whole or in part, as21
further provided by rule. Any rebates previously granted to a taxpayer, but later22
disallowed, shall be subject to recapture.23
(2) The amount of rebates paid and later disallowed or rebate payments24
subject to recapture shall be added to any tax liability of the taxpayer collected under25
Title 47 of the Louisiana Revised Statutes, with interest from the date of26
disallowance. The taxpayer shall be barred from receiving further rebates until the27
tax liability has been satisfied. Rebates issued to a taxpayer, but later disallowed,28
may be recovered by the secretary of the Department of Revenue through any29 HLS 13RS-903 ORIGINAL
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collection remedy authorized by R.S. 47:1561 and initiated within five years from1
December thirty-first of the year in which the rebate was granted. If the taxpayer2
that received the rebate is an entity, the Department shall first seek recapture from3
the entity that received the rebate. If the entire amount of the rebate subject to4
recapture cannot be recaptured from the entity, the remaining rebate shall be5
recaptured from the owners of the entity. The amount of the rebate subject to6
recapture shall be allocated among the partners, members or shareholders in7
proportion to their ownership interests at the time the rebate was issued.8
(3) Except as otherwise provided in this Section, the only interest that may9
be assessed and collected on recovered rebates is interest at a rate three percentage10
points above the rate provided in R.S. 9:3500(B)(1), which shall be computed from11
the original date of the return on which the rebate was claimed.12
(4) The provisions of this Subsection are in addition to and shall not limit the13
authority of the secretary of the Department of Revenue to assess or to collect under14
any other provision of law.15
D.(1) Notwithstanding any provision of state law to the contrary, any person16
making an application, claim for rebate, or any report, return, statement, or other17
instrument or providing any other information pursuant to the provisions of any18
rebate program in this Chapter who willfully makes a false or fraudulent application,19
claim, report, return, statement, invoice, or other instrument or who willfully20
provides any false or fraudulent information, any person who willfully aids or abets21
another in making a false or fraudulent application, claim, report, return, statement,22
invoice, or other instrument, or any person who willfully aids or abets another in23
providing any false or fraudulent information, shall be subject to a fraud penalty of24
fifty percent of the amount of the rebate that was granted due to the fraud. This is in25
addition to any disallowance or recapture of the rebate and associated interest.26
(2) Any person against whom such fraud is proven shall be liable for the27
repayment of all rebate amounts which were granted as a result of the false or28 HLS 13RS-903 ORIGINAL
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fraudulent information. Interest shall be due on such repayments at the annual rate1
of fifteen percent.2
(3) Any person who willfully provides any false or fraudulent information,3
or who willfully aids or abets another person in providing false or fraudulent4
information shall not be eligible for any rebate under this Chapter for a period of5
three year from the date the fraud was proven.6
E. The secretary of the Department of Revenue shall make any rebates paid7
under this Section from the current collections of the taxes imposed by Title 47 of8
the Louisiana Revised Statutes of 1950, as amended. The rebate shall constitute an9
overpayment, as defined in R.S. 47:1621(A).10
F. A claim for a rebate payment under this Chapter shall be a return for11
purposes of Chapter 18 of Title 47 of the Louisiana Revised Statutes of 1950, as12
amended.13
G. (1) The Department of Revenue may promulgate such rules and14
regulations in accordance with the Administrative Procedure Act as are necessary to15
implement the provisions of this Section. All rules and regulations promulgated16
pursuant to the provisions of this Section shall be subject to oversight by the House17
Committee on Ways and Means and the Senate Committee on Revenue and Fiscal18
Affairs.19
(2) The Department of Economic Development, in consultation with the20
Department of Revenue, shall promulgate rules and regulations in accordance with21
the Administrative Procedure Act as are necessary to provide for an orderly22
transition for those taxpayers that earned tax credits prior to January 1, 2014 under23
the tax credit and incentive programs that existed under Chapter 1 of Subtitle VII of24
Title 47 of the Louisiana Revised Statutes of 1950, as amended. All rules and25
regulations promulgated shall be subject to oversight by the House Committee on26
Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.27 HLS 13RS-903 ORIGINAL
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§6361. Family Assistance Rebate Program; eligibility of applicants; amount of1
rebate2
A. The Family Assistance Rebate Program, hereinafter referred to as3
"program", is hereby established for purposes of authorizing a rebate payment for4
eligible Louisiana residents. The amount of the rebate shall be determined using the5
eligible resident’s household income and number of dependents in the eligible6
resident's household at the time of application for the rebate.7
B. The department shall establish the amount of rebate payments and income8
thresholds by rule. The department may annually adjust the income threshold and9
rebate amounts if the secretary of the Department of Children and Family Services,10
hereinafter referred to as "department" and "secretary", deems an adjustment is11
necessary. Adjustments in the income threshold and rebate amounts shall be12
published in the Louisiana Register no later than March 15
th
of each year. In13
determining whether an adjustment is necessary, the secretary shall consider all of14
the following:15
(1) The percentage increase in the Consumer Price Index United States city16
average for all urban consumers (CPI-U), as prepared by the United States17
Department of Labor, Bureau of Labor Statistics;18
(2) A change in the most recent Consumer Expenditure Survey data as19
prepared by the United States Department of Labor, Bureau of Labor Statistics; and20
(3) Any other data that the secretary deems necessary to accurately reflect21
the sales tax burden on eligible Louisiana residents.22
C. This program shall be administered by the Department of Children and23
Family Services. Beginning April 1, 2014, an eligible resident may apply for the24
rebate on a form prescribed by the secretary of the department.25
D. If the secretary discovers that an eligible resident who received a rebate26
according to the provisions of this Section is in arrears for payment of child support27
obligations, the Department of Children and Family Services, office of children and28
family services, child support enforcement section is authorized to intercept rebate29 HLS 13RS-903 ORIGINAL
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payments under the provisions of R.S. 46:236.15 after notice of such arrearage has1
been made by certified or regular mail, personal service, or domiciliary service to the2
eligible resident.3
E. The secretary, in consultation with the secretary of the Department of4
Revenue, shall promulgate rules and regulations in accordance with the5
Administrative Procedure Act as are necessary to implement and administer the6
provisions of this Section, including, but not limited to rules regarding the7
determination of the amount of rebate payments and thresholds in Subsection B of8
this Section. All rules shall be subject to oversight by the House Committee on9
Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.10
F. The secretary may enter into agreements, including memoranda of11
understanding and cooperative endeavor agreements with the Department of12
Revenue to assist in the administration of the rebate program. The agreements shall13
be executed by the secretary of each department and shall include all terms necessary14
to administer the rebate program, including but not limited to data sharing between15
the departments.16
G. No Louisiana resident receiving a rebate pursuant to this Section shall be17
eligible for the rebate provided or in R.S. 47:6362.18
§6362. Rebate Program; Assistance for Retirees and Military; eligibility of19
applicants; amount of rebate20
A. A sales tax rebate program is hereby created for Louisiana residents who21
receive retirement benefits, disability benefits, social security benefits, Native22
American income, or active duty military pay that are exempt from Louisiana23
individual income taxation, and who may otherwise incur an increased overall state24
tax burden due to increases in the state sales and use tax rate.25
B. The rebate program established pursuant to the provisions of this Section26
shall be administered by the Department of Revenue. Beginning April 1, 2015, there27
shall be an annual sales tax rebate payment for Louisiana residents who file a federal28
income tax return with an annual federal adjusted gross income of less than sixty29 HLS 13RS-903 ORIGINAL
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thousand dollars for the year in which the rebate is applied for, and who receive1
qualifying income from a qualified retirement system or other qualified source as2
provided for in Subsection C of this Section. Eligible applicants may apply for the3
rebate on a form prescribed by the secretary of the department.4
C.(1) For purposes of the rebate authorized in this Section, qualifying5
income shall include income received from any of the following:6
(a) Louisiana State Employees’ Retirement System.7
(b) Funded Judicial Retirement Plan.8
(c) Non-contributory Judicial Retirement Plan.9
(d) Teachers’ Retirement System of Louisiana.10
(e) Teachers’ Retirement System of Orleans Parish.11
(f) Louisiana School Employees’ Retirement System.12
(g) Louisiana State Police and Retirement System.13
(h) Pensions for Confederate Veterans and Widows of Confederate Veterans.14
(i) Assessors Retirement Fund.15
(j) Clerks’ of Court Retirement and Relief Fund.16
(k) District Attorneys’ Retirement System.17
(l) Municipal Employees’ Retirement System.18
(m) City of Baton Rouge Retirement System.19
(n) Employees’ Retirement System of East Baton Rouge Parish.20
(o) Employees’ Retirement System of Shreveport.21
(p) Parochial Employees’ Retirement System.22
(q) Employees’ Retirement System of Jefferson Parish.23
(r) City of Alexandria Employees’ Retirement System.24
(s) City of Bogalusa Employees’ Retirement System.25
(t) Registrars of Voters Employees’ Retirement System.26
(u) Sheriffs’ Pension and Relief Fund.27
(v) Municipal Police Employees’ Retirement System.28
(w) Firefighters Retirement System.29 HLS 13RS-903 ORIGINAL
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(x) Firemen’s Pension and Relief Fund for the Consolidated Fire Districts1
of Bastrop.2
(y) Firemen’s Pension and Relief Fund for Baton Rouge.3
(z) Firemen’s Pension and Relief Fund for Bogalusa.4
(aa) Firefighters’ Pension and Relief Fund of New Orleans.5
(bb) Policemen’s Pension and Relief Fund for the City of Monroe.6
(cc) Policemen’s Pension and Relief Fund for Alexandria.7
(dd) Policemen’s Pension and Relief Fund for the City of Bossier City.8
(ee) Policemen’s Pension and Relief Fund for the City of Lafayette.9
(ff) Policemen’s Pension and Relief Fund for the Police Department of the10
City of New Orleans.11
(gg) Policemen’s Pension and Relief Fund for Lafayette.12
(hh) Harbor Police Retirement System (Port of New Orleans).13
(ii) Policemen’s Pension and Relief Fund for the City of Shreveport.14
(jj) Bus Drivers’ Pension and Relief Fund for the City of Monroe.15
(kk) Electrical Workers’ Pension and Relief Fund for the City of Monroe.16
(ll) Employees’ Retirement System of the Sewage and Water Board of the17
City of New Orleans.18
(mm) LSU Retirement System.19
(nn) Firemen’s Pension and Relief Fund of Bogalusa, Bossier City, Houma,20
Kenner, Lafayette, Lake Charles, Monroe, Ouachita, Shreveport, and West Monroe.21
(oo) Any retirement system for retirees of the United States Government.22
(pp) Any system provided for under the Railroad Retirement Act of 197423
under 42 U.S.C. 231. 24
(2) Qualifying income shall also include:25
(a) Federal Social Security benefits provided under 42 U.S.C. 301.26
(b) Up to thirty thousand dollars of active duty military pay received by a27
member of the armed forces of the United States for services performed outside this28 HLS 13RS-903 ORIGINAL
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state, for full-time duty which is or will be continuous and uninterrupted for one1
hundred twenty or more consecutive days.2
(c) Income earned by Native Americans living and working on their tribe’s3
reservation, 18 U.S.C. Section 1162.4
(d) Up to six thousand dollars of disability income. "Disability income"5
means payment for permanent total disability as provided for in R.S. 23:1221(2).6
(e) Up to six thousand annual pension and annuity income received by7
residents sixty-five years of age or older.8
D.(1) The department shall establish an initial table of rebate amounts by9
rule. Thereafter, the department shall annually adjust the rebate amounts by adopting10
a new schedule of rebate amounts and shall publish the new schedule in the January11
issue of the Louisiana Register. In determining the annual schedule of rebate12
amounts, the secretary shall consider all of the following:13
(a) The percentage increase in the Consumer Price Index United States city14
average for all urban consumers (CPI-U), as prepared by the United States15
Department of Labor, Bureau of Labor Statistics;16
(b) Any relevant changes in the most recent Consumer Expenditure Survey17
data as prepared by the United States Department of Labor, Bureau of Labor18
Statistics; and19
(c) Any other data that the secretary deems necessary to accurately reflect20
the sales tax burden on eligible Louisiana residents.21
(2) The income threshold brackets provided for in Subsection B of this22
Section shall be adjusted annually for each calendar year by the percentage increase23
in the Consumer Price Index United States city average for all urban consumers24
(CPI-U), as prepared by the United States Department of Labor, Bureau of Labor25
Statistics.26
E. The secretary of the department may promulgate rules and regulations in27
accordance with the Administrative Procedure Act as are necessary to administer the28 HLS 13RS-903 ORIGINAL
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rebate program. All rules shall be subject to oversight by the House Committee on1
Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.2
F. The secretary shall make the rebate payments authorized by this Section3
from the current collections of the taxes imposed under Subtitle II of Title 47 of the4
Louisiana Revised Statutes of 1950, as amended.5
G. No Louisiana resident receiving a rebate pursuant to this Section shall be6
eligible for the rebate provided or in R.S. 47:6362.7
H. The rebate provided for in this Section shall be subject to the provisions8
of R.S. 47:6360.9
§6363. Rebate for local inventory taxes paid10
A. There shall be allowed a rebate for ad valorem taxes paid to political11
subdivisions on inventory held by manufacturers, distributors, and retailers and on12
natural gas held, used, or consumed in providing natural gas storage services or13
operating natural gas storage facilities. The rebate provided for in this Section shall14
be subject to the provisions of R.S. 47:6360.15
B. The term "manufacturer" as used herein means a person engaged in the16
business of working raw materials into wares suitable for use or which gives new17
shapes, qualities, or combinations to matter which already has gone through some18
artificial process. The term "distributor" as used herein means a person engaged in19
the sale of products for resale or further processing for resale. The term "retailer" as20
used herein means a person engaged in the sale of products to the ultimate consumer.21
C. If the Department of Revenue has reason to believe that the assessment22
upon which the ad valorem tax on inventory or natural gas was paid was not based23
upon fair market value, the department may appeal the assessment to the Louisiana24
Tax Commission, hereinafter "commission", for a redetermination of the assessment.25
If the commission determines that the assessment was more than five percent above26
fair market value, the commission shall authorize and direct the collector to correct27
the assessment on the tax roll and the Department of Revenue shall reduce the rebate28
accordingly.29 HLS 13RS-903 ORIGINAL
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D. The amount of the rebate shall be equal to the amount of inventory taxes1
paid to political subdivisions.2
§6364. Rebate for taxes paid with respect to vessels in Outer Continental Shelf3
Lands Act Waters4
A. There shall be allowed a rebate for ad valorem taxes paid without protest5
to political subdivisions on vessels in Outer Continental Shelf Lands Act Waters as6
certified to the assessor pursuant to R.S. 47:1956(B) within the calendar year7
immediately preceding the taxable year of assessment of such vessel. For purposes8
of this Section, ad valorem taxes shall be deemed to be paid to political subdivisions9
when they are paid without protest.10
B. For purposes of the rebate provided for in this Section, the term "vessel"11
shall include ships, oceangoing tugs, towboats, and barges. The term "Outer12
Continental Shelf Lands Act Waters" shall have the meaning ascribed to it in R.S.13
47:1702.14
C. The amount of the rebate shall be equal to the amount of the ad valorem15
taxes paid on Outer Continental Shelf Lands Act Waters vessels paid to political16
subdivisions.17
D. Nothing in this Section and no taxes paid by a taxpayer relative to any18
vessel, as defined herein, shall in any way prohibit a taxpayer from the payment of19
ad valorem taxes under protest or to otherwise resist the collection of such ad20
valorem taxes. Further, nothing in this Section shall affect, define, interpret, in21
whole or in part, or otherwise determine the applicability of the international trade22
exemption in Article VII, Section 21(C)(16) of the Constitution of Louisiana or any23
other applicable rights, exemptions, exclusions, preemptions, or peremptions under24
the Constitution of Louisiana as amended, the Constitution of the United States as25
amended, all treaties and executive agreements of the United States, all intrastate26
agreements and compacts between Louisiana and other states, all laws of Louisiana27
as amended, and all laws of the United States of America as amended.28 HLS 13RS-903 ORIGINAL
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E. The rebate provided for in this Section shall be subject to the provisions1
of R.S. 47:6360.2
§6365. Rebates for motion picture investors3
A. Purpose. The primary objective of this Section is to encourage4
development in Louisiana of a strong capital and infrastructure base for motion5
picture production in order to achieve an independent, self-supporting industry. This6
objective is divided into immediate and long-term objectives as follows:7
(1) Immediate objectives are to:8
(a) Attract private investment for the production of motion pictures in9
Louisiana.10
(b) Develop a tax and capital infrastructure which encourages private11
investment. This infrastructure will provide for state participation in the form of12
rebates to encourage investment in state-certified productions.13
(2) Long-term objectives are to:14
(a) Encourage increased employment opportunities within this sector and15
increased global competitiveness with other states in fully utilizing economic16
development options within the motion picture industry.17
(b) Encourage new education curricula in order to provide a labor force18
trained in all aspects of film and digital production.19
B. Definitions. For the purposes of this Section:20
(1) "Base investment" means cash or cash equivalent investment made and21
used for production expenditures in the state for a state-certified production.22
(2) "Box rental" means private property owned by an employee or individual23
contractor and leased to a state-certified production for use in Louisiana on the state-24
certified production, noted as additional income on a W2 or 1099 tax form.25
(3) "Expended in the state" means an expenditure to lease immovable26
property located in the state; an expenditure as compensation for services performed27
in the state; or an expenditure to purchase or lease tangible personal property within28
the state where the transaction is subject to the state sales or lease tax provisions of29 HLS 13RS-903 ORIGINAL
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Title 47 of the Louisiana Revised Statutes of 1950. A transaction that is subject to1
the state sales or lease tax provisions of Title 47 of the Louisiana Revised Statutes2
of 1950 shall include transactions which are also subject to a statutory exclusion or3
exemption.4
(4) "Expenditure" means actual cash or cash equivalent exchanged for goods5
or services.6
(5) "Headquartered in Louisiana" means a corporation incorporated in7
Louisiana or a partnership, limited liability company, or other business entity8
domiciled and headquartered in Louisiana for the purpose of producing nationally9
or internationally distributed motion pictures as defined in this Section.10
(6) "Motion picture" means a nationally or internationally distributed11
feature-length film, video, television pilot, television series, television movie of the12
week, animated feature film, animated television series, or commercial made in13
Louisiana, in whole or in part, for theatrical viewing or television viewing, or any14
digital online platform as approved by the office. The term "motion picture" shall15
not include the production of television coverage of news and athletic events.16
(7) "Motion picture production company" means a company engaged in the17
business of producing nationally or internationally distributed motion pictures as18
defined in this Section. Motion picture production company shall not mean or19
include any company owned, affiliated, or controlled, in whole or in part, by any20
company or person which is in default on a loan made by the state or a loan21
guaranteed by the state, nor with any company or person who has ever declared22
bankruptcy under which an obligation of the company or person to pay or repay23
public funds or monies was discharged as a part of such bankruptcy.24
(8) "Office" means the office of entertainment industry development in the25
Department of Economic Development provided for in R.S. 51:938.1.26
(9) "Payroll" means all salary, wages, and other compensation, including27
benefits paid to an employee for services relating to a state-certified production and28
taxable in this state. For applications received prior to August 1, 2013, "payroll" for29 HLS 13RS-903 ORIGINAL
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purposes of the additional rebate for Louisiana-resident payroll shall exclude any1
portion of an individual salary in excess of one million dollars. For applications2
received on or after August 1, 2013, payroll expenditures shall be limited to one3
million dollars per person, per state-certified production for each employee reported4
on a Form W2. Payments made to loan out companies or independent contractors5
reported on a Form 1099 shall also be subject to a limitation of one million dollars,6
per person, per state-certified production.7
(10) "Production expenditures" means preproduction, production, and8
postproduction expenditures in this state directly relating to a state-certified9
production, including the following: set construction and operation; wardrobes,10
makeup, accessories, and related services; costs associated with photography and11
sound synchronization, lighting, and related services and materials; editing and12
related services; rental of facilities and equipment; leasing of vehicles; costs of food13
and lodging; digital or tape editing, film processing, transfer of film to tape or digital14
format, sound mixing, special and visual effects, box rentals; and payroll. This term15
shall not include expenditures for marketing and distribution, non-production related16
overhead, amounts reimbursed by the state or any other governmental entity, costs17
related to the transfer of tax credits or rebates, amounts that are paid to persons or18
entities as a result of their participation in profits from the exploitation of the19
production, the application fee, or state or local taxes. The cost of customization or20
custom development of a tangible good specifically designed for use by a state-21
certified production in Louisiana shall not be an eligible production expense, unless22
the customization services are performed in Louisiana. For applications received on23
or after August 1, 2013, the term "production expense" shall not include expenditures24
for airfare, finance fees, bond fees, loan interest, or insurance premiums.25
(11) "Related party transaction" means a transaction between parties that are26
deemed to be related by common ownership or control, under generally accepted27
auditing principles. Related party transaction expenditures may be subject to28 HLS 13RS-903 ORIGINAL
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limitations, as provided for by rules promulgated by the Department, in accordance1
with the provisions of the Administrative Procedure Act.2
(12) "Resident" or "resident of Louisiana" means a natural person domiciled3
in the state. A person who maintains a permanent place of abode within the state and4
spends in the aggregate more than six months of each year within the state shall be5
presumed to be domiciled in the state.6
(13) "Secretary" means the secretary of the Department of Economic7
Development.8
(14) "Source within the state" means a physical facility in Louisiana,9
operating with posted business hours and employing at least one full-time equivalent10
employee.11
(15) "Special events" means an event that occurs irrespective of filming,12
such as Mardi Gras, music festivals, concerts or other similarly situated events.13
(16) "Special event production expenditures" means only costs directly14
related to filming the special event shall qualify for tax credits. Costs that are15
indirectly related to filming shall not qualify for tax credits, including but not limited16
to artist compensation for festival or convert appearances and costs associated with17
the usual activities of a reality show or documentary.18
(17) "State" means the state of Louisiana.19
(18) "State-certified production" shall mean a production approved by the20
office and the secretary which is produced by a motion picture production company21
domiciled and headquartered in Louisiana and which has a viable multi-market22
commercial distribution plan.23
C. Investor rebate; specific productions and projects.24
(1) There is hereby authorized a rebate for Louisiana taxpayers for25
investment in state-certified productions. The rebate shall be earned by investors26
when certified by the office and the secretary. For state-certified productions,27
expenditures shall be certified no more than twice during the duration of a state-28
certified production unless the motion picture production company agrees to29 HLS 13RS-903 ORIGINAL
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reimburse the office for the costs of any additional certifications. The rebate shall1
be calculated as a percentage of the total base investment dollars certified per2
project.3
(a) For state-certified productions approved by the office and the secretary4
on or after July 1, 2009:5
(i) If the total base investment is greater than three hundred thousand dollars,6
each investor shall be allowed a rebate of thirty percent of the base investment made7
by that investor. For applications received on or after August 1, 2013, payroll8
expenditures shall be limited to one million dollars per person, per state certified9
production for each employee reported on a Form W2. Payments made to loan out10
companies or independent contractors reported on a Form 1099 shall also be subject11
to a limitation of one million dollars, per person, per state certified production.12
(ii) To the extent that base investment is expended on payroll for Louisiana13
residents employed in connection with a state-certified production, each investor14
shall be allowed an additional rebate of five percent of such payroll. However, if the15
payroll to any one person exceeds one million dollars, this additional rebate shall16
exclude any salary for that person that exceeds one million dollars.17
(b) Motion picture investor rebates associated with a state-certified18
production shall never exceed the total base investment in that production.19
(c) An applicant shall not receive any other incentive administered by the20
Department of Economic Development for any expenditures for which the applicant21
has received a rebate under this Section.22
D. Certification and administration.23
(1)(a) The secretary of the Department of Economic Development and the24
office shall determine through the promulgation of rules the minimum criteria that25
a project must meet in order to qualify according to this Section. The secretary and26
the office, and the division of administration shall determine through the27
promulgation of rules the minimum criteria that a project must meet in order to28
qualify according to this Section. All rules promulgated pursuant to the provisions29 HLS 13RS-903 ORIGINAL
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of this Section shall be subject to oversight by the House Committee on Ways and1
Means and the Senate Committee on Revenue and Fiscal Affairs.2
(b) The secretary and the office shall determine, through the promulgation3
of rules, an appeals process in the event that an application for or the certification of4
motion picture production rebate is denied. The office shall promptly provide5
written notice of such denial to the Senate Committee on Revenue and Fiscal Affairs6
and the House Committee on Ways and Means.7
(c) When determining which productions may qualify, the office and the8
secretary of the Department of Economic Development shall take the following9
factors into consideration:10
(i) The impact of the production on the immediate and long-term objectives11
of this Section.12
(ii) The impact of the production on the employment of Louisiana residents.13
(iii) The impact of the production on the overall economy of the state.14
(2)(a) Application. An applicant for the motion picture investor rebate shall15
submit an application for initial certification to the office and the secretary of the16
Department of Economic Development that includes the following information:17
(i) For state-certified productions the application shall include:18
(aa) The multi-market commercial distribution plan.19
(bb) A preliminary budget including estimated Louisiana payroll and20
estimated base investment.21
(cc) The script or synopsis.22
(dd) A list of the principal creative elements, including the cast, producer,23
and director.24
(ee) Estimated start and completion dates.25
(b) If the application is incomplete, additional information may be requested26
prior to further action by the office or the secretary of the Department of Economic27
Development. An application fee shall be submitted with the application based on28
the following:29 HLS 13RS-903 ORIGINAL
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(i) Two-tenths of one percent times the estimated total incentive tax credits.1
(ii) The minimum application fee is two hundred dollars, and the maximum2
application fee is five thousand dollars.3
(c) The office and the secretary shall submit their initial certification of a4
project as a state-certified production to investors and to the secretary of the5
Department of Revenue indicating the total base investment which shall be expended6
in the state on the state-certified production. The initial certification shall include7
a unique identifying number for each state-certified production.8
(d) Prior to any final certification of the state-certified production, the9
motion picture production company shall submit to the office and the secretary an10
audit of the production expenditures certified by an independent certified public11
accountant approved by the office, as determined by rule. The office and the12
secretary shall review the audit, the production expense details, and may require13
additional information needed to make a determination. Upon approval of the audit,14
the office and the secretary shall issue a final rebate certification letter indicating the15
amount of the rebate certified for the state-certified production to the investors. The16
rules required by this Subparagraph shall, at a minimum, require that:17
(i) The auditor shall be a certified public accountant licensed in the state of18
Louisiana and shall be an independent third party, not related to the producer. The19
auditor's opinion shall disclose all non-audit services provided for a state-certified20
production and independence shall be compromised, and an audit rejected if either21
consulting services or a tax credit assessments are performed, in addition to an audit22
of expenditures.23
(ii) The auditor's opinion shall be addressed to the party which has engaged24
the auditor (e.g., directors of the production company, producer of the production).25
(iii) The auditor's name, address, and telephone number shall be evident on26
the report.27
(iv) The auditor's opinion shall be dated as of the completion of the audit28
fieldwork. 29 HLS 13RS-903 ORIGINAL
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(v) The audit shall be performed in accordance with auditing standards1
generally accepted in the United States of America and the auditor shall have2
sufficient knowledge of accounting principles and practices generally recognized in3
the film and television industry.4
(e) At the time of final certification, the office shall submit the final5
certification letter to the Department of Revenue on behalf of the investor who6
earned the rebate. The amount of the rebate shall be eighty five percent of the face7
value of the rebates. Upon receipt of the final rebate certification letter and any8
necessary additional information, the secretary of the Department of Revenue shall9
make payment to the company, or its irrevocable designee, which may include but10
not be limited to a bank or other lender, in the amount to which he is entitled from11
the current collections of the taxes collected pursuant to Chapter I, of Subtitle II of12
this Title, as amended.13
(f) In addition to the requirements of Subparagraph (d) of this Paragraph,14
prior to any final certification of a state-certified production or infrastructure project,15
the motion picture production company or infrastructure project applicant shall16
submit to the office a notarized statement demonstrating conformity with, and17
agreeing to, the following:18
(i) To pay all undisputed legal obligations the film production company has19
incurred in Louisiana.20
(ii) To publish, at completion of principal photography, a notice at least once21
a week for three consecutive weeks in local newspapers in regions where filming has22
taken place in order to notify the public of the need to file creditor claims against the23
film production company by a specified date.24
(iii) That the outstanding obligations are not waived should a creditor fail to25
file by the specified date.26
(iv) To delay filing a claim for the film production tax credit until the office27
delivers written notification to the secretary of the Department of Revenue that the28
film production company has fulfilled all requirements for the rebate.29 HLS 13RS-903 ORIGINAL
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(3) The secretary of the Department of Revenue, in consultation with the1
office and the secretary of the Department of Economic Development shall2
promulgate such rules and regulations as are necessary to carry out the intent and3
purposes of this Section in accordance with the general guidelines provided herein.4
(4)(i) Any taxpayer applying for the rebate shall be required to reimburse the5
office for any audits required in relation to granting the rebate.6
(ii)(aa) The production application fee provided for in Subparagraph (2)(b)7
of this Subsection received by the office shall be deposited upon receipt in the state8
treasury. After compliance with the requirements of Article VII, Section 9(B) of the9
Constitution of Louisiana relative to the Bond Security and Redemption Fund and10
prior to any money being placed into the general fund or any other fund, an amount11
equal to that deposited as required by this Item shall be credited by the treasurer to12
a special fund hereby created in the state treasury to be known as the Entertainment13
Promotion and Marketing Fund. The money in the fund shall be appropriated by the14
legislature to be used solely for promotion and marketing of Louisiana's15
entertainment industry.16
(bb) The money in the fund shall be invested by the treasurer in the same17
manner as money in the state general fund and interest earned on the investment of18
the money shall be credited to the fund after compliance with the requirements of19
Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond20
Security and Redemption Fund. All unexpended and unencumbered money in the21
fund at the end of the year shall remain in the fund.22
(5) A motion picture production company applying for the additional rebate23
for the employment of Louisiana residents must remit a schedule to the Department24
of Revenue, in a machine-sensible format approved by the secretary of the25
Department of Revenue, that includes the following information: the names of all26
persons who received salary, wages, or other compensation for services performed27
in Louisiana in connection with the state-certified production, and the address,28 HLS 13RS-903 ORIGINAL
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taxpayer identification number, permanent address of, and the amount of1
compensation for services performed in Louisiana received by each such person.2
(6) With input from the Legislative Fiscal Office, the office shall prepare a3
written report to be submitted to the Senate Committee on Revenue and Fiscal4
Affairs and the House of Representatives Committee on Ways and Means no less5
than sixty days prior to the start of the Regular Session of the Legislature in 2007,6
and every second year thereafter. The report shall include the overall impact of the7
rebates, the amount of the rebates issued, the number of net new jobs created, the8
amount of Louisiana payroll created, the economic impact of the rebates and film9
industry, and any other factors that describe the impact of the program.10
(7) The Department of Economic Development may request an additional11
audit of the expenditures submitted by the motion picture production company at the12
cost of the motion picture production company.13
(8) As a condition for receiving certification of rebates under this Section,14
state-certified productions may be required to display an animated state brand or15
logo, or both, which includes a fleur de lis as prescribed by the secretary of the16
Department of Economic Development as long as the animated state brand or logo17
is not contrary to any rule or regulation of the Federal Communications Commission.18
E. The rebate provided for in this Section shall be subject to the provisions19
of R.S. 47:6360.20
§6366. Rebate for property taxes paid by certain telephone companies; fund21
A. Pursuant to the provisions of this Section, there shall be allowed a rebate22
for, and in an amount equal to, forty percent of the aggregate ad valorem taxes paid23
to political subdivisions of this state after December 31, 2000, by a telephone24
company, as defined in R.S. 47:1851(Q), with respect to such telephone company's25
public service properties, as defined in R.S. 47:1851(M), which are assessed by the26
Louisiana Tax Commission at twenty-five percent of fair market value pursuant to27
R.S. 47:1854. The rebate provided for in this Section shall be subject to the28
provisions of R.S. 47:6360.29 HLS 13RS-903 ORIGINAL
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B.(1)(a) The avails of sales and use taxes imposed pursuant to R.S. 47:302,1
321, and 331 attributable to the furnishing of interstate and international2
telecommunication services, as both those terms are defined in Chapter 2 of Subtitle3
II of this Title, shall be credited to the Bond Security and Redemption Fund, and4
after a sufficient amount is allocated from that fund to pay all of the obligations5
secured by the full faith and credit of the state which become due and payable within6
any fiscal year, the treasurer shall deposit an amount of avails as determined7
pursuant to Subparagraph (b) of this Paragraph into a special fund which is hereby8
created and established in the state treasury and known as the "Telephone Company9
Property Assessment Relief Fund", hereinafter the "fund".10
(b) The amount of such avails shall be determined by the secretary, by rule,11
using industry data as available at the time the fund was originally created, and as12
had been published by the Federal Communications Commission. The secretary13
shall adopt and promulgate such rule no later than March 1, 2006, and the rule shall14
be effective for tax periods starting on or after July 1, 2006.15
(2) The monies in the fund shall be used solely and exclusively for the16
purpose of providing funds to pay the rebates as provided in this Section. The17
treasurer shall annually transfer to the state general fund an amount equal to the18
rebates issued pursuant to this Section.19
(3) The monies in the fund shall be invested by the treasurer in the same20
manner as the monies in the state general fund. Interest earned on investment of21
monies in the fund shall be deposited in and credited to the fund. Unexpended and22
unencumbered monies in the fund at the close of each fiscal year shall remain in the23
fund.24
(4) Notwithstanding any other provision of this Section to the contrary, in25
any fiscal year in which the balance in the fund which is available for appropriation,26
net of any credits or rebates previously allowed pursuant to this Section, does not27
equal or exceed the total amount of the rebates taken for that fiscal year pursuant to28
this Section, the rebates allowed in the succeeding fiscal year shall be29 HLS 13RS-903 ORIGINAL
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proportionately reduced by the amount of the shortfall; however, any reduction may1
be carried forward to any succeeding fiscal year. The secretary shall determine the2
amount of any reductions required pursuant to this Subsection.3
§6367. Rebate; rehabilitation of historic structures4
A.(1)(a) There shall be a rebate for the amount of eligible costs and expenses5
incurred during the rehabilitation of a historic structure located in a downtown6
development or a cultural product district. The rebate shall not exceed twenty-five7
percent of the eligible costs and expenses of the rehabilitation. No taxpayer, or any8
entity affiliated with such taxpayer, shall receive more than five million dollars of9
rebate for any number of structures rehabilitated within a particular downtown10
development or cultural product district.11
(b) The rebate for qualified rehabilitation expenditures is earned only in the12
year in which the property attributable to the expenditures is placed in service.13
(2)(a) In order to qualify for the rebate, the historic structure located in the14
downtown development or cultural product district shall also be listed on the15
National Register of Historic Places or be certified by the state historic preservation16
office as contributing to the historical significance of the district.17
(b) Eligible structures must be nonresidential real property or residential18
rental property.19
(c) A fee shall be charged by the state historic preservation office of two20
hundred fifty dollars per application.21
B.(1) Definitions. For purposes of this Section, the following words and22
phrases shall have the meanings ascribed to them in this Subsection:23
(a) "Cultural product district" shall mean a district designated by a local24
governing authority in accordance with law for the purpose of revitalizing a25
community by creating a hub of cultural activity, including affordable artist housing26
and workspace. The Department of Culture, Recreation and Tourism shall develop27
standard criteria for cultural product districts. Such criteria shall include that the28
district must be geographically contiguous and distinguished by cultural resources29 HLS 13RS-903 ORIGINAL
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that play a vital role in the life and cultural development of a community. The1
district shall focus on a cultural compound, a major art institution, art and2
entertainment businesses, an area with arts and cultural activities or cultural or3
artisan production and be engaged in the promotion, preservation, and educational4
aspects of the arts and culture of the locale and contribute to the public through5
interpretive and educational uses. The Department of Culture, Recreation and6
Tourism may determine whether or not a district complies with this definition.7
(b) "Downtown development district" shall mean a downtown development8
district or central business development district created by law, pursuant to law, or9
by ordinance adopted prior to January 1, 2002, in a home rule charter municipality.10
(c) "Eligible costs and expenses" shall mean qualified rehabilitation11
expenditures as defined in Section 47c(2)(A) of the Internal Revenue Code of 1986,12
as amended, except that "substantially rehabilitated" shall mean that the qualified13
rehabilitation expenditures must exceed ten thousand dollars.14
(2) Federal law terms. Except as otherwise provided or clearly appearing15
from the context, any term used in this Section shall have the same meaning as when16
used in a comparable context in federal law.17
C. The rebate provided for in this Section shall be subject to the provisions18
of R.S. 47:6360.19
D. The provisions of this Section shall be effective for the taxable years20
ending prior to January 1, 2016.21
§6368. Rebate; School Readiness Child Care Expense Program22
A.(1) The School Readiness Child Care Expense Program, hereinafter23
"program", is hereby established for purposes of authorizing a rebate payment for24
eligible child care providers and child care facilities which participate in the quality25
rating system and which provide quality child care to children who are five years of26
age or less. For purposes of qualifying for the rebate authorized pursuant to the27
provisions of this Section, applicants must meet all program requirements and28
restrictions as provided for in Subsection of this Section. The amount of the29 HLS 13RS-903 ORIGINAL
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rebate shall be based on the quality rating awarded to an eligible child care facility1
by the quality rating system.2
(2) The department, by rule, shall establish the amount of the rebate and the3
qualifying criteria for eligible applicants for the rebate. The department may4
annually adjust rebate amounts for each calendar year by the percentage increase in5
the Consumer Price Index United States city average for all urban consumers6
(CPI-U), as prepared by the United States Department of Labor, Bureau of Labor7
Statistics, as determined by the secretary of the Department of Revenue on8
December first of the preceding calendar year. Adjustments in rebate payment9
amounts shall be published in the Louisiana Register no later than March 15
th
of each10
year.11
B. The following persons or entities shall be eligible applicants for the rebate12
authorized by this Section:13
(1) A child care facility which the state administrator of the Child Care14
Development Fund determines is eligible to participate in the quality rating system15
according to criteria set forth by rule adopted by the department and which has16
applied for evaluation under such system, and is participating in the system.17
(2) A child care provider who owns an eligible child care facility or18
facilities.19
(3) A child care director enrolled in the state practitioner registry developed20
and maintained by the department, and who is employed in an eligible child care21
facility which participates in the quality rating system.22
(4) An individual who is enrolled in the state practitioner registry developed23
and maintained by the department and who is employed in a child care facility which24
participates in the quality rating system.25
(5) Businesses that make eligible donations to child care facilities.26
C. This program shall be administered by the state agency designated as the27
state administrator of the Child Care Development Fund and responsible for28 HLS 13RS-903 ORIGINAL
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distributing and managing rebates associated with the fund. For purposes of this1
Section, this state agency shall be referred to as "department".2
D. The department shall promulgate rules and regulations in accordance with3
the Administrative Procedure Act as are necessary to develop the rebate program4
established pursuant to the provisions of this Section. All rules promulgated5
according to the provisions of this Section shall be subject to oversight by the House6
Committee on Ways and Means and the Senate Committee on Revenue and Fiscal7
Affairs.8
E. If the department or the Department of Revenue find that a child care9
provider, director, or staff member has obtained a rebate in violation of the10
provisions of this Section, the person awarded the rebate payment shall return the11
rebate payment to the state. The Department of Revenue may recover any rebates12
previously granted to any person or entity but are disallowed as authorized by R.S.13
47:1561.2 due to violation of rules. Persons or entities shall have the right to appeal14
as permitted in 47:1565.15
F. The rebate provided for in this Section shall be subject to the provisions16
of R.S. 47:6360.17
§6369. Rebate; Research and development18
A. The Legislature of Louisiana hereby finds and declares that the health,19
safety, and welfare of the people of this state are dependent upon the continued20
encouragement, development, growth, and expansion of the private sector within the21
state. Therefore, it is declared to be the purpose of this Section to encourage new22
and continuing efforts to conduct research and development activities within this23
state.24
B.(1) Any entity which employs fifty or more persons and claims the federal25
income rebate under 26 U.S.C. §41(a) in the most recently concluded federal tax year26
for increasing research activities shall be allowed a rebate payment for qualified27
research expenses as provided under this Section.28 HLS 13RS-903 ORIGINAL
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(2) Any entity which employs less than fifty persons and claims for the1
taxable year a federal income tax credit pursuant to 26 U.S.C.§41(a) for the most2
recently concluded federal tax year, or meets the requirements of Subparagraph (i)3
of this Paragraph shall be allowed a rebate of qualified research expenses.4
(3) The Department of Economic Development, hereinafter "department",5
shall administer the rebate program provided for in this Section. Applicants for6
rebates authorized pursuant to the provisions of this Section shall submit applications7
to the department with an application fee of two hundred fifty dollars. Rebate8
applications shall include the following:9
(a) A federal income tax return and supporting documentation that shows the10
amount of the federal research credit for the taxable year. If the applicant is claiming11
the rebate authorized in Subsection D of this Section, the applicant shall also remit12
supporting documentation for the federal Small Business Innovation Research Grant.13
(b) The total amount of qualified research expenses and the qualified14
research expenses in this state.15
(c) The total number of persons employed in Louisiana by the applicant and16
the number of persons employed in Louisiana directly engaged in research and17
development.18
(d) The average wages of the persons employed in Louisiana not directly19
engaged in research and development and the average wages of the persons20
employed in Louisiana directly engaged in research and development.21
(e) The average value of benefits received by all persons employed in22
Louisiana.23
(f) The cost of health insurance coverage offered to all persons employed in24
Louisiana.25
(g) At the department's request, the applicant shall allow the department26
access to federal income tax information related to federal research and development27
credits provided directly from the Internal Revenue Se5rvice. This access includes,28 HLS 13RS-903 ORIGINAL
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but is not limited to execution of IRS forms 8821 and 4506 in favor of the1
department.2
(h) Any other information required by the department.3
(i) An applicant who employs less than fifty employees is not required to file4
for the federal income tax credit under 26 U.S.C. §41(a) for increasing research5
activities in order to apply for rebates under this Section if all of the following6
criteria are met:7
(i) The applicant must provide the department with a report from an8
independent certified public accountant licensed in the state of Louisiana finding that9
the applicant would not financially benefit from claiming the federal income tax10
credit under 26 U.S.C. §41(a) for increasing research activities and that the applicant11
is in compliance with the agreed-upon procedures as defined by the department.12
(ii) Applicants that employ less than fifty employees and who do not claim13
the research credit on their federal income tax return for that year shall provide all14
supporting documentation required by the department to show the amount of the15
qualified research expenses for such taxable year.16
(4) The department shall approve or disapprove each application. No rebates17
shall be granted to a applicant under this Section unless the rebate is approved.18
(5) Professional services firms as defined by the department and businesses19
primarily engaged in custom manufacturing and custom fabricating as defined by the20
department shall be ineligible to receive rebates under this Section unless specifically21
invited to participate in the rebate program by the secretary of the department.22
C.(1) For purposes of determining the amount of the rebate payment, an23
"entity" shall be determined by the total number of employees based on the24
aggregate of all affiliated companies.25
(2) The amount of the rebate authorized in this Section shall be equal to26
either:27 HLS 13RS-903 ORIGINAL
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(a) Eight percent of the difference, if any, of the Louisiana qualified research1
expenses for the year minus the base amount, if the applicant is an entity that2
employs one hundred or more persons.3
(b) Twenty percent of the difference, if any, of the Louisiana qualified4
research expenses for the year minus the base amount, if the applicant is an entity5
that employs fifty to ninety-nine persons.6
(c) Forty percent of the Louisiana qualified research expenses for the year,7
if the applicant is an entity that employs fewer than fifty persons.8
D. An applicant who receives a federal Small Business Innovation Research9
Grant as created by the Small Business Innovation Development Act of 1982 (P.L.10
97-219), reauthorized by the Small Business Research and Development11
Enhancement Act (P.L. 102-564), and reauthorized again by the Small Business12
Reauthorization Act of 2000 (P.L. 106-554), shall be allowed a rebate payment in an13
amount equal to forty percent of the award received during the tax year.14
E. As used in this Section, the following terms shall have the meaning15
hereafter ascribed to them, unless the context clearly indicates otherwise:16
(1) "Base amount" shall mean seventy percent of the average annual17
qualified research expenses within Louisiana during the three years preceding the18
federal tax year.19
(2) "Department" shall mean the Department of Economic Development.20
(3) "Person" shall mean a natural person.21
(4) "Qualified research expenses" and "qualified research" shall have the22
same meanings as those terms are defined in 26 U.S.C. §41, as amended.23
F. The department shall administer the provisions of this Section and shall24
have the following powers and duties in addition to those granted by other laws of25
this state:26
(1) To monitor the implementation and operation of this Section and conduct27
a continuing evaluation of the program.28 HLS 13RS-903 ORIGINAL
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(2) To assist any applicant in obtaining the benefits of any incentive or1
inducement program authorized by Louisiana law.2
(3) To promulgate program rules and regulations in consultation with the3
secretary of the Department of Revenue, in accordance with the Administrative4
Procedure Act. Rulemaking oversight for purposes of the Administrative Procedure5
Act shall be conducted by the House Committee on Ways and Means and Senate6
Committee on Revenue and Fiscal Affairs.7
(4) To receive information from the Department of Revenue regarding the8
identity of the applicant and the amount of rebate claimed for any rebates claimed9
pursuant to this Section. Such information shall not be public record and shall be10
subject to the same prohibition of disclosure as in the possession of the Department11
of Revenue.12
(5) To audit all relevant records and accounts of any applicant applying for13
rebates provided for by this Section.14
G.(1) The department shall perform a detailed examination of at least ten15
percent of all applications received prior to the issuance of rebate payments.16
Selection of applications for examination shall be based on either a random sampling17
of applications, the applicant’s business sector, or other selection criteria as18
determined by the department.19
(2) If an applicant's application is selected for examination, the applicant20
shall submit all supporting documentation required by the department that verifies21
the amount of the qualified research expenses incurred in Louisiana for the taxable22
year.23
(3) Upon examination, the department shall disallow any rebates that are not24
substantiated by documentation as required by the Internal Revenue Code, as25
amended; the regulations thereunder, as amended; and applicable case law.26
(4) The applicant bears the burden of proving that the activities for which the27
rebate is claimed meet the Internal Revenue Code Section 41(d) definition of28
qualified research.29 HLS 13RS-903 ORIGINAL
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(5) Nothing in this Subsection shall preclude the department from examining1
a applicant's application for research and development rebates after the issuance of2
rebates. Rebates disallowed following an examination conducted after the issuance3
of such rebates shall be subject to recovery, recapture or offset.4
H. An applicant shall not receive any other incentive administered by the5
Department of Economic Development for any expenditures for which the applicant6
has received a rebate pursuant to this Section.7
I. No rebate shall be allowed pursuant to this Section for research8
expenditures incurred or Small Business Innovation Research Grant funds received9
after December 31, 2019.10
J. The rebate provided for in this Section shall be subject to the provisions11
of R.S. 47:6360.12
§6370. Rebate; Angel Investor Rebate Program13
A. Purpose. The legislature finds that the welfare of the state is enhanced14
by a healthy entrepreneurial business environment and that ready sources of capital15
necessary to support this environment are not currently available. The Angel16
Investor Rebate Program is intended to achieve the following purposes:17
(1) To encourage third parties to invest in early stage wealth-creating18
businesses in the state.19
(2) To expand the economy of the state by enlarging its base of wealth-20
creating businesses.21
(3) To enlarge the number of quality jobs available to retain the presence of22
young people educated in Louisiana.23
B. Administration. (1) Program. Investments made on or after January 1,24
2011, by qualifying individuals or entities that invest in a Louisiana Entrepreneurial25
Business as defined by R.S. 51:2303(5) may apply for, and if qualified, be granted26
a rebate. The administration of rebate applications, certification of eligibility and27
qualification of applicants for rebates, and the provision for these rebates shall be28
known as the Angel Investor Rebate Program, hereinafter referred to as "program".29 HLS 13RS-903 ORIGINAL
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(2) Rules. The program shall be implemented and administered by the1
Department of Economic Development, hereinafter referred to as "department". In2
compliance with the Administrative Procedure Act, the department shall adopt and3
promulgate rules as are necessary for the efficient and effective administration of this4
program in keeping with the purposes for which it is enacted. The department shall5
work closely with the secretary of the Department of Revenue in the development6
and promulgation of rules. The rules shall include provisions for:7
(a) An application process through which the department may certify the8
eligibility of an investor applicant for receipt of the rebate and the qualification of9
an investor to claim the rebate.10
(b) The presentation of an investor's eligibility certification and any other11
documentation required in order to earn or claim a rebate.12
(c) The submission of annual reports by the Louisiana Entrepreneurial13
Business regarding the use of proceeds, number of employees, amount of payroll,14
annual Revenue, and any other information requested by the department.15
C. Qualifications. (1) To qualify for a rebate, the investor and the16
investment shall meet all of the following requirements:17
(a) The investment in the Louisiana Entrepreneurial Business must be an18
investment that is at risk and not secured or guaranteed. "At risk" means that the19
repayment of the investment is entirely dependent on the success of the Louisiana20
Entrepreneurial Business. The funds invested by the applicant cannot have been21
raised as a result of illegal activity.22
(b) For the purposes of the program, an angel investor or investors cannot23
be the principal owner or owners of the business who are involved in the operation24
of the business as a full-time professional activity, nor can their spouses and25
relatives within the third degree of consanguinity or affinity. A principal owner26
means one or more persons who own an aggregate of fifty percent or more of the27
Louisiana Entrepreneurial Business.28 HLS 13RS-903 ORIGINAL
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(c) The use of proceeds from the investment must be used for capital1
improvements, plant equipment, research and development, working capital for the2
business, or other business activity as may be approved by the department. The3
proceeds cannot be used to pay dividends, repay shareholder's loans, redeem shares,4
or repay debt unless approved by the department.5
(d) The investor applicant shall meet the definition of accredited investor6
established by Rule 501 in Regulation D of the General Rules and Regulations7
promulgated under the Securities Act of 1933.8
(e) The investment in the Louisiana Entrepreneurial Business by the9
applicant must be maintained for three years unless otherwise approved by the10
Department of Economic Development.11
(2) To qualify for an angel investor rebate, the Louisiana Entrepreneurial12
Business in which the investment is made shall meet all the following requirements:13
(a) The principal business operations of the business are located in14
Louisiana.15
(b) Prior to the investment, the department has approved the business as one16
which may receive investments which may qualify for a rebate under the program.17
(c) The business must demonstrate that it will be a wealth-creating business18
for Louisiana by demonstrating in its business plan that it will have more than fifty19
percent of its sales from outside Louisiana.20
(d) The business is not a business engaged primarily in retail sales, real21
estate, professional services, gaming or gambling, natural resource extraction or22
exploration, or financial services including venture capital funds.23
D. Rebates. (1) The total amount of rebates granted by the department in24
any calendar year shall not exceed five million dollars. The department shall by rule25
establish the method of allocating available rebates to investors including but not26
limited to a first-come, first-served system, reservation of rebates for a specific time27
period, or other method which the department, in its discretion, may find beneficial28
to the program. If the department does not grant the entire five million dollars in29 HLS 13RS-903 ORIGINAL
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rebates in any calendar year, the amount of residual unused rebates shall carry1
forward to subsequent calendar years and may be granted in any year without regard2
to the five million dollar per year limitation. After the approval of an investor pool,3
the department shall issue a letter identifying the amount of rebates that are available4
to that pool; however, no rebate shall be granted to an investor until the investment5
has been made in the Louisiana Entrepreneurial Business.6
(2)(a) An investor may apply for and, if qualified, be granted a rebate7
payment in the amount approved by the secretary of the department. The amount of8
the rebate shall be based upon the amount of money invested by the investor in the9
Louisiana Entrepreneurial Business, which investment shall not exceed one million10
dollars per year per business and two million dollars total per business. The rebates11
approved by the department shall be granted at the rate of thirty-five percent of the12
amount of the investment with the rebate divided in equal portions for five years.13
(b) After certifying the eligibility of the Louisiana Entrepreneurial Business14
and the amount of the investment, the secretary of the department shall issue a rebate15
certificate, a copy of which is to be attached to the tax return of the angel investor.16
(c) The rebate certificate shall contain the investor's name, address, tax17
identification number, the amount of rebate, the name of the qualifying Louisiana18
Entrepreneurial Business, a statement certifying that the Louisiana Entrepreneurial19
Business was domiciled in Louisiana at the close of the previous calendar year, and20
other information which may be required by the Department of Revenue. The rebate21
certificate, unless rescinded by the department, shall be accepted by the Department22
of Revenue as proof of the rebate.23
(d) The department shall maintain a list of the rebate certificates issued.24
(3)(a) If at the close of any calendar year in the five-year period beginning25
with the first year in which a rebate certificate was issued to an investor, the26
Louisiana Entrepreneurial Business is no longer domiciled in Louisiana, the rebate27
shall be recaptured from the investor unless change of domicile is the result of a28 HLS 13RS-903 ORIGINAL
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merger, consolidation, or other acquisition of such business with or by a party not1
affiliated with the business.2
(b) If at the close of any calendar year in the three-year period beginning3
with the first year a rebate certificate was issued to an investor, the investor transfers4
the equity received in connection with the qualified investment, the rebate shall be5
recaptured from the investor unless the transfer results from any of the following6
circumstances:7
(i) The liquidation of the business issuing the equity;8
(ii) The merger, consolidation, or other acquisition of such business with or9
by a party not affiliated with the business; or10
(iii) The death of the investor.11
E.(1) Any person making an application, claim for rebate, or any report,12
return, statement, or other instrument or providing any other information pursuant13
to the provisions of the Angel Investor Rebate Program who willfully makes a false14
or fraudulent application, claim, report, return, statement, invoice, or other15
instrument or who willfully provides any false or fraudulent information, any person16
who willfully aids or abets another in making a false or fraudulent application, claim,17
report, return, statement, invoice, or other instrument, or any person who willfully18
aids or abets another in providing any false or fraudulent information, shall be guilty,19
upon conviction, of a felony and shall be punished by the imposition of a fine of not20
less than one thousand dollars and not more than fifty thousand dollars or imprisoned21
for not less than two years and not more than five years, or both.22
(2) Any person convicted of a violation of this Section shall be liable for the23
repayment of all rebate amounts which were granted to that person. Interest shall be24
due on such repayments at the rate of fifteen percent per annum.25
F. The rebate provided for in this Section shall be subject to the provisions26
of R.S. 47:6360.27 HLS 13RS-903 ORIGINAL
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§6371. Rebate; Digital interactive media and software1
A. Short title. This Section shall be known and may be referred to as the2
"Louisiana Digital Media and Software Act".3
B. Purpose. The primary objective of this Section is to encourage4
development in Louisiana of a strong capital base for the production of digital5
interactive media products and platforms in order to achieve a more independent,6
self-supporting industry. This objective is divided into immediate and long-term7
objectives as follows:8
(1) Immediate objectives are to:9
(a) Attract private investment for the production of digital interactive media10
products and platforms in this state.11
(b) Develop a tax infrastructure which encourages private investment. This12
infrastructure will provide for state participation in the form of rebates to encourage13
investment in state-certified productions.14
(c) Develop a tax infrastructure utilizing rebates which encourage15
investments in multiple state-certified productions.16
(2) Long-term objectives are to:17
(a) Encourage increased employment opportunities within this sector and18
increased competition with other states in fully developing economic development19
options within digital interactive media products and platforms.20
(b) Encourage new education curricula in order to provide a labor force21
trained in all aspects of digital interactive media.22
(c) Encourage partnerships between digital interactive media developers and23
Louisiana educational institutions.24
C. Definitions. For the purposes of this Section:25
(1) "Base investment" means the actual funds expended in Louisiana by a26
state-certified production as production-related costs for design or development of27
digital interactive media, including costs for payroll and component parts, as defined28
in this Section.29 HLS 13RS-903 ORIGINAL
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(2) "Component parts", with respect to digital interactive media, means all1
elements that are integral to the functioning or development of such products and2
platforms. Some examples of "component parts" are software, computer code, image3
files, music files, audio files, video files, scripts and plays, concept mock-ups,4
software tools, and testing procedures. Component parts shall also include, but not5
be limited to computer servers, workstations, server racks, hard drives, optical6
drives, monitors, keyboards, integrated video and audio equipment, networking7
routers, switches, network cabling, and any other computer-related hardware8
necessary to create or operate a digital interactive media product or platform.9
(3) "Department" means the Louisiana Department of Economic10
Development.11
(4)(a) "Digital interactive media" means products or platforms that are12
intended for commercial production, use, or distribution; that contain at least two of13
the following types of data: text, sound, fixed images, animated images, video, or 3D14
geometry; and that have all of the following three characteristics:15
(i) "Digital" means a system that uses discrete (discontinuous) values16
ordinarily symbolized numerically to represent information for input, processing,17
transmission, and storage. A digital system would be contrasted with an "analog"18
system which uses a continuous range of values to represent information. The term19
"digital" includes, but is not limited to information input, processed, transmitted and20
stored via the Internet.21
(ii) "Interactive" means a digital media system for inputting, processing,22
transmitting, or storing information or data in which users of the system are able to23
respond to the digital media system by inputting, transmitting, processing, or storing24
information or data in response to the information or data provided to them through25
the digital media system. "Digital media system" means communications delivered26
via electronic energy where the information stored, transmitted, or received is in27
digital form.28 HLS 13RS-903 ORIGINAL
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(iii) "Media" means communication tools used to store, transmit, distribute,1
and deliver information and data. The term "media" includes methods and2
mechanisms for information distribution through, but not limited to distributed3
networks, such as the Internet, and through compact disc, CD-ROM, various types4
of DVD, and other removable storage drives and devices.5
(b) Some examples of digital interactive media are:6
(i) Video or interactive games.7
(ii) Simulation software.8
(iii) Interactive educational or training products.9
(iv) Internet sites designed and developed as social media.10
(v) Software applications that provide connectivity and communications11
between mobile devices and digital interactive media web platforms.12
(vi) Technology designed to stream live or pre-recorded video content over13
the Internet to large simultaneous audiences.14
(c) "Digital interactive media" shall not include:15
(i) Software development designed and developed primarily for internal or16
operational purposes of the company.17
(ii) Largely static Internet sites designed to provide information about a18
person, business, company, or firm.19
(iii) Products regulated under the Louisiana Gaming Control Law.20
(5) "Company" means an entity authorized to do business in the state of21
Louisiana and engaged in the business of producing digital interactive media as22
defined in this Section. "Company" shall not mean or include any company owned,23
affiliated, or controlled, in whole or in part, by any company or person subject to any24
of the following:25
(a) Has a contract or application with the Department of Economic26
Development that is in default or noncompliance.27
(b) Is in default on a loan made by the state or a loan guaranteed by the state.28 HLS 13RS-903 ORIGINAL
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(c) Has ever declared bankruptcy under which an obligation of the company1
or person to pay or repay public funds or monies was discharged as a part of such2
bankruptcy.3
(6) "Expended in Louisiana" means an expenditure to lease immovable4
property located within the state; an expenditure as compensation for services5
performed in the state; or an expenditure to purchase or lease tangible personal6
property within the state where the transaction is subject to the state sales or lease tax7
provisions of Title 47 of the Louisiana Revised Statutes of 1950. A transaction that8
is subject to the state sales or lease tax provisions of Title 47 of the Louisiana9
Revised Statutes of 1950 shall include transactions which are also subject to a10
statutory exclusion or exemption.11
(7) "Office" means the office of entertainment industry development in the12
Department of Economic Development as provided in R.S. 51:938.1.13
(8) "Payroll" includes all salary, wages, and other compensation sourced or14
apportioned to Louisiana, including related benefits.15
(9) "Person" means a natural person, corporation, partnership, limited16
partnership, limited liability company, joint venture, trust, estate, or association.17
(10)(a) "Production expenses" means preproduction and production18
expenditures in the state directly relating to a state-certified production including19
without limitation the following: testing software, source code development, patches,20
updates, sprites, three-dimensional models, and level design; costs associated with21
photography and sound synchronization, lighting and related services; rental of22
Louisiana facilities and equipment; purchase of prepackaged audio files, video files,23
photographic, or libraries; purchase of licenses to use pre-recorded audio files, video,24
or photographic files; development costs associated with producing audio files and25
video files to be used in the production of the end product under development.26
(b) "Production expenses" shall not include any of the following:27
(i) Expenditures for or related to marketing, promotion and distribution.28 HLS 13RS-903 ORIGINAL
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(ii) Administrative, payroll, and management services which are not directly1
related to management of the state-certified production.2
(iii) Food, entertainment, and lodging expenses.3
(iv) Amounts that are later reimbursed by the state.4
(v) Costs related to the transfer of rebates.5
(vi) Amounts that are paid to persons or entities as a result of their6
participation in profits from the exploitation of the production.7
(vii) Any application fee, or state or local taxes.8
(11) "Related party transaction" means a transaction between parties that are9
deemed to be related by common ownership or control, under generally accepted10
auditing principles. Related party transaction expenditures may be subject to11
limitations, as provided for by rules promulgated by the Department, in accordance12
with the provisions of the Administrative Procedure Act.13
(12) "Resident" or "resident of Louisiana" means a natural person and, for14
the purpose of determining eligibility for the tax incentives provided by this Section,15
any person domiciled in the state of Louisiana and any other person who maintains16
a permanent place of abode within the state and spends in the aggregate more than17
six months of each year within the state.18
(13) "Secretary" means the secretary of the Louisiana Department of19
Economic Development.20
(14) "State-certified production" shall mean a digital interactive media21
production or a component part thereof approved by the office.22
(15) "Rebate" means the digital interactive media and software development23
rebate authorized by this Section.24
D. Rebate; specific projects.25
(1) For applications for state-certified productions submitted to the office on26
or after July 1, 2009, and subsequently approved by the office and secretary, there27
are hereby authorized rebates for expenditures in Louisiana on a state-certified28
production as follows:29 HLS 13RS-903 ORIGINAL
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(a) Rebates shall be earned at the rate of twenty-five percent of the base1
investment.2
(b) To the extent that base investment is expended on payroll for Louisiana3
residents employed in connection with a state-certified production, additional rebates4
shall be earned at the rate of ten percent of the payroll.5
(2) For rebates earned for expenditures made on or after January 1, 2012, at6
the time of final certification, the office shall submit the final certification letter to7
the Department of Revenue on behalf of the investor who earned the rebate. The8
amount of the rebate shall be eighty five percent of the face value of the rebates.9
Upon receipt of the final rebate certification letter and any necessary additional10
information, the secretary of the Department of Revenue shall make payment to the11
company, or its irrevocable designee, which may include but not be limited to a bank12
or other lender, in the amount to which he is entitled from the current collections of13
the taxes collected pursuant to Chapter I, of Subtitle II of this Title, as amended14
E. Administration. (1) The office may promulgate rules in accordance with15
the Administrative Procedure Act to establish the policies and program elements16
regarding project qualifications of state-certified productions and any other matter17
necessary to carry out the intent and purposes of this Section. Such rules shall be18
subject to oversight by the House Committee on Ways and Means and the Senate19
Committee on Revenue and Fiscal Affairs.20
(2)(a) Application. A company seeking to participate in the rebate program21
shall apply to the department through an application process established by the22
department.23
(b) An application fee shall be submitted with the application based on the24
following:25
(i) Two-tenths of one percent times the estimated total incentive tax credits.26
(ii) The minimum application fee is two hundred dollars, and the maximum27
application fee is five thousand dollars.28 HLS 13RS-903 ORIGINAL
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(3) Certification. (a) The office shall review the company's application and1
any other information which it deems appropriate for determination of the project's2
eligibility for initial certification. For a project deemed eligible, the office shall3
provide an initial certification of the project as a state-certified production to the4
company and to the secretary of the Department of Revenue. The initial certification5
shall be effective for expenditures made no more than six months prior to the date6
of application and shall be valid until the project is completed. The initial7
certification shall include a unique identifying number for each state-certified8
production.9
(b) Prior to final certification of rebates of a state-certified production or any10
portion thereof, but no more than once per calendar year, the company shall submit11
to the office a cost report of production expenditures. The cost report of12
expenditures shall be subject to an agreed-upon procedures engagement conducted13
by a certified public accountant in accordance with statements on standards for14
attestation engagements established by the American Institute of Certified Public15
Accountants. The accountant shall issue a report in the form of procedures and16
findings. The accountant shall be a certified public accountant licensed in the state17
of Louisiana and shall be an independent third party unrelated to the company. The18
agreed-upon procedures shall be established by the office and secretary, with19
assistance from the Society of Louisiana Certified Public Accountants. The20
department may request additional audits of the project expenditures, the cost of21
which shall be borne by the company.22
(c) Upon completion of all or a portion of a state-certified production, the23
office shall review the production expenses and, if approved by the office and24
secretary, issue a final rebate certification letter to the company. The certification25
letter shall include the identifying number assigned to that state-certified production26
in the initial certification.27 HLS 13RS-903 ORIGINAL
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(d) As a condition for receiving certification of rebates under this Section,1
state-certified productions may be required to display the state brand or logo, or both,2
as prescribed by the secretary.3
F. The provisions of this Section shall not apply to any investments or4
expenditures that qualify for rebates under R.S. 47:6007.5
G. A applicant shall not receive any other incentive administered by the6
Department of Economic Development for any expenditures for which the applicant7
has received a rebate or tax rebate under this Section.8
H. The rebate provided for in this Section shall be subject to the provisions9
of R.S. 47:6360.10
§6372. Rebate; Sound recording investor11
A. Purpose. The primary objective of this Section is to encourage12
development in Louisiana of a strong capital and infrastructure base for sound13
recording productions in order to achieve a more independent, self-supporting music14
and sound recording industry. This objective is divided into immediate and long-15
term objectives as follows:16
(1) Immediate objectives are to:17
(a) Attract private investment for the production of musical recordings or18
"sound recordings" in Louisiana.19
(b) Develop a tax and capital infrastructure which encourages private20
investment. This tax infrastructure is to provide for state participation in the form21
of rebates to encourage investment in state-certified sound recording productions and22
infrastructure.23
(c) Develop a tax infrastructure utilizing rebates which encourage24
investments in multiple state-certified production projects.25
(2) Long-term objectives are to:26
(a) Encourage increased employment opportunities within this sector and27
increased global competitiveness by fully utilizing economic development options28
within the music and sound recording industries.29 HLS 13RS-903 ORIGINAL
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(b) Encourage new education curricula in order to provide a labor force1
trained in all aspects of sound recording production.2
(c) Encourage the development of a Louisiana sound recording production3
infrastructure with state-of-the-art facilities.4
B. Definitions. For the purposes of this Section:5
(1) "Base investment" shall mean the actual investment made and expended6
in the state by a state-certified production as production-related costs or as capital7
costs of a state-certified sound recording infrastructure project.8
(2) "Expended in the state" or an "expenditure in the state" means an9
expenditure to acquire property from a source within the state which is subject to10
state sales or use tax, or an expenditure as compensation for services performed11
within the state which is subject to state income tax.12
(3) "Production expenditures" shall mean all expenditures in this state13
directly relating to a state certified production, including musician fees, artist fees,14
lodging expenses, equipment rental expenses, per diems, studio and engineering fees,15
costs of mastering, remastering, producing and, mixing.16
(4) "Related party transaction" shall mean a transaction between parties17
deemed to b e related by common ownership or control, under generally accepted18
auditing principles. Related party transaction expenditures may be subject to19
limitations as provided for by rules promulgated by the department in accordance20
with the Administrative Procedure Act.21
(5) "Sound recording" means any recording of sound used or is useful in the22
recording or producing of records for commercial release, including a recording of23
music, poetry, or spoken-word made in Louisiana, in whole or in part, mixing or24
mastering is an eligible component of production if such activities are performed in25
Louisiana irrespective of location or other production activities. The term "sound26
recording" shall not include the audio portions of dialogue or words spoken and27
recorded as part of television news coverage or athletic events.28 HLS 13RS-903 ORIGINAL
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(6) "Sound recording production company" shall mean a company engaged1
in the business of producing sound recordings as defined in this Section. Sound2
recording production company shall not mean or include any person or company, or3
any company owned, affiliated, or controlled, in whole or in part, by any company4
or person, which is in default on a loan made by the state or a loan guaranteed by the5
state, nor which has ever declared bankruptcy under which an obligation of the6
company or person to pay or repay public funds or monies was discharged as a part7
of such bankruptcy.8
(7) "State-certified production" means a sound recording production, or a9
series of productions occurring over the course of a twelve-month period, and base10
investment related to such production or productions that are approved by the11
Louisiana Department of Economic Development within one hundred eighty days12
of the receipt by the Department of Economic Development of a complete13
application for initial certification of a production. If the production is not approved14
within one hundred eighty days, the Department of Economic Development shall15
provide a written report to the Senate Committee on Revenue and Fiscal Affairs and16
the House Committee on Ways and Means which states the reason that the17
production has not been approved.18
C. Investor rebate; state-certified productions and infrastructure projects.19
(1) Until January 1, 2019, there is hereby authorized a rebate for investments20
made in state-certified productions. The rebate shall be earned by investors at the21
time expenditures are certified by the Louisiana Department of Economic22
Development according to the total base investment certified for the sound recording23
production company per calendar year; however, no rebate shall be allowed under24
this Section for any expenditures for which a rebate was granted under R.S. 47:6365.25
For state-certified productions certified on and after July 1, 2007, if the total base26
investment is greater than fifteen thousand dollars, each investor shall be allowed a27
rebate of twenty-five percent of the base investment made by that investor.28 HLS 13RS-903 ORIGINAL
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(2) Sound recording investor rebates associated with a state-certified1
production shall never exceed the total base investment in that production or sound2
recording infrastructure project.3
(3) Except as otherwise provided in this Paragraph, the aggregate amount of4
rebates certified for all investors pursuant to this Section during any calendar year5
shall not exceed three million dollars.6
(a) An application for initial certification of a project shall be submitted to7
the Louisiana Department of Economic Development prior to the granting of the8
rebate, and the granting of rebates under this Section shall be on a first-come, first-9
served basis. The secretary of the Louisiana Department of Economic Development10
shall determine through the promulgation of rules the administration of the annual11
aggregate maximum. In addition, these rules shall be approved by the House12
Committee on Ways and Means and the Senate Committee on Revenue and Fiscal13
Affairs in accordance with the provisions of the Administrative Procedure Act.14
(b) If the total amount of rebates applied for in any particular year exceeds15
the aggregate amount of rebates allowed for that year, the excess will be treated as16
having been applied for on the first day of the subsequent year.17
D. Certification and administration.18
(1) The secretary of the Department of Economic Development shall19
determine through the adoption and promulgation of rules which projects and20
expenditures, qualify according to this Section. In addition, these rules shall be21
approved by the House Committee on Ways and Means and the Senate Committee22
on Revenue and Fiscal Affairs in accordance with the provisions of the23
Administrative Procedure Act. When determining which projects qualify, the24
Louisiana Department of Economic Development shall take the following factors25
into consideration:26
(a) The impact of the production on the immediate and long-term objectives27
of this Section.28
(b) The impact of the production on the employment of Louisiana residents.29 HLS 13RS-903 ORIGINAL
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(c) The impact of the production on the overall economy of the state.1
(2)(a) Application. An applicant for the sound recording investor rebate2
shall submit an application for initial certification to the Louisiana Department of3
Economic Development that includes the following information:4
(i) For state-certified productions the application shall include:5
(aa) The distribution plan.6
(bb) A preliminary budget including estimated Louisiana payroll and7
estimated base investment.8
(cc) A description of the type of sound to be recorded.9
(dd) A list of the principal creative elements including performing artist(s)10
and producer.11
(ee) The name and address of the recording studio or other location where12
the recording production will take place.13
(ff) A statement that the production will qualify as a state-certified14
production.15
(gg) Estimated start and completion dates.16
(ii) For state-certified sound recording infrastructure projects the application17
shall include:18
(aa) A detailed description of the infrastructure project.19
(bb) A preliminary budget.20
(cc) A statement that the project meets the definition of a state-certified21
infrastructure project.22
(dd) Estimated start and completion dates.23
(b) If the application is incomplete, additional information may be requested24
prior to further action by the Louisiana Department of Economic Development.25
(c) The Louisiana Department of Economic Development shall submit its26
initial certification of a project as a state-certified production or a state-certified27
sound recording infrastructure project to investors and to the secretary of the28 HLS 13RS-903 ORIGINAL
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Department of Revenue. The initial certification shall include a unique identifying1
number for each state-certified production.2
(d) Prior to any certification of the state-certified production, the sound3
recording production company shall submit to the Louisiana Department of4
Economic Development a cost report of production or project expenditures which5
the Louisiana Department of Economic Development may require to be prepared by6
an independent certified public accountant. The Louisiana Department of Economic7
Development shall review such expenditures and shall issue a rebate certification8
letter to the investors indicating the amount of rebates certified for the state-certified9
production or state-certified infrastructure project.10
(3) The secretary of the Louisiana Department of Economic Development,11
in consultation with the Department of Revenue, shall adopt and promulgate such12
rules and regulations as are necessary to carry out the intent and purposes of this13
Section in accordance with the general guidelines provided herein.14
(4) Any applicant applying for the rebate shall be required to reimburse the15
Louisiana Department of Economic Development for any audits required in relation16
to granting the rebate.17
(5) With input from the Legislative Fiscal Office, the Louisiana Department18
of Economic Development shall prepare a written report to be submitted to the19
House Committee on Ways and Means and the Senate Committee on Revenue and20
Fiscal Affairs no less than sixty days prior to the start of the Regular Session of the21
Legislature in 2007, and every second year thereafter. The report shall include the22
overall impact of the rebates, the amount of the rebates issued, the number of new23
jobs created, the amount of Louisiana payroll created, the economic impact of the24
rebates and sound recording industry, the amount of new infrastructure that has been25
developed in the state, and any other factors that describe the impact of the program.26
E. After certification, the Louisiana Department of Economic Development27
shall submit the rebate certification letter to the Department of Revenue on behalf28
of the investor who earned the sound recording rebates. The Department of Revenue29 HLS 13RS-903 ORIGINAL
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may require the investor to submit additional information as may be necessary to1
administer the provisions of this Section. Upon receipt of the rebate certification2
letter and any necessary additional information, the secretary of the Department of3
Revenue shall make payment to the investor in the amount to which he is entitled4
from the current collections of the taxes collected pursuant to Chapter 1 of Subtitle5
II of this Title, as amended.6
F. Brand. As a condition for receiving certification of rebates under this7
Section, state-certified productions may be required to display the state brand or8
logo, or both, as prescribed by the secretary of the Department of Economic9
Development.10
G. The rebate provided for in this Section shall be subject to the provisions11
of R.S. 47:6360.12
§6373. Rebate; Musical and theatrical productions13
A. Purpose. It is the intention of the legislature in creating these five14
different types of rebates: a rebate for qualified production expenditures made from15
investments in a state-certified musical or theatrical production; a rebate for the16
construction, repair, or renovation of facilities related to such productions and17
performances; a rebate for qualified transportation costs for performance-related18
property; a rebate for the payroll of Louisiana residents employed in connection with19
a state-certified musical or theatrical production; and a rebate for employing college,20
university, and vocational-technical students employed in connection with a state-21
certified musical or theatrical production, to establish and promote Louisiana as one22
of the primary places in the United States in which live performances, from creation23
to presentation are present and thriving. The live performance industry will enhance24
economic development because it fits well with the state's reputation as a tourist25
destination, will offer numerous and varied employment opportunities, and in26
conjunction with the available federal and state incentives, will be an attraction for27
new and relocating businesses and will provide for the reinventing of countless28
abandoned properties as either performance or rehearsal spaces. The live29 HLS 13RS-903 ORIGINAL
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performance industry will also spur educational development: Louisiana colleges,1
universities, and vocational-technical schools will be able to offer talented2
undergraduate and graduate students from this state, other states, and around the3
world a real-world opportunity to participate in degree programs across the state that4
work on the various productions in accounting, law, management, and marketing and5
to fill arts-related positions such as actors, writers, producers, stagehands, and6
directors, as well as technicians working on all aspects of the production such as7
lighting, sound, and actual stage production and operations.8
B. Definitions. For the purposes of this Section:9
(1) "Base investment" means the actual investment made and expended in10
this state by a state-certified musical or theatrical production as production-related11
costs or as capital costs of a state-certified musical or theatrical facility infrastructure12
project.13
(2) "Company" or "financier" means any individual, firm, partnership,14
limited liability company, joint venture, association, corporation, estate, trust, or15
other entity, group, or combination acting as a unit, and the plural as well as the16
singular number.17
(3) "Expended in the state" or "expenditures in the state" means an18
expenditure to acquire or lease immovable property located in the state, an19
expenditure to acquire movable property from a source within the state which is20
subject to state sales and use tax, or an expenditure as compensation for services21
performed within the state.22
(4) "Musical or theatrical production" means the producing, rehearsing,23
marketing, administration, recording, performing, and/or filming of a live musical24
or theatrical performance in the state before live audiences, the costs of which are not25
certified for other rebates provided for in Louisiana law, whether or not there is a26
charge for admission. Such performances shall include, but not be limited to drama,27
comedy, comedy revue, opera, ballet, jazz, cabaret, and variety entertainment.28 HLS 13RS-903 ORIGINAL
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(5) "Payroll" means all salary, wages, and other compensation, including1
related benefits for services performed in Louisiana. For applications received on2
or after August 1, 2013, payroll expenditures shall be limited to one million dollars3
per person, per state certified production for each employee reported on a Form W2.4
Payments made to loan out companies or independent contractors reported on a Form5
1099 shall also be subject to a limitation of one million dollars, per person, per state6
certified production.7
(6)(a) "Production expenditures" means a contemporaneous exchange of8
cash or cash equivalent for goods or services related to development, production, or9
operating expenditures in this state for a state-certified musical or theatrical10
production, including but not limited to expenditures for set construction and11
operation, including special and visual effects, costumes, wardrobes, make-up,12
accessories, costs associated with sound, lighting, staging, payroll, and other related13
costs.14
(b) "Production expenditures" shall not include any indirect costs, any15
expenditures later reimbursed by a third party, and costs related to the transfer of the16
rebates, or any amounts that are paid to persons or entities as a result of their17
participation in profits from the exploitation of the production.18
(7)(a) "Resident" or "resident of Louisiana" means a natural person and, for19
the purpose of determining eligibility for the tax incentives provided by this Section,20
a person who qualifies for any of the following reasons:21
(i) The person is domiciled in the state of Louisiana.22
(ii) The person maintains a permanent place of abode within the state and23
spends in the aggregate more than six months of each year within the state.24
(iii) The person pays taxes to the state on the amount of money paid to such25
person for which a rebate is sought pursuant to this Section.26
(b) A company owned or controlled by such a person and which lends the27
services of such a person for a state-certified musical or theatrical production shall28
also be deemed a resident if such company is organized or authorized to do business29 HLS 13RS-903 ORIGINAL
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in the state and such company pays taxes to the state on the amount of money paid1
to such company for such services of such person.2
(8) "State-certified musical or theatrical facility infrastructure project" or3
"state-certified infrastructure project" means a capital infrastructure project in the4
state directly related to the production or performance of musical or theatrical5
productions as defined in this Section, and movable and immovable property and6
equipment related thereto, or any other facility which supports and is a necessary7
component of such facility, and any expenditures in the state related to the8
construction, repair, or renovation of such project, which are certified, verified, and9
approved as provided for in this Section.10
(9)(a) "State-certified musical or theatrical production" means a musical or11
theatrical production, or a series of productions occurring over the course of a12
twelve-month period, and the recording or filming of such production, which13
originate, are developed, or have their initial public performance before an audience14
within Louisiana, or which have their United States debut within Louisiana, and the15
production expenditures, expenditures for the payroll of residents, transportation16
expenditures, and expenditures for employing college and vocational-technical17
students related to such production or productions, that are certified, verified, and18
approved as provided for in this Section. Non-qualifying projects include, but are19
not limited to non-touring music and cultural festivals, industry seminars, and trade20
shows.21
(b) A "state-certified musical or theatrical production" which shall be22
eligible for recertification and the rebate provided for in this Section shall include a23
previously certified musical or theatrical production which received a rebate24
pursuant to this Section, and which is otherwise eligible pursuant to this Section,25
which returns for performances within the state after being performed on Broadway.26
(10)(a) "Transportation expenditures" means expenditures for the packaging,27
crating, and transportation both to the state for use in a state-certified musical or28
theatrical production of sets, costumes, or other tangible property constructed or29 HLS 13RS-903 ORIGINAL
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manufactured out of state, and/or from the state after use in a state-certified musical1
or theatrical production of sets, costumes, or other tangible property constructed or2
manufactured in this state. Such term shall include the packaging, crating, and3
transporting of property and equipment used for special and visual effects, sound,4
lighting, and staging, costumes, wardrobes, make-up and related accessories and5
materials, as well as any other performance or production-related property and6
equipment; provided that transportation services are purchased through a company7
which has a significant business presence in the state.8
(b) "Transportation expenditures" shall not include any costs to transport9
property and equipment to be used only for filming and not in a state-certified10
production, any indirect costs, any expenditures that are later reimbursed by a third11
party, or any amounts that are paid to persons or entities as a result of their12
participation in profits from the exploitation of the production.13
C. Income rebates for state-certified productions and state-certified musical14
or theatrical facility infrastructure projects:15
(1) There is hereby authorized the following types of rebates against the state16
income tax:17
(a)(i)(aa) A base investment rebate may be granted for certified, verified, and18
approved production expenditures for a state-certified musical or theatrical19
production, or for investments made by a company or a financier in such production20
which are, in turn, expended for such production expenditures.21
(bb) The initial certification shall be effective for a period of twelve months22
prior to and twelve months after the date of initial certification.23
(ii)(aa) A base investment rebate may be granted for expenditures made on24
or before January 1, 2014, for the construction, repair, or renovation of a state-25
certified musical or theatrical facility infrastructure project, or for investments made26
by a company or a financier in such infrastructure project which are, in turn,27
expended on or before January 1, 2014, for such construction, repair, or renovation,28
not to exceed ten million dollars per state-certified infrastructure project, under29 HLS 13RS-903 ORIGINAL
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conditions provided for in this Item. No more than sixty million dollars in rebates1
under this Section shall be granted for infrastructure projects per year.2
(bb) If all or a portion of an infrastructure project is a facility which may be3
used for other purposes not directly related to the production or performance of4
musical or theatrical production activities, then the project shall be approved only if5
a determination is made that the multiple-use facility will support and will be6
necessary to secure musical or theatrical production activities for the musical or7
theatrical production or performance facility and the applicant provides sufficient8
contractual assurances that:9
(I) The facility will be used for the production or performance of musical or10
theatrical production activities, or as a support and component thereof, for the useful11
life of the facility.12
(II) No rebates shall be earned on such multiple-use facilities until the13
facility directly used in musical or theatrical productions or performances is14
complete.15
(cc) Rebates for infrastructure projects shall be earned only as follows:16
(I) Construction of the infrastructure project shall begin within six months17
of the initial certification provided for in Subparagraph (E)(1)(d) of this Section.18
(II) Expenditures shall be certified, verified, and approved as provided for19
in this Section, and rebates are not earned until such certification.20
(III) Twenty-five percent of the total base investment provided for in the21
initial certification of an infrastructure project pursuant to Subparagraph (E)(1)(d)22
of this Section shall be certified, verified, and approved as expended before any23
rebates may be earned.24
(IV) No rebate shall be allowed for expenditures made for any infrastructure25
project two years after its initial certification pursuant to Subparagraph (E)(1)(d) of26
this Section, unless fifty percent of total base investment provided for in the initial27
certification of the project pursuant to such Subparagraph has been expended prior28
to that time. The expenditures may be finally certified at a later date.29 HLS 13RS-903 ORIGINAL
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(dd) The initial certification may require the rebates to be taken and/or1
transferred in the tax period in which the rebate is earned or the rebates may be2
structured in the initial certification of the project to provide that only a portion of3
the rebate be taken over the course of two or more tax years.4
(iii) Except as limited for state-certified infrastructure projects as provided5
for in this Subparagraph, the base investment rebate shall be for the following6
amounts:7
(aa) If the total base investment is greater than one hundred thousand dollars8
and less than or equal to three hundred thousand dollars, a company shall be allowed9
a rebate of ten percent of the base investment made by that company.10
(bb) If the total base investment is greater than three hundred thousand11
dollars and less than or equal to one million dollars, a company shall be allowed a12
rebate of twenty percent of the base investment made by that company.13
(cc) If the total base investment is greater than one million dollars, a14
company shall be allowed a rebate of twenty-five percent of the base investment15
made by that company.16
(b) Because the legislature hereby determines that the state lacks the17
facilities and services necessary to provide adequate resources for the construction18
of sets, costumes, and related property needed for productions and performances in19
the state, an additional transportation expenditure rebate shall be allowed for the20
following percentages of certified, verified, and approved transportation expenditures21
as defined in Paragraph (B)(10) of this Section; provided that transportation services22
are purchased through a company which has a significant business presence in the23
state:24
(i) One hundred percent of such amounts incurred through calendar year25
2010.26
(ii) Fifty percent of such amounts incurred during the calendar year 2011.27
(iii) Twenty-five percent of such amounts incurred during the calendar year28
2012.29 HLS 13RS-903 ORIGINAL
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(iv) No such transportation expenses incurred after December 31, 2012, shall1
be eligible for such rebate.2
(c) An additional rebate of one tenth of one percent of the amount expended3
to employ students enrolled in Louisiana colleges, universities, and vocational-4
technical schools in a state certified musical or theatrical production in arts-related5
positions, such as an actor, writer, producer, stagehand, or director, or as a technician6
working on aspects of the production such as lighting, sound, and actual stage work,7
or working indirectly on the production in accounting, law, management, and8
marketing.9
(d) To the extent that base investment is expended on payroll for Louisiana10
residents employed in connection with a state-certified musical or theatrical11
production, except for the students provided for in Subparagraph (c) of this12
Paragraph, or the construction of a state-certified musical or theatrical facility13
infrastructure project, a company shall be allowed an additional rebate of ten percent14
of such payroll; however, if the amount paid to any one person exceeds one million15
dollars, the additional rebate shall not include any amount paid to that person that16
exceeds one million dollars.17
(e) If all or a portion of an infrastructure project is a facility which may be18
used for purposes unrelated to live performance production or production-related19
activities, then the proposed base investment shall be approved only if the secretary20
of the Department of Economic Development determines that:21
(i) The multiple-use facility will support and be necessary to secure live22
performance production activity for the project; and23
(ii) The applicant provides sufficient contractual assurance that the project,24
including any multiple-use portion thereof, will be used as a live performance25
production facility, or as a support and component thereof, for the useful life of the26
facility.27
(2)(a) The rebates shall be earned each calendar year to the extent the28
Louisiana Department of Economic Development verifies in writing that29 HLS 13RS-903 ORIGINAL
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expenditures qualifying for a rebate pursuant to this Section have been expended for1
the calendar year in accordance with the estimates of such expenditures for the2
calendar year set forth in the certification of the production or project.3
(b) No rebate shall be allowed under this Section for any expenditure for4
which a financier receives a rebate pursuant to this Section, or for which a rebate is5
granted under R.S. 47:6007 or 6023. In addition, a state-certified production or6
state-certified infrastructure project which receives rebates pursuant to the provisions7
of this Chapter shall not be eligible to receive the rebates provided for in R.S.8
51:2451 through 2461 in connection with the activity for which the rebates were9
received.10
(3) Rebates associated with a state-certified musical or theatrical production11
or a state-certified musical or theatrical facility infrastructure project shall never12
exceed the total base investment in that production or infrastructure project and13
transportation expenditures.14
(4) The granting of rebates under this Section shall be on a first-come, first-15
served basis. If the total amount of rebates applied for in any particular year exceeds16
the aggregate amount of rebates allowed for that year, the excess shall be treated as17
having been applied for on the first day of the subsequent year.18
D. Certification and administration:19
(1)(a)(i) The secretary of the Department of Economic Development shall20
determine which musical or theatrical productions and which musical or theatrical21
facility infrastructure projects shall be certified pursuant to this Section through the22
adoption and promulgation of rules by the Department of Economic Development.23
The rules shall also provide for all of the following:24
(aa) The minimum criteria for such certification.25
(bb) The manner in which the department shall decide which expenditures26
for such productions or infrastructure projects will qualify for the rebates provided27
for in this Section.28 HLS 13RS-903 ORIGINAL
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(cc) An appeals process in the event that an application for or the1
certification of a production or infrastructure project, or an expenditure related to2
such production or project, is denied.3
(ii) In addition, these rules shall be approved by the House Committee on4
Ways and Means and the Senate Committee on Revenue and Fiscal Affairs in5
accordance with the provisions of the Administrative Procedure Act. No rebates6
shall be granted under this Section until adoption of such rules.7
(b) State certification shall not be granted to a production or infrastructure8
project by any person or company, or financed by any person or company, or any9
company or financier owned, affiliated, or controlled, in whole or in part, by any10
company or person, which is in default on a loan made by the state or a loan11
guaranteed by the state, or which has ever declared bankruptcy under which an12
obligation of the company or person to pay or repay public funds or monies was13
discharged as a part of such bankruptcy.14
(c) When determining which musical or theatrical productions or musical or15
theatrical facility infrastructure projects qualify for certification, the Department of16
Economic Development shall take the following factors into consideration:17
(i) The contribution of the production or infrastructure project to establishing18
the state as a leader in the live performance industry.19
(ii) The impact of the production or infrastructure project on the employment20
of Louisiana residents.21
(iii) The extent to which students in Louisiana colleges, universities, and22
vocational-technical schools will have an opportunity to work in a production in an23
arts-related position, such as an actor, writer, producer, stagehand, or director, or as24
a technician working on aspects of the production such as lighting, sound, and actual25
stage work, or working indirectly on the production in accounting, law, management,26
and marketing.27 HLS 13RS-903 ORIGINAL
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(iv) The impact of the production or infrastructure project on the overall1
economy of the state including the manner in which available federal and state2
incentives will be utilized in the financing or operation of the infrastructure project.3
(v) The availability and kind of musical or theatrical facilities within the area4
in which a musical or theatrical facility infrastructure project is proposed.5
(d) Upon approval the Department of Economic Development shall initially6
certify a production or project as a state-certified production or state-certified7
infrastructure project and send notice of such certification to the applicant and to the8
secretary of the Department of Revenue. The initial certification shall include all of9
the following:10
(i) The total base investment to be expended on the state-certified production11
or the state-certified infrastructure project.12
(ii) The companies and financiers to whom the rebates shall be allocated.13
(iii) The estimated amounts of the rebates to be allocated to each.14
(iv) In the case of state-certified infrastructure projects, when such rebates15
may be taken or transferred.16
(v) A unique identifying number for the state-certified production or state-17
certified infrastructure project.18
(e) Prior to the final certification of a production or infrastructure project, the19
applicant shall submit to the Department of Economic Development a report of the20
final amount of expenditures qualifying for rebates pursuant to this Section, which21
report the Department of Economic Development may require to be prepared by an22
independent certified public accountant. The Department of Economic Development23
shall review the report and shall issue a final rebate certification letter, certifying the24
applicant and indicating the type and amount of rebates for which the applicant or25
other companies or financiers are eligible pursuant to this Section.26
(f) An applicant applying for the rebates shall be required to reimburse the27
Department of Economic Development for any audits required in relation to granting28
the certification or rebates.29 HLS 13RS-903 ORIGINAL
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(2)(a) Application. An applicant for the rebate shall submit an application1
for initial certification to the Department of Economic Development that includes the2
following information:3
(i) The application for state-certified productions shall include:4
(aa) An application fee received by the Department of Economic5
Development based on the following:6
(I) Two tenths of one percent times the estimated total incentive rebates.7
(II) The minimum application fee shall not be less than two hundred dollars,8
and the maximum application fee shall not be more than five thousand dollars.9
(III) The application fee shall be deposited upon receipt in the state treasury.10
After compliance with the requirements of Article VII, Section 9(B) of the11
Constitution of Louisiana relative to the Bond Security and Redemption Fund and12
prior to any money being placed into the general fund or any other fund, an amount13
equal to that deposited as required by this Item shall be rebated by the treasurer to14
a special fund which is hereby created in the state treasury to be known as the15
Entertainment Promotion and Marketing Fund.16
(IV) The money in the fund shall be appropriated by the legislature to be17
used solely for promotion and marketing of Louisiana's entertainment industry. The18
money in the fund shall be invested by the treasurer in the same manner as money19
in the state general fund and interest earned on the investment of the money shall be20
rebated to the fund after compliance with the requirements of Article VII, Section21
9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption22
Fund. All unexpended and unencumbered money in the fund at the end of the year23
shall remain in the fund.24
(bb) A preliminary budget including estimated Louisiana payroll, estimated25
transportation expenditures, and estimated base investment, including the manner in26
which available federal and state incentives will be utilized in the financing or27
operation of the production.28 HLS 13RS-903 ORIGINAL
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(cc) A general description of the production and performance which may,1
at the request of the department, include the book, libretto, score, or concept, and2
plans for recording and/or filming such production.3
(dd) A list of the principal creative elements including the cast, musicians,4
headline performers, conductor, producer, or director.5
(ee) A possibility of offering students in Louisiana colleges, universities, and6
vocational-technical schools an opportunity to work directly in the production in an7
arts-related position, including a description of possible job or trainee positions8
working with professional actors, writers, producers, stagehands, directors, or9
technicians working on all aspects of the production such as lighting, sound, and10
actual stage work, or working indirectly on the production with professionals in11
accounting, law, management, and marketing.12
(ff) Estimated dates for start and completion of rehearsals before paid13
performances and the estimated dates of performances in the state.14
(gg) Plans, if any, for a national tour or for any performances in other states.15
(hh) The companies and financiers to whom the rebates shall be allocated16
and the estimated amounts of the rebates to be allocated to each.17
(ii) A discussion of any other reasons why the applicant believes the18
production should be considered a state-certified production as defined in this19
Section.20
(iii) The application for state-certified musical or theatrical facility21
infrastructure projects shall include:22
(aa) An application fee received by the Department of Economic23
Development based on the following:24
(I) Two tenths of one percent times the estimated total incentive rebates.25
(II) The minimum application fee shall not be less than two hundred dollars,26
and the maximum application fee shall not be more than five thousand dollars.27
(III) The application fee shall be deposited upon receipt in the state treasury.28
After compliance with the requirements of Article VII, Section 9(B) of the29 HLS 13RS-903 ORIGINAL
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Constitution of Louisiana relative to the Bond Security and Redemption Fund and1
prior to any money being placed into the general fund or any other fund, an amount2
equal to that deposited as required by this Item shall be rebated by the treasurer to3
a special fund known as the Entertainment Promotion and Marketing Fund.4
(IV) The money in the fund shall be appropriated by the legislature to be5
used solely for promotion and marketing of Louisiana's entertainment industry. The6
money in the fund shall be invested by the treasurer in the same manner as money7
in the state general fund and interest earned on the investment of the money shall be8
rebated to the fund after compliance with the requirements of Article VII, Section9
9(B) of the Constitution of Louisiana relative to the Bond Security and Redemption10
Fund. All unexpended and unencumbered money in the fund at the end of the year11
shall remain in the fund.12
(bb) A detailed description of the infrastructure project.13
(cc) A preliminary budget, including the manner in which available federal14
and state incentives will be utilized in the financing or operation of the infrastructure15
project.16
(dd) The companies and financiers to whom the rebates shall be allocated17
and the estimated amounts of the rebates to be allocated to each.18
(ee) A complete, detailed business plan and market analysis.19
(b) Additional information may be requested if deemed necessary by the20
Department of Economic Development.21
(3) In addition to the rules and regulations provided for in Subparagraph22
(E)(1)(a) of this Section, the secretary of the Department of Economic Development,23
in consultation with the Department of Revenue, shall adopt and promulgate such24
other rules and regulations as are necessary to carry out the intent and purposes of25
this Section in accordance with the general guidelines provided herein.26
E. The Department of Economic Development shall prepare, with input from27
the Legislative Fiscal Office, a written report to be submitted to the Senate28
Committee on Revenue and Fiscal Affairs and the House of Representatives29 HLS 13RS-903 ORIGINAL
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Committee on Ways and Means no less than sixty days prior to the start of the1
Regular Session of the Legislature in 2008, and every second year thereafter. The2
report shall include the overall impact of the rebates, the amount of the rebates3
issued, the number of net new jobs created, the amount of Louisiana payroll created,4
the economic impact of the rebates and the state-certified musical and theatrical5
productions and infrastructure projects, the amount of new infrastructure that has6
been developed in the state, and any other factors that describe the impact of the7
program.8
F. Fifty percent of the rebates annually granted according to the provisions9
of this Section for infrastructure projects shall be reserved for projects located10
outside of Jefferson and Orleans parishes, provided that the availability of rebates for11
infrastructure projects in Jefferson and Orleans parishes shall not be conditioned12
upon the granting of infrastructure rebates for projects outside of those parishes.13
G. Brand. As a condition for receiving certification of rebates under this14
Section, state-certified productions and infrastructure projects may be required to15
display the state brand or logo, or both, as prescribed by the secretary of the16
Department of Economic Development.17
H. The rebate provided for in this Section shall be subject to the provisions18
of R.S. 47:6360.19
§6374. Rebate; Ports of Louisiana20
A. Purpose.21
The primary purpose of this Section is to encourage private investment in and22
the use of state port facilities in Louisiana. Because public funding sources for ports23
and port infrastructure facilities have not kept pace with the need to expand our ports24
and port facilities, it is determined that private investment and public-private25
partnerships should be encouraged as a means to assist the state in financing26
improvements to our state ports and port infrastructure facilities. The development,27
improvement, expansion, and maintenance of the state's ports and port infrastructure28
facilities, and the utilization of public port facilities for the import and export of their29 HLS 13RS-903 ORIGINAL
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cargo to or from distribution, manufacturing, fabrication, assembly, processing, or1
warehousing sites in Louisiana, are essential to Louisiana's economic health and the2
ability of business and industry associated with the maritime industry to compete3
cost effectively on a regional, national, and global scale.4
B. Definitions.5
For purposes of this Section, the following words shall have the following6
meanings unless the context clearly indicates otherwise:7
(1) "Breakbulk cargo" shall mean machinery, equipment, materials,8
products, or commodities, including but not limited to palletized or unpalletized9
bagged, packaged, wrapped, drummed, baled, or crated goods and commodities.10
Breakbulk cargo shall mean offshore drilling platforms and equipment. Breakbulk11
cargo shall not include any liquid or dry commodities that are handled in bulk.12
(2) "Capital costs" shall mean and include all costs and expenses incurred13
by one or more investing companies in connection with the acquisition, construction,14
installation, and equipping of a qualifying project during the period commencing15
with the date on which the acquisition, construction, installation, and equipping16
commences and ending on the date on which the qualifying project is placed in17
service. Capital costs shall include, but not be limited to the following:18
(a) The costs of acquiring, constructing, installing, equipping, and financing19
a qualifying project, including all obligations incurred for labor and to contractors,20
subcontractors, builders, and materialmen.21
(b) The costs of acquiring land or rights in land and any cost incidental22
thereto, including recording fees.23
(c) The costs of contract bonds and of insurance of any kind that may be24
required or necessary during the acquisition, construction, or installation of a25
qualifying project.26
(d) The costs of architectural and engineering services, including test27
borings, surveys, estimates, plans, and specifications, preliminary investigations,28
environmental mitigation, and supervision of construction, as well as for the29 HLS 13RS-903 ORIGINAL
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performance of all the duties required by or consequent upon the acquisition,1
construction, and installation of a qualifying project.2
(e) The costs associated with installation of fixtures and equipment; surveys,3
including archaeological and environmental surveys; site tests and inspections;4
subsurface site work; excavation; removal of structures, roadways, cemeteries, and5
other surface obstructions; filling, grading, paving, and provisions for drainage,6
storm water retention, installation of utilities, including water, sewerage treatment,7
gas, electricity, communications, and similar facilities; off-site construction of utility8
extensions to the boundaries of the property.9
(f) All other costs of a nature comparable to those described, including but10
not limited to all project costs required to be capitalized for federal income tax11
purposes pursuant to the provisions of 26 U.S.C. §263(A).12
(g) Costs otherwise defined as capital costs incurred by the investing13
company where the investing company is the lessee under a lease that contains a14
term of not less than five years and is characterized as a capital lease for federal15
income tax purposes. Capital costs shall not include property owned or leased by the16
investing company or a related party before the commencement of the acquisition,17
construction, installation, or equipping of the qualified project unless such property18
was physically located outside the state for a period of at least one year prior to the19
date on which the qualifying project was placed in service.20
(3) "Containerized cargo" shall mean any machinery, equipment, materials,21
products, or commodities including but not limited to containers which are rigid,22
sealed, reusable metal boxes in which merchandise is shipped by vessel, truck, or23
rail.24
(4) "Import cargo" and "export cargo" shall mean any breakbulk or25
containerized cargo brought to the state of Louisiana from a foreign country or from26
the state of Louisiana to a foreign country.27
(5) "International business entity" shall mean a applicant corporation,28
partnership, limited liability company, or other commercial entity, all or a portion of29 HLS 13RS-903 ORIGINAL
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whose activities involve the import or export of breakbulk or containerized cargo to1
or from manufacturing, fabrication, assembly, distribution, processing, or2
warehousing facilities located within Louisiana.3
(6) "Investing company" shall mean and include any corporation,4
partnership, limited liability company, proprietorship, trust, or other business entity,5
regardless of form, making a qualified investment.6
(7) "Oceangoing vessel" shall mean any vessel, ship, barge, or watercraft that7
floats, including offshore oil exploration platforms.8
(8) "Port or port and harbor activity" shall mean and include any trade or9
business described in the 1997 North American Industry Classification System10
(NAICS) within Subsector 493 (Warehousing and Storage), Industry Number11
488310 (Port and Harbor Operations), or Industry Number 488320 (Marine Cargo12
Handling), when the trade or business is conducted on premises in which a duly13
recognized port authority has an ownership, leasehold, or other possessory interest14
and such premises are used as part of the operations of a duly recognized port15
authority, including the above trades and businesses as they may hereafter be16
reclassified in any subsequent publication of the NAICS or similar classification17
system developed in conjunction with the United States Department of Commerce18
and Office of Management and Budget.19
(9) "Project" shall mean and include any land, building, or other20
improvement, and all real and personal properties deemed necessary or useful in21
connection therewith, whether or not previously in existence, located or to be located22
in a public port of this state.23
(10) "Public port" shall mean any deep-water port commission or port,24
harbor and terminal district as defined in Article VI, Section 44 of the Constitution25
of Louisiana, and any other port, harbor, and terminal district established under Title26
34 of the Louisiana Revised Statutes of 1950.27
(11) "Qualified cargo" shall mean any breakbulk or containerized machinery,28
equipment, materials, products, or commodities owned by an international business29 HLS 13RS-903 ORIGINAL
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entity which are imported or exported to or from a manufacturing, fabrication,1
assembly, distribution, processing, or warehouse facility located in Louisiana and2
which are so moved by way of an oceangoing vessel berthed at a public port facility3
during the taxable year.4
(12) "Qualifying investment" shall mean and include the undertaking by one5
or more investing companies of a qualifying project.6
(13) "Qualifying project" shall mean and include a project to be sponsored7
or undertaken by a public port and one or more investing companies that have a8
capital cost of not less than five million dollars and at which the predominant trade9
or business activity conducted will constitute industrial, warehousing, or port and10
harbor operations and cargo handling, including any port or port and harbor activity.11
(14) "Ton" shall be a net ton of two thousand pounds and in the case of12
containerized cargo it shall exclude the weight of the container.13
C. Investor rebate.14
(1)(a) There are hereby authorized the following rebates against state income15
and corporate franchise tax:16
(i) An Investor Rebate as provided for in Subsections A through H of this17
Section for the total capital costs of a qualifying project in the manner and according18
to the provisions of those Subsections.19
(ii) An Import Export Cargo Rebate as provided for in Subsection I of this20
Section in the manner and according to the provisions of that Subsection.21
(b) The Investor Rebate provided for in this Subsection shall be issued by the22
Department of Economic Development for a qualifying project if the commissioner23
of administration, after approval of the Joint Legislative Committee on the Budget,24
and the state bond commission certifies to the secretary of the department that there25
will be sufficient Revenue received by the state to offset the effect to the state of the26
rebates provided for the capital costs of the project, whether from increased port or27
port and harbor activity because of the grant of the rebate or otherwise. If the28
commissioner with the approval of the committee so certifies, then the Department29 HLS 13RS-903 ORIGINAL
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of Economic Development may grant a rebate equal to the total capital costs of a1
qualifying project to be taken at five percent per tax year; however, the total amount2
of rebates granted on a qualifying project shall not exceed the total cost of the3
project.4
(c) The Department of Economic Development shall certify capital cost5
expenditures no less than twice during the duration of the qualifying project unless6
the investing company agrees, in writing, to reimburse the Department of Economic7
Development for the costs of any additional certifications.8
(2) Prior to issuance of any rebate pursuant to the provisions of this9
Subsection, a cooperative endeavor agreement shall be fully executed between the10
investing company or entity proposing the qualifying project and the public port in11
whose geographic jurisdiction the proposed qualifying project is to be located12
indicating cooperation and support among all of the parties. Failure to fully execute13
the cooperative endeavor agreement shall render the qualifying project ineligible for14
the rebate authorized by this Subsection.15
D. Certification and administration.16
(1) The secretary of the Department of Economic Development shall17
determine through the promulgation of rules and regulations in accordance with the18
Administrative Procedure Act, which projects and capital cost expenditures,19
including amounts expended in this state on qualifying projects, qualify for rebates.20
The Department of Economic Development shall take the following factors into21
consideration when determining which projects qualify:22
(a) The economic impact of the qualifying project on similar or existing23
publicly owned or privately owned projects located within fifty miles of the24
qualifying project. The Department of Economic Development may require the25
investing company or entity proposing the qualifying project to conduct a public26
meeting, properly noticed in accordance with the open meetings law, in the27
geographic area the proposed project is to be located.28 HLS 13RS-903 ORIGINAL
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(b) The impact of the qualifying project on the immediate and long-term1
objectives of the rebate provided for such investment.2
(c) The impact of the qualifying project on the employment of Louisiana3
residents.4
(d) The impact of the qualifying project on the overall economy of the state.5
(e) The availability of similar infrastructure or facilities within fifty miles of6
the proposed qualifying project.7
(2)(a) Application. An applicant for the ports of Louisiana investor rebate8
shall submit an application for initial certification of the qualifying project to the9
Department of Economic Development that includes the following information:10
(i) A preliminary budget including the actual or if not known, the estimated11
capital costs of the qualifying project and the qualifying project's estimated12
Louisiana payroll.13
(ii) A detailed description of the qualifying project.14
(iii) A statement that the proposed project will qualify as a qualifying15
project.16
(iv) Estimated start and completion dates. The estimated start date shall17
include the estimated date on which the acquisition, construction, installation, or18
equipping of the qualifying project was commenced or is expected to commence.19
(v) The name of each investing company, or the name or names of its20
shareholders, partners, members, owners, or beneficiaries to become entitled to the21
rebate.22
(vi) Any other information required by the Department of Economic23
Development.24
(b) If the application is incomplete, additional information may be requested25
prior to further action by the Department of Economic Development.26
(c) The Department of Economic Development shall submit its initial27
certification of a project as a qualifying project to the investing company and to the28
secretary of the Department of Revenue. The initial certification shall include a29 HLS 13RS-903 ORIGINAL
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unique identifying number for each qualifying project, the total amount of rebates1
issued for the capital costs of the qualifying project, and the amount to be taken at2
five percent per tax year.3
(d) Prior to any certification of a qualifying project, the investing company4
shall submit to the Department of Economic Development a cost report of project5
expenditures which the Department of Economic Development may require to be6
prepared by an independent certified public accountant. Additionally, the7
Department of Transportation and Development shall inspect the construction site8
of the qualifying project and shall verify that the capital costs expenditures for which9
the investing company is applying for rebates has been expended by the investing10
company. The Department of Economic Development shall review such11
expenditures and shall issue a rebate certification letter to the investing company12
indicating the amount of rebates certified for the state-certified qualifying project and13
the amount to be taken at five percent per tax year.14
(3) The secretary of the Department of Economic Development, in15
consultation with the Department of Revenue, shall promulgate rules and regulations16
in accordance with the Administrative Procedure Act as are necessary to carry out17
the intent and purposes of the rebate for port investors. All rules promulgated to18
implement the provisions of the rebate for port investors shall be subject to oversight19
and approval by the House Ways and Means Committee and the Senate Committee20
on Revenue and Fiscal Affairs.21
(4) Any applicant applying for the rebate shall be required to reimburse the22
Department of Economic Development for any audit required in relation to granting23
the rebate.24
E. Termination of Investor Rebate.25
The provisions of Subsection C of this Section shall be effective until January26
1, 2017, and no investor rebate pursuant to the provisions of this Section shall be27
granted after such date.28 HLS 13RS-903 ORIGINAL
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F. No new employees shall be hired by the Department of Economic1
Development for the implementation of the Investor Rebate provided for in this2
Section.3
G. Import Export Cargo Rebate.4
(1) Certification of applicant. Only those applicants who have received5
certification from the secretary of the Department of Economic Development shall6
be eligible to take the rebates provided for by this Subsection and then only for the7
taxable year or years and for the amount provided for in the commissioner of8
administration's certification, approved by the Joint Legislative Committee on the9
Budget and the state bond commission, provided for in Item (2)(a)(ii) of this10
Subsection as allocated by the secretary. The secretary shall promulgate rules in11
accordance with the Administrative Procedure Act which establish the process by12
which a applicant shall apply for certification.13
(a) Applicants eligible for certification include those international business14
entities which provide to the department a verified statement of cargo volume data15
for the calendar year prior to the year of the application, specifically including the16
total annual volume and tons of breakbulk or containerized cargo imported and17
exported from or to, manufacturing, fabrication, assembly, distribution, processing,18
or warehousing facilities located in Louisiana.19
(b) In no event, however, shall an applicant be certified if its exports and20
imports are limited to bulk commodities.21
(c) The secretary shall provide a statement of certification to each applicant22
which he has certified as eligible to take the rebate after approval of the Joint23
Legislative Committee on the Budget and the state bond commission, which shall24
contain the taxable year or years for which the applicant is allowed the rebate and25
the amount of rebate allocated for such taxable year or years. The secretary shall26
also transmit a copy of such statement to the secretary of the Department of27
Revenue.28 HLS 13RS-903 ORIGINAL
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(2)(a)(i) For taxable years beginning on and after January 1, 2009, there shall1
be allowed a rebate for applicants who have received certification pursuant to the2
provisions of Paragraph (1) of this Subsection. The amount of the rebate shall be3
equal to the product of multiplying five dollars by the applicant's number of tons of4
qualified cargo for the taxable year but only for the total amount of the allocation5
provided to the applicant by the secretary of the Department of Economic6
Development for such taxable year.7
(ii) The rebate provided for in this Subsection shall only be allowed for all8
or a portion of a fiscal year if the commissioner of administration certifies to the9
secretary of the Department of Economic Development that there will be sufficient10
revenue received by the state to offset the effect to the state of the rebates provided11
for in this Subsection whether from increased utilization of public port facilities12
because of the rebate or otherwise, and such certification is approved by the Joint13
Legislative Committee on the Budget and the state bond commission.14
H. The Department of Economic Development may promulgate rules and15
regulations in accordance with the Administrative Procedure Act as are necessary to16
implement the provisions of this Section subject to oversight by the House ways and17
means and the Senate revenue and fiscal affairs committees.18
I. The rebate provided for in this Section shall be subject to the provisions19
of R.S. 47:6360.20
* * *21
Section 2. R.S. 51:1791, 51:2453(1), (2)(a), (3), (4), (5)(introductory paragraph),22
2458(7), 2454(A), (B)(1)(introductory paragraph), and 2457(A)(1), (B), and (C) and 312123
are hereby amended and reenacted and R.S. 51:1792, 1793, 1794, 2453(8)(g), 2457(D), (E),24
(F) and (G) are hereby enacted to read as follows: 25
§1791. Certain parishes; rural enterprise zones26
Notwithstanding any other provision of law to the contrary, any parish with27
a population of seventy-five thousand or less according to the latest federal census28
shall be authorized to establish at least one rural enterprise zone and one economic29 HLS 13RS-903 ORIGINAL
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development zone which do not otherwise qualify for an enterprise zone or an1
economic development zone under the criteria established pursuant to this Chapter2
subject to approval by the department and the Board of Commerce and Industry.3
Any enterprise zone or economic development zone established pursuant to this4
Section shall comply with all other requirements of law as established by this5
Chapter, including but not limited to the provisions of R.S. 51:1785, 1786, and 17876
1792 et seq. insofar as those provisions are otherwise applicable to enterprise zones7
and economic development zones.8
§1792. Enterprise Zone Program Eligibility Requirements9
A. To receive the benefits provided for under this Program, a business shall10
either be located in an enterprise zone or if the business is not located in an11
enterprise zone then, at least fifty percent of its net new employees must meet one12
of the following requirements:13
(1) Reside in an enterprise zone; or 14
(2) Within the thirty day period prior to employment, the employee was15
either receiving assistance under the Family Independence Temporary Assistance16
Program or the Family Assistance Rebate Program, or the employee was considered17
unemployable by traditional standards, due to having no prior work history or job18
training, a felony criminal conviction, a history of being unable to retain employment19
after gaining it, a disability as defined 42 USC §12102, or lack basic skills by virtue20
of exhibiting below a ninth grade level proficiency in reading, writing or math.21
B. Notwithstanding the provisions of Subsection A of this Section, retail22
businesses as defined by the Department of Economic Development with more than23
one hundred employees nationwide including affiliates prior to the contract effective24
date are ineligible to participate in the program unless they are a grocery store or25
pharmacy as defined by the department located in an enterprise zone.26
C. To receive benefits provided under this program, a business must create27
a minimum of five permanent full-time net new jobs within the first two years after28
the effective date of the contract, or the number of permanent full-time net new jobs29 HLS 13RS-903 ORIGINAL
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equal ten percent of the nationwide employment of the business within the first year1
after the effective date of the contract, whichever is less. For good cause shown, the2
board may grant an extension of not more than two years to comply with the3
foregoing job creation requirements.4
§1793. Benefits under the Enterprise Zone Program Contract5
A. The Board of Commerce and Industry, or its successor, after consultation6
with the secretaries of the Louisiana Workforce Commission and the Department of7
Revenue, with the approval of the governor, may enter into a contract with an8
employer complying with the provisions of this Chapter for a period of up to five9
years.10
B. Businesses with an Enterprise Zone Program contract are entitled to the11
following benefits:12
(1) A two thousand five hundred dollar rebate per net new job as determined13
by the company's average annual employment reported under the Louisiana14
Employment Security Law during the taxable year for which credit is claimed; and15
(2) Either of the following:16
(a)(i) A rebate of the sales and use tax imposed by the state and imposed by17
its political subdivisions upon approval of the governing authority of the appropriate18
municipality or the appropriate parish where applicable, or both, and of the19
governing authority of any other political subdivision, including the office of sheriff20
in the case of a law enforcement district, for the following:21
(aa) The use of customer-owned tooling in a compression molding process.22
(bb) Purchases of the material used in the construction of a building, or any23
addition or improvement thereon, for housing any legitimate business enterprise and24
machinery and equipment used in that enterprise.; or25
(b) A project facility expense rebate equal to two and one-half percent of the26
amount of qualified expenditures. For purposes of this Paragraph, the term27
"qualified expenditures" shall mean amounts classified as capital expenditures for28
federal income tax purposes related to the project plus exclusions from capitalization29 HLS 13RS-903 ORIGINAL
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provided for in Internal Revenue Code Section 263(a)(1)(A) through (L), minus the1
capitalized cost of land, capitalized leases of land, capitalized interest, capitalized2
costs of manufacturing machinery and equipment to the extent the capitalized3
manufacturing machinery and equipment costs are excluded from sales and use tax4
pursuant to R.S. 47:301(3), and the capitalized cost for the purchase of an existing5
building. When a participating business purchases an existing building and capital6
expenditures are used to rehabilitate the building, the costs of the rehabilitation only7
shall be considered qualified expenditures. Additionally, a participating business8
shall be allowed to increase their qualified expenditures to the extent a participating9
business's capitalized basis is properly reduced by claiming a federal credit. A10
qualified business earns the project facility expense rebate in the fiscal year in which11
the project is placed in service but the qualified business may not be issued the12
project facility expense rebate until the Department of Economic Development signs13
a project completion report.14
(3) The state sales and use tax rebate and project facility expense rebate shall15
be limited to one hundred thousand dollars for each net new job created under the16
Enterprise Zone contract as provided by rule.17
C. The rebate provided in Paragraph (1) of Subsection A of this Section shall18
be applicable only to a position within the state that did not previously exist in the19
business enterprise and that is filled by a person who is a citizen of the United States20
and who is domiciled in Louisiana, or who is a citizen of the United States and21
becomes domiciled in Louisiana within sixty days after his employment in such22
position, performing duties in connection with the operation of the business23
enterprise as a regular, full-time employee. The total number of credits allowed to24
a business enterprise for employees who are citizens of the United States and who25
become domiciled in Louisiana within sixty days after employment shall not exceed26
fifty percent of the total number of credits allowed to the business enterprise under27
the contract.28 HLS 13RS-903 ORIGINAL
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D.(1) The request for a rebate of local sales and use tax shall be accompanied1
by an endorsement resolution approved by the governing body of the appropriate2
municipality, parish, port district, industrial development board, or other political3
subdivision or the written approval of the office of sheriff in the case of a law4
enforcement district, in whose jurisdiction the establishment is to be located.5
(2) The endorsement resolution or letter of approval shall be submitted by6
the governing body or sheriff's office within ninety days of receipt of notification7
that the department has received an advance notification to file an application for8
benefits under this Chapter. The department shall notify the appropriate local9
governing body or sheriff's office of receipt of the application.10
(3) If the governing body of the appropriate jurisdiction has not submitted11
an endorsement resolution, written reasons for denial, or a written request for delay12
of consideration of the application, the board may take unilateral action, for the13
rebate of sales and use taxes imposed by the state only, in approving or denying the14
request.15
(4) If there are no local sales and use taxes that can be rebated, as in the16
event that all such taxes are dedicated, no endorsement resolution shall be required17
of a local governing authority before the board considers its application for benefits18
under this Chapter.19
§1794. Issuance and Claim of Benefits20
A. Jobs Incentive Rebate. The Department of Economic Development shall21
annually certify the amount of jobs incentive rebates for a participating business.22
After the Department of Economic Development certifies the amount of the rebate,23
a business shall redeem the rebate with the Department of Revenue.24
B. Sales and Use Tax Rebate. (1) Application for the payment of the rebate25
of state sales and use taxes granted pursuant to this Section shall be filed no later26
than six months after the Department of Economic Development signs a project27
completion report and sends it to the Department of Revenue, the political28
subdivision, and the business, or no later than thirty days after the end of the calendar29 HLS 13RS-903 ORIGINAL
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year in the case of customer-owned tooling used in a compression molding process.1
The project completion report cannot be signed until the project is complete and the2
contract has been approved by the board and the governor.3
(2) Requests for rebates of state sales and use tax pursuant to this Section4
shall be processed by the Department of Revenue as follows:5
(a) A properly completed rebate request shall be submitted to the Department6
of Revenue on forms provided by the Department of Revenue. A properly7
completed rebate request shall mean a rebate request that includes the general8
information required on the face of the request, a certification from the Department9
of Economic Development stating the number of net new jobs created, a copy of the10
executed incentive contract, a copy of each invoice over fifteen thousand dollars, is11
signed, and all required schedules. The request shall be submitted electronically12
unless the secretary of the Department of Revenue grants permission to submit the13
request in an alternate form.14
(b) Within ten business days of the receipt of a properly completed rebate15
request, the Department of Revenue shall rebate eighty percent of the total amount16
claimed for rebate in the rebate request. Within three months of the date of filing the17
rebate request, the Department of Revenue shall audit the rebate request. During18
such three-month period, the Department of Revenue shall disallow items19
determined to be ineligible for rebate. Within ten business days following the20
expiration of such three-month period, the Department of Revenue shall rebate the21
remaining twenty percent of the amount claimed on the rebate request less any22
amounts properly disallowed during the three-month audit period. The Department23
of Revenue shall make such rebates from the current collections of the taxes24
collected pursuant to Chapter 2, Chapter 2-A, or Chapter 2-B of Subtitle II of Title25
47 of the Louisiana Revised Statutes of 1950, as amended. Any sales and use tax26
rebate issued shall be subject to subsequent audit by the Department of Revenue, and27
any rebate amount determined to be in excess of that which should have been28
allowed shall be subject to collection by the Department of Revenue.29 HLS 13RS-903 ORIGINAL
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C. Project Facility Expense Rebate. (1) Application for the payment of the1
project facility expense rebate provided for pursuant to this Section shall be filed no2
later than six months after the Department of Economic Development signs a project3
completion report and sends it to the Department of Revenue, the political4
subdivision, and the business, or no later than thirty days after the end of the calendar5
year in the case of customer-owned tooling used in a compression molding process.6
The project completion report cannot be signed until the project is complete and the7
contract has been approved by the board and the governor.8
(2) Requests for the project facility expense rebate pursuant to this Section9
shall be processed by the Department of Revenue as follows:10
(a) A properly completed project facility expense rebate request shall be11
submitted to the Department of Revenue on forms provided by the Department of12
Revenue. A properly completed project facility expense rebate request shall mean13
a rebate request that includes the general information required on the face of the14
request, a certification from the Department of Economic Development stating the15
number of new jobs created, a copy of the executed incentive contract, is signed, and16
a copy all required schedules. The request shall be submitted electronically unless17
the secretary of the Department of Revenue grants permission to submit the request18
in an alternate form.19
(b) Within thirty business days of the receipt of a properly completed rebate20
request, the Department of Revenue shall rebate one hundred percent of the total21
amount claimed as a rebate. The Department of Revenue shall make such credit22
payment from the current collections of the taxes collected pursuant to Chapter 2,23
Chapter 2-A, or Chapter 2-B of Subtitle II of Title 47 of the Louisiana Revised24
Statutes of 1950, as amended. Any rebate issued shall be subject to subsequent audit25
by the Department of Revenue, and any rebate amount determined to be in excess26
of that which should have been allowed shall be subject to collection by the27
Department of Revenue.28 HLS 13RS-903 ORIGINAL
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D. Failure of the Department of Revenue to timely pay sales and use tax1
rebates and project facility expense rebates as provided herein shall entitle the2
taxpayer to interest, which shall begin to accrue on the statutory deadline for3
payment of the rebate or credit at the rate established pursuant to the provisions of4
R.S. 13:4202. Payments of interest authorized according to the provisions of this5
Section shall be made from the current collections of taxes collected pursuant to6
Chapter 2, Chapter 2-A, or Chapter 2-B of Subtitle II of Title 47 of the Louisiana7
Revised Statutes of 1950, as amended.8
E. For purposes of filing the application provided for in Paragraph (B)(1) and9
(C)(1) of this Section, the business filing the application, upon request, shall receive10
a thirty-day extension of time in which to file its application, provided such request11
for extension is received by the Department of Revenue prior to the expiration of12
such filing period. The Department of Revenue is also authorized to grant the13
business an additional extension of time, not to exceed sixty days, in which to file14
its application provided that the business shows reasonable cause for granting such15
extension.16
F. If the collecting agencies receive notice that the rebate or credit, or any17
part thereof, has ceased by reason of a violation of the terms of the contract under18
which it was granted, then the amount of the rebate for the year in which the19
violation occurred and for each year thereafter in which the violation is not remedied20
shall be considered a tax due as of December thirty-first of the year in which the21
violation occurred, and for each year thereafter in which a rebate is claimed and the22
violation is not remedied, and it shall be collected by the collecting agencies in the23
same manner and subject to the same provisions for the collection of other tax debts.24
G. Local Sales and Use Tax Rebate. (1) The business makes its request for25
rebate of local sales and use tax or the tax credit either:26
(a) Prior to beginning construction of its building, or any addition or27
improvement thereon; or28 HLS 13RS-903 ORIGINAL
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(b) Prior to installation of the machinery or equipment to be used in the1
enterprise zone; or2
(c) Prior to beginning use of customer-owned tooling used in a compression3
molding process.4
(2) At any time subsequent to the deadlines established in Items (a), (b), and5
(c) of Subparagraph (1), if the board determines that the business was unable, due to6
good cause, to file the request within the time frame provided, the board may7
consider a late request, but the business shall have the burden to establish good8
cause.9
(3) Within ninety days from the date that a properly completed rebate request10
submitted by a taxpayer is received by the appropriate local taxing authority, the11
taxing authority shall review the rebate request and issue a rebate check to the12
taxpayer for allowed items and shall notify the taxpayer of any disallowed items.13
(4) For purposes of this Subsection, a properly completed rebate request14
shall mean a rebate request that includes the general information required on the face15
of the request, is signed, and includes a copy of each invoice and all required16
schedules.17
(5) Within sixty days from receipt of the notification of disallowed items, the18
taxpayer shall resubmit a properly completed rebate request for disallowed items to19
the taxing authority for reconsideration. The time periods for reconsideration of20
disallowed items in a rebate request shall be the same as the time periods for21
consideration of the initial rebate request.22
(6) Rebate requests may be submitted electronically with the approval of the23
local taxing authority.24
(7) Failure by a local taxing authority to timely process and pay a local sales25
and use tax rebate in accordance with the provisions of this Subsection shall entitle26
the taxpayer to interest on the amount of the allowed items contained in the properly27
completed rebate request.28 HLS 13RS-903 ORIGINAL
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(8) Interest shall begin to accrue on the date the properly completed rebate1
request or reconsideration of disallowed items in a properly completed rebate request2
is received by the taxing authority at the rate established pursuant to the provisions3
of R.S. 13:4202.4
(9) Sales and use taxes imposed by a political subdivision which are5
dedicated to the repayment of bonded indebtedness or dedicated to schools shall not6
be eligible for rebate. All other state and local sales and use taxes shall be eligible7
for rebate.8
(10) No governing authority of a political subdivision or sheriff's office shall9
charge any fee or require any employment practice that conflicts with state or federal10
law as a precondition to authorizing tax benefits under this Chapter. The governing11
authority of each political subdivision or sheriff's office shall, after all requirements12
of this Chapter have been met, promptly rebate any sales and use taxes to the entity13
entitled to such rebate.14
* * *15
§2453. Definitions16
The following words or terms as used in this Chapter shall have the following17
meaning, unless a different meaning appears from the context:18
(1) "Act" means the Patient Protection and Affordable Care Act (enacted by19
Public Law 111-1480) and subsequent consolidating amendments thereto.20
(2) "Benefit rate" means the following percentages:21
(a) For new direct jobs created which pay at least fourteen dollars and fifty22
cents per hour inclusive of wages and the value of the up to $1.25 per hour paid for23
health care benefits paid or offered in accordance with Paragraph (2) (4) of this24
Section, the benefit rate shall be five percent, provided that at least fifty percent of25
the employees holding new direct jobs accept the health care benefits offered.26
(b) For new direct jobs created which pay at least nineteen dollars and ten27
cents per hour inclusive of wages and the value of the up to $1.25 per hour paid for28
health care benefits paid or offered in accordance with Paragraph (2) (4)of this29 HLS 13RS-903 ORIGINAL
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Section, the benefit rate shall be six percent, provided that at least fifty percent of the1
employees holding new direct jobs accept the health care benefits offered.2
(3) "Code" means the Internal Revenue Code of 1983 and incorporates the3
meaning of any Treasury Regulations promulgated under a particular Section of the4
Code.5
(2) (4) "Employer" shall mean a legal person who executes a contract with6
the department pursuant to the provisions of this Chapter and who offers, or will7
offer within ninety days of the effective date of qualifying for the incentive rebates8
pursuant to the provisions of this Chapter, a basic health benefits plan to the9
individuals it employs in new direct jobs in this state which shall be determined by10
the Department of Economic Development to have a value of at least one dollar and11
twenty-five cents per hour.12
(a) The "basic health benefits plan" or the "health insurance coverage"13
required to be offered or provided by this Paragraph shall also include coverage for14
basic hospital care, and coverage for physician care, as well as coverage for health15
care, which shall be the same coverage as is provided to employees employed in a16
bona fide executive, administrative, or professional capacity by the employer who17
are exempt from the minimum wage and maximum hour requirements of the federal18
Fair Labor Standards Act, 29 U.S.C.A. §201, et seq. as follows:19
(a) Employers classified as an Applicable Large Employer under Section20
4980(c)(2) of the Code, shall meet both of the following requirements:21
(i) Offer to provide minimum essential coverage in accordance with Section22
5000A(f)(1)(B) of the Code for employer sponsored plans to the employee and such23
coverage must comply with the requirements for minimal essential coverage under24
Section 36B(c)(2)(C) of the Code.25
(ii) Not be liable for any assessable payments under Sections 4890H(a)(1)26
or (b) of the Code after ninety days from the effective date of qualifying for the27
incentive rebates pursuant to the provisions of this Chapter.28 HLS 13RS-903 ORIGINAL
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(b) Employers not classified as an Applicable Large Employer under Section1
4890H(a)(1) or (b) of the Code, shall meet either of the following requirements:2
(i) Offer to provide minimum essential coverage in accordance with Section3
5000A(f)(1)(B) of the Code for employer sponsored plans to the employee and such4
coverage shall comply with the requirements for minimal essential coverage under5
Section 36B(c)(2)(C) of the Code.6
(ii) Pay a benefit of $1.25 per hour to the employee and beginning January7
1, 2014, provide to the employee at the time fo hiring written notice informing the8
employee of the existence of an Exchange, and the manner in which the employee9
may contact the Exchange to request assistance.10
* * *11
(3) (5) "Exchange" means the definition of "exchange" in 45 Code of12
Federal Regulations 155.20. 13
(6) "Gross payroll" means wages for the new direct jobs as defined herein14
upon which the particular benefit rate is calculated.15
(4) (7) "New direct job" means employment in this state of an employee16
working at the average hours per week provided for in R.S. 51:2455(E)(2), who was17
not previously on an employer's payroll in Louisiana, nor previously on the payroll18
of such employer's parent entity, subsidiary, or affiliate in Louisiana, or previously19
on the payroll of any business whose physical plant and employees are substantially20
the same as those of the employer in Louisiana. Such job shall be with an employer21
that has qualified to receive a rebate pursuant to the provisions of this Chapter, which22
job did not exist in this state prior to the effective date the application was filed by23
the employer with the Department of Economic Development pursuant to the24
provisions of R.S. 51:2455 and which job is filled by an individual domiciled in the25
state of Louisiana. "New direct job" shall not mean any job that is a result of job26
shifts due to the gain or loss of an in-state contract to supply goods and services.27
"New direct job" shall not mean any employees who were retained following the28
acquisition of all or part of an in-state business by an employer.29 HLS 13RS-903 ORIGINAL
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(5) (8) "Wages" means all remuneration for services from whatever source,1
including commissions and bonuses and the cash value of all remuneration in any2
medium other than cash, and dismissal payments which the employer is required by3
law or contract to make. Gratuities customarily received by an individual in the4
course of his work from persons other than his employer shall be treated as wages5
received from his employer. The reasonable cash value of remuneration in any6
medium other than cash and the reasonable amount of gratuities shall be estimated7
and determined in accordance with the Internal Revenue Code and its rules and8
regulations. The term "wages" shall not include the following:9
* * *10
(g) For employers qualifying pursuant to Item (b)(ii) of Paragraph (4) of this11
Section, the $1.25 hourly benefit provided for the purchase of healthcare on an12
Exchange.13
§2454. Rebate approval14
A. The state Board of Commerce and Industry, or its successor, after15
consultation with the secretaries of the Louisiana Workforce Commission and the16
Department of Revenue, with the approval of the governor, may enter into a contract17
with an employer complying with the provisions of this Chapter for a period of up18
to five years of payroll rebates. A contract with an employer shall be limited to a19
single physical location, and the benefits the employer shall receive shall be based20
solely upon the operations at that location. An employer may have more than one21
contract covering multiple locations; however, eligibility of each location shall be22
determined separately, with the exception that, in determining new direct jobs, the23
department shall certify that the employer has a net overall increase in employment24
statewide for each new direct job.25
B. A contract may be renewed under any of the following circumstances:26
(1) A five-year payroll rebate renewal may be authorized if:27
* * *28 HLS 13RS-903 ORIGINAL
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§2456. Rebate; payments1
A. The payroll rebates authorized in this Chapter shall be paid annually after2
the employer has filed its application for annual rebate at the end of the employer's3
fiscal year with the Department of Economic Development, and the department has4
determined from the information submitted along with such application as provided5
for in R.S. 51:2457 that the employer is eligible for such rebate for such year. The6
initial five year payroll rebate period shall begin within three years of the contract7
effective date but no later than the project completion date. For employers who do8
not claim either the sales and use tax rebate or a project facility expense rebate, the9
initial five year payroll rebate period shall begin on the contract effective date.10
B. In addition to the rebates provided in this Chapter, an employer who has11
executed a contract under the provisions of this Chapter shall be entitled to the same12
a sales and use tax rebates or refundable investment income tax credit authorized in13
R.S. 51:1787, if the employer meets the enterprise zone program hiring requirements14
and all other limitations, procedures, and requirements in R.S. 51:1787. Any15
contract executed under this Chapter which provides for a rebate of local sales and16
use taxes shall include the same procedures and requirements under R.S. 51:1787 for17
rebates involving local sales and use taxes, including but not limited to the18
requirement that any such request for a rebate of local sales and use taxes be19
accompanied by an endorsement resolution approved by the governing authority of20
the appropriate municipality, parish, port district, or industrial district board in whose21
jurisdiction the employer is or will be located. rebate for capital expenditures for the22
facility designated in the contract provided for in Paragraph (1) of Subsection (B) of23
this Section or project facility expense rebate provided for in Paragraph (2) of24
Subsection (B) of this Section.25
(1) A rebate of sales and use tax imposed by the state for the purchases of26
the material used in the construction of a building, or any addition or improvement27
thereon, for housing any legitimate business enterprise and machinery and equipment28 HLS 13RS-903 ORIGINAL
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used in that enterprise for all years beginning the year after the contract effective1
date up to and including the year of project completion.2
(2) In lieu of the state sales and use tax rebate, a qualified business shall be3
entitled to a project facility expense rebate equal to two and one-half percent of the4
amount of qualified capital expenditures for the facility or facilities designated in the5
contract for all years beginning the year after the contract effective date up to and6
including the year of project completion.7
(a) For purposes of this Subparagraph, the term "qualified capital8
expenditures" means amounts classified as capital expenditures for federal income9
tax purposes related to the project plus exclusions from capitalization provided for10
in Internal Revenue Code Section 263 (a)(1)(A) through (L), minus the capitalized11
cost of land, capitalized leases of land, capitalized interest, capitalized costs of12
manufacturing machinery and equipment to the extent the capitalized manufacturing13
machinery and equipment costs are excluded from sales and use tax pursuant to R.S.14
47:301(3), and the capitalized cost for the purchase of an existing building.15
(b) When a qualified business purchases an existing building and capital16
expenditures are used to rehabilitate the building, only the costs of the rehabilitation17
shall be considered qualified capital expenditures.18
(c) A qualified business shall be allowed to increase its qualified capital19
expenditures to the extent the qualified business' capitalized basis is properly reduced20
by claiming a federal credit.21
C. Any qualified business which receives a contract pursuant to this Chapter22
may also apply for a rebate of local sales and use taxes imposed by its political23
subdivisions upon approval of the governing authority of the appropriate24
municipality or the appropriate parish where applicable, or both, and of the25
governing authority of any other political subdivision, including the office of sheriff26
in the case of a law enforcement district, under the following procedures and27
requirements:28 HLS 13RS-903 ORIGINAL
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(1) The request for a rebate of local sales and use tax is accompanied by an1
endorsement resolution approved by the governing body of the appropriate2
municipality, parish, port district, industrial development board, or other political3
subdivision or the written approval of the office of sheriff in the case of a law4
enforcement district, in whose jurisdiction the establishment is to be located.5
(2) The endorsement resolution or letter of approval is to be submitted by the6
governing body or sheriff's office within ninety days of receipt of notification that7
the department has received an advance notification to file an application for benefits8
under this Chapter. The department shall notify the appropriate local governing body9
or sheriff's office of receipt of the application.10
(3) If the governing body of the appropriate jurisdiction has not submitted11
an endorsement resolution, written reasons for denial, or a written request for delay12
of consideration of the application, the board may take unilateral action, for the13
rebate of sales and use taxes imposed by the state only, in approving or denying the14
request.15
(4) If there are no local sales and use taxes that can be rebated, as in the16
event that all such taxes are dedicated, no endorsement resolution shall be required17
of a local governing authority before the board considers its application for benefits18
under this Chapter.19
§2457. Filing claim to receive rebate; determination; repayment20
A.(1) After the end of the fiscal year of an employer for which an employer21
has qualified to receive a payroll rebate, the employer shall file an application for the22
annual rebate as required in R.S. 51:2456 with the Department of Economic23
Development.24
* * *25
B. (5) If the actual verified gross payroll for the employer's fiscal year for26
which the employer is applying for his third annual rebate does not show a minimum27
of five new direct jobs and is not of an amount which equals or exceeds a total of28
five hundred thousand dollars, or, where applicable according to R.S. 51:2455(E)(1),29 HLS 13RS-903 ORIGINAL
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two hundred fifty thousand dollars, the tax liability for the tax period in which the1
failure to show such minimum occurs shall be increased by the amount of rebates2
previously allowed. If at any other time during the ten-year period when the3
employer applies for a rebate at the end of the employer's fiscal year, the actual4
verified gross payroll for such fiscal year does not show a minimum of five new5
direct jobs and an amount which equals or exceeds a total of five hundred thousand6
dollars, or, where applicable according to R.S. 51:2455(E)(1), two hundred fifty7
thousand dollars, the rebates shall be suspended and shall not be resumed until such8
time as the actual verified gross payroll shows a minimum of five new direct jobs9
and an amount which equals or exceeds five hundred thousand dollars or, where10
applicable according to R.S. 51:2455(E)(1), two hundred fifty thousand dollars. No11
rebate shall accrue or be paid to the employer during a period of suspension.12
C. (6) An employer that has qualified pursuant to R.S. 51:2455 is eligible to13
receive rebates under this Chapter only in accordance with the provisions under14
which it initially applied and was approved. If an employer that is receiving rebates15
expands, it may apply for additional rebates based on the gross payroll anticipated16
from the expansion only, pursuant to R.S. 51:2455.17
B. Issuance of State Sales and Use Tax Rebate18
(1) Applications for the payment of the rebate of state sales and use taxes19
shall be made annually after the end of the fiscal year of an employer for all years20
after the effective date of the contract up to and including the year in which the21
project is completed.22
(2) Qualifying purchases of material used in the construction, addition or23
improvement of a building made on or after the effective date of the contract shall24
be eligible for the rebate and shall be included in the application for payment of the25
rebate of sales and use taxes.26
(3) Application for the final payment of the rebate of state sales and use27
taxes granted pursuant to this Section shall be filed no later than six months after the28
Department of Economic Development signs a project completion report and sends29 HLS 13RS-903 ORIGINAL
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it to the Department of Revenue, the political subdivision, and the business, or no1
later than thirty days after the end of the calendar year in the case of customer-owned2
tooling used in a compression molding process. The project completion report cannot3
be signed until the project is complete and the contract has been approved by the4
board and the governor.5
(4) Requests for rebates of state sales and use tax pursuant to this Section6
shall be processed by the Department of Revenue as follows:7
(a) A properly completed rebate request shall be submitted to the Department8
of Revenue on forms provided by the Department of Revenue. A properly completed9
rebate request shall mean a rebate request that includes the general information10
required on the face of the request, is signed and includes a copy of the executed11
incentive contract, a copy of each invoice over fifteen thousand dollars, and all12
required schedules. The request shall be submitted electronically unless the secretary13
of the Department of Revenue grants permission to submit the request in an alternate14
form.15
(b) Within ten business days of the receipt of a properly completed rebate16
request, the Department of Revenue shall rebate eighty percent of the total amount17
claimed for rebate in the rebate request. Within three months of the date of filing the18
rebate request, the Department of Revenue shall audit the rebate request. During such19
three-month period, the Department of Revenue shall disallow items determined to20
be ineligible for rebate. Within ten business days following the expiration of such21
three-month period, the Department of Revenue shall rebate the remaining twenty22
percent of the amount claimed on the rebate request less any amounts properly23
disallowed during the three-month audit period. The Department of Revenue shall24
make such rebates from the current collections of the taxes collected pursuant to25
Chapter 2, Chapter 2-A, or Chapter 2-B of Subtitle II of Title 47 of the Louisiana26
Revised Statutes of 1950, as amended. Any sales and use tax rebate issued shall be27
subject to subsequent audit by the Department of Revenue, and any rebate amount28 HLS 13RS-903 ORIGINAL
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determined to be in excess of that which should have been allowed shall be subject1
to collection by the Department of Revenue.2
C. Issuance of Project Facility Expense Rebate3
(1) Applications for the payment of the project facility expense rebate shall4
be made annually after the end of the fiscal year of an employer for all years after the5
effective date of the contract up to and including the year in which the project is6
placed in service.7
(2) Application for the final payment of the project facility expense rebate8
granted pursuant to this Section shall be filed no later than six months after the9
Department of Economic Development signs a project completion report and sends10
it to the Department of Revenue, the political subdivision, and the business. The11
project completion report cannot be signed until the project is complete and the12
contract has been approved by the board and the governor.13
(3) Requests for the project facility expense rebate pursuant to this Section14
shall be processed by the Department of Revenue as follows:15
(a) A properly completed project facility expense rebate request shall be16
submitted to the Department of Revenue on forms provided by the Department of17
Revenue. A properly completed project facility expense rebate request shall mean18
a rebate request that includes the general information required on the face of the19
request, is signed and includes a copy of the executed incentive contract, and a copy20
all required schedules. The request shall be submitted electronically unless the21
secretary of the Department of Revenue grants permission to submit the request in22
an alternate form.23
(b) Within thirty business days of the receipt of a properly completed rebate24
request, the Department of Revenue shall rebate one hundred percent of the total25
amount claimed as a project facility expense rebate. The Department of Revenue26
shall make such rebate payment from the current collections of the taxes collected27
pursuant to Chapter 2, Chapter 2-A, or Chapter 2-B of Subtitle II of Title 47 of the28
Louisiana Revised Statutes of 1950, as amended. Any project facility expense rebate29 HLS 13RS-903 ORIGINAL
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issued shall be subject to subsequent audit by the Department of Revenue, and any1
rebate amount determined to be in excess of that which should have been allowed2
shall be subject to collection by the Department of Revenue.3
D. Failure of the Department of Revenue to timely pay sales and use tax4
rebates and project facility expense rebates as provided herein shall entitle the5
taxpayer to interest, which shall begin to accrue on the statutory deadline for6
payment of the rebate at the rate established pursuant to the provisions of R.S.7
13:4202. Payments of interest authorized according to the provisions of this Section8
shall be made from the current collections of taxes collected pursuant to Chapter 2,9
Chapter 2-A, or Chapter 2-B of Subtitle II of Title 47 of the Louisiana Revised10
Statutes of 1950, as amended.11
E. For purposes of filing the application provided for in Subsection (B) and12
(C) of this Section, the business filing the application, upon request, shall receive a13
thirty-day extension of time in which to file its application, provided such request for14
extension is received by the Department of Revenue prior to the expiration of such15
filing period. The Department of Revenue is also authorized to grant the business an16
additional extension of time, not to exceed sixty days, in which to file its application17
provided that the business shows reasonable cause for granting such extension.18
F. Issuance Local Sales and Use Tax19
(1) The business makes its request for rebate of local sales and use tax:20
(a) Prior to beginning construction of its building, or any addition or21
improvement thereon,22
(b) Prior to installation of the machinery or equipment to be used in the23
enterprise zone, or24
(c) Prior to beginning use of customer-owned tooling used in a compression25
molding process.26
(2) At any time subsequent to the deadlines established in Subparagraph (a),27
(b), and (c) of Subsection (F), if the board determines that the business was unable,28
due to good cause, to file the request within the time frame provided, the board may29 HLS 13RS-903 ORIGINAL
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consider a late request, but the business shall have the burden to establish good1
cause.2
(3) Within ninety days from the date that a properly completed rebate request3
submitted by a taxpayer is received by the appropriate local taxing authority, the4
taxing authority shall review the rebate request and issue a rebate check to the5
taxpayer for allowed items and shall notify the taxpayer of any disallowed items.6
(4) For purposes of this Subsection, a properly completed rebate request7
shall mean a rebate request that includes the general information required on the face8
of the request, is signed, and includes a copy of each invoice and all required9
schedules.10
(5) Within sixty days from receipt of the notification of disallowed items, the11
taxpayer shall resubmit a properly completed rebate request for disallowed items to12
the taxing authority for reconsideration. The time periods for reconsideration of13
disallowed items in a rebate request shall be the same as the time periods for14
consideration of the initial rebate request.15
(6) Rebate requests may be submitted electronically with the approval of the16
local taxing authority.17
(7) Failure by a local taxing authority to timely process and pay a local sales18
and use tax rebate in accordance with the provisions of this Subsection shall entitle19
the taxpayer to interest on the amount of the allowed items contained in the properly20
completed rebate request.21
(8) Interest shall begin to accrue on the date the properly completed rebate22
request or reconsideration of disallowed items in a properly completed rebate request23
is received by the taxing authority at the rate established pursuant to the provisions24
of R.S. 13:4202.25
(9) Sales and use taxes imposed by a political subdivision which are26
dedicated to the repayment of bonded indebtedness or dedicated to schools shall not27
be eligible for rebate. All other state and local sales and use taxes shall be eligible28
for rebate.29 HLS 13RS-903 ORIGINAL
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(10) No governing authority of a political subdivision or sheriff's office shall1
charge any fee or require any employment practice that conflicts with state or federal2
law as a precondition to authorizing tax benefits under this Chapter. The governing3
authority of each political subdivision or sheriff's office shall, after all requirements4
of this Chapter have been met, promptly rebate any sales and use taxes to the entity5
entitled to such rebate.6
G. If the collecting agencies receive notice that the rebate, or any part7
thereof, has ceased by reason of a violation of the terms of the contract under which8
it was granted, then the amount of the rebate for the year in which the violation9
occurred and for each year thereafter in which the violation is not remedied shall be10
considered a tax due as of December thirty-first of the year in which the violation11
occurred, and for each year thereafter in which a rebate is claimed and the violation12
is not remedied, and it shall be collected by the collecting agencies in the same13
manner and subject to the same provisions for the collection of other tax debts.14
§2458. Employers receiving rebates not eligible to receive certain other tax credits15
and exemptions16
Notwithstanding any other provision of law and except as provided in R.S.17
51:2456(B), a qualified employer who receives a rebate pursuant to the provisions18
of this Chapter shall not be eligible to receive the other credits or exemptions19
provided for in the following provisions of law in connection with the activity for20
which the rebate was received:21
* * *22
(7) R.S. 51:1787 R.S. 51:1792 et seq. (incentives tax exemption from sales23
and use tax materials to be used in the construction of a building and for machinery24
and income tax credit for each employee in enterprise zone).25
* * *26 HLS 13RS-903 ORIGINAL
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§3121. Competitive Projects Payroll Incentive Program1
A. Definitions. For purposes of this Section, the following words or terms2
as used in this Chapter shall have the following meanings, unless a different meaning3
appears from the context:4
(1) "Basic health benefits plan" means coverage for basic hospital care,5
coverage for physician care, and coverage for health care which is determined by the6
Department of Economic Development to have a value of at least one dollar and7
twenty-f ive cents per hour and which is the same coverage as is provided to8
employees employed in a bona fide executive, administrative, or professional9
capacity by the employers who are exempt from the minimum wage and maximum10
hour requirements of the federal Fair Labor Standards Act, 29 U.S.C. 201, et seq.11
"Act" shall mean the Patient Protection and Affordable Care Act (enacted by Public12
Law 111-148) and subsequent consolidating amendments.13
(2) "Business" means any individual, firm, joint venture, association,14
corporation, estate, partnership, business trust, receiver, syndicate, or any other legal15
business entity.16
(3) "Code" shall mean the Internal Revenue Code of 1986 and shall17
incorporate the meaning of any Treasury Regulations promulgated under any18
Section of the Code.19
(4) "Department" means the Department of Economic Development.20
(5) "Health benefits" shall mean the following:21
(a) Employers classified as an Applicable Large Employer under Section22
4980(c)(2) of the Code which offer to provide minimum essential coverage in23
accordance with Section 5000A(f)(1)(B) of the Code for employer sponsored plans24
to the employee and such coverage must comply with the requirements for minimal25
essential coverage under Section 36B(c)(2)(C) of the Code, and shall not be subject26
to any assessable payments under Sections 4890H(a)(1) or (b) of the Code after27
ninety days from the effective date of qualifying for the incentive rebates pursuant28
to the provisions of this Chapter.29 HLS 13RS-903 ORIGINAL
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(b) Employers not classified as an Applicable Large Employer under Section1
4980(c)(2) of the Code, shall either offer to provide minimum essential coverage in2
accordance with Section 5000A(f)(1)(B) of the Code for employer sponsored plans3
to the employee and such coverage must comply with the requirements for minimal4
essential coverage under Section 36B(c)(2)(C) of the Code, or pay a benefit of one5
dollar twenty-five cents per hour to the employee. Furthermore, beginning January6
1, 2014, the employer shall provide the employee, at the time of hiring, written7
notice informing the employee of the existence of an Exchange and how the8
employee may contact the Exchange to request assistance.9
(6) “Exchange” shall have the same meaning as in 45 Code of Federal10
Regulations 155.20.11
(4) (7) "New jobs" means permanent full-time direct new jobs based at the12
facilities designated in the contract and filled by residents of the state.13
(5) (8) "New payroll" means payment by the business to its employees for14
new jobs, exclusive of benefits, and defined as wages under Louisiana Employment15
Security Law (R.S. 23:1472(20)).16
(6) (9) "Program" means the Competitive Projects Payroll Incentive17
Program.18
(7) (10) "Qualified business" means a business certified by the secretary as19
meeting the eligibility requirements of Subsection B of this Section, approved by the20
Joint Legislative Committee on the Budget to participate in the program, and21
executing a contract providing the terms and conditions for its participation.22
(8) (11) "Secretary" means the secretary of the Department of Economic23
Development.24
(9) (12) "Significant positive economic benefit" means net positive tax25
revenue. This shall be determined by taking into account direct, indirect, and induced26
impacts based on a standard economic impact methodology utilized by the27
department, the value of the rebate, and any other state tax and financial incentives28
that are used by the department to secure the project.29 HLS 13RS-903 ORIGINAL
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B. Eligibility requirements. (1) A business shall be eligible for participation1
in the program if all of the following requirements are met:2
(a) At least fifty percent of the total annual sales of the business from a3
Louisiana site or sites is to out-of-state customers or buyers, or to in-state customers4
or buyers who resell the product or service to an out-of-state customer or buyer for5
ultimate use, or the federal government, or any combination thereof.6
(b) The business will primarily engage in one of the following activities at7
the project site:8
(i) Manufacturing of the following types of durable goods: automobiles,9
motorcycles or other passenger vehicles, or components thereof; aircraft or10
components thereof; spacecraft or components thereof; medical devices; batteries or11
other power storage devices; motors, engines, turbines or components thereof;12
environmental control systems; household appliances; computers, computer13
peripherals or components thereof; communications equipment; audio or video14
equipment; semiconductors; consumer-oriented electronic devices or components15
thereof; industrial machinery; or construction heavy equipment such as excavators.16
(ii) Manufacturing of pharmaceutical products.17
(iii) Conversion of natural gas to diesel, jet fuel, or other refined fuels.18
(iv) Data storage or data services, provided at least seventy-five percent of19
sales meet the out-of-state sales requirements of Subparagraph (1)(a) of this20
Subsection.21
(v) Other activities as recommended by the secretary and approved by the22
Joint Legislative Committee on the Budget.23
(c) The business offers, or will offer within ninety days of the effective date24
of qualifying for the incentive rebates pursuant to the provisions of this Chapter, a25
basic health benefits plan to the individuals it employs as provided in Paragraph26
(A)(1) (A)(5) of this Section.27 HLS 13RS-903 ORIGINAL
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(2) The secretary, at his discretion, may include sales by affiliates of the1
business in determining the percentage of sales meeting the requirements of2
Paragraph (1) of this Subsection.3
(3) All of the following shall not be eligible for the program:4
(a) A business engaged in gaming or gambling.5
(b) A business primarily engaged in natural resource extraction or6
exploration, unless the project activity is conversion of natural gas to diesel, jet fuel,7
or other refined fuels.8
(c) A business primarily engaged in retail sales; real estate; professional9
services; financial services; venture capital funds; shipbuilding; wood products;10
agriculture; or manufacturing of machinery or equipment primarily intended to serve11
the energy industry.12
C. Applications and contract approval and administration. (1) At the13
invitation of the secretary, a business may apply for a contract by submitting to the14
department such certified statements and substantiating documents as the department15
may require.16
(2) The secretary may certify eligibility of the business and request approval17
by the Joint Legislative Committee on the Budget of its participation in the program18
on terms and conditions specified by the secretary in a proposed contract, if the19
secretary determines all of the following:20
(a) The business meets the eligibility requirements provided for in21
Subsection B of this Section.22
(b) Participation in the program is needed in a highly competitive site23
selection situation to encourage the business to locate or expand in the state.24
(c) Securing the project will result in a significant positive economic benefit25
to the state.26
(3)(a)(i) Upon the approval by the Joint Legislative Committee on the27
Budget of participation in the program by the business, the secretary shall execute28 HLS 13RS-903 ORIGINAL
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the contract with the business, and provide a copy to the Department of Revenue1
prior to the payment of any benefits under the contract.2
(ii) No new contract shall be approved on or after July 1, 2017, but contracts3
existing on that date may continue and may be renewed.4
(b) The contract shall provide for a rebate to the qualified business based5
upon new payroll and shall include the following provisions:6
(i) The percentage of new payroll eligible for rebate, up to a maximum of7
fifteen percent.8
(ii) The maximum amount of new payroll eligible for rebate.9
(iii) The number of new jobs and amount of new payroll required to be10
created and maintained and any other performance obligations required to be met in11
order to remain qualified for participation in the program.12
(iv) Designation of the facility or facilities eligible for participation in the13
program.14
(v) Monitoring of performance and consequences for failure to perform and15
other contract violations.16
(vi) An initial term of the contract, which may be up to five years, and any17
renewal term available at the discretion of the secretary, which may be up to an18
additional five years.19
(4)(a) In addition, a qualified business shall be entitled to either the same20
sales and use tax rebates authorized in R.S. 51:1787 for capital expenditures for the21
facility or facilities designated in the contract provided for in Subparagraph (b) of22
this Paragraph, or the project facility expense rebate provided for in Subparagraph23
(c) of this Paragraph, if the employer meets the enterprise zone program hiring24
requirements and all other limitations, procedures, and requirements in R.S. 51:1787.25
(b) Any qualified business which receives a contract pursuant to this Chapter26
shall also be entitled to a rebate of local sales and use taxes under the same27
procedures and requirements provided for in R.S. 51:1787 for approval of rebates for28
the sales and use taxes of political subdivisions and law enforcement districts,29 HLS 13RS-903 ORIGINAL
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including but not limited to the requirement that any such request for a rebate of1
local sales and use taxes be accompanied by an endorsement resolution approved by2
the governing authority of the appropriate political subdivision or law enforcement3
district in whose jurisdiction the qualified business is or will be located. A rebate of4
sales and use tax imposed by the state and political subdivisions of the state upon5
approval of the governing authority of the appropriate parish or municipality, where6
applicable, or both, and of the governing authority of any other political subdivision,7
including the sheriff in the case of law enforcement districts, for the purchases of the8
material used in the construction of a building, or any addition or improvement9
thereon, for housing any legitimate business enterprise and machinery and equipment10
used in that enterprise.11
(c) In lieu of the sales and use tax rebate, a qualified business shall be12
entitled to a project facility expense rebate equal to one and one-half one and one-13
half percent of the amount of qualified capital expenditures for the facility or14
facilities designated in the contract. For purposes of this Subparagraph, the term15
"qualified capital expenditures" means amounts classified as capital expenditures for16
federal income tax purposes related to the project plus exclusions from capitalization17
provided for in Internal Revenue Code Section 263 (a)(1)(A) through (L), minus the18
capitalized cost of land, capitalized leases of land, capitalized interest, capitalized19
costs of manufacturing machinery and equipment to the extent the capitalized20
manufacturing machinery and equipment costs are excluded from sales and use tax21
pursuant to R.S. 47:301(3), and the capitalized cost for the purchase of an existing22
building. When a qualified business purchases an existing building and capital23
expenditures are used to rehabilitate the building, only the costs of the rehabilitation24
shall be considered qualified capital expenditures. Additionally, a qualified business25
shall be allowed to increase its qualified capital expenditures to the extent the26
qualified business' capitalized basis is properly reduced by claiming a federal credit.27
A qualified business earns the project facility expense rebate in the qualified28
business' fiscal year in which the project is placed in service but the qualified29 HLS 13RS-903 ORIGINAL
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business may not be issued the project facility expense rebate until the Department1
of Economic Development signs a project completion report or such other time as2
provided for by rule or regulation. The project completion report for the project3
facility expense rebate shall adhere to the same requirements found in R.S.4
51:1787(A)(1)(a)(ii) for the sales and use tax rebate.5
(d) Any qualified business which receives a contract pursuant to this Chapter6
may also apply for a rebate of local sales and use taxes under the following7
procedures and requirements:8
(i) The request for a rebate of local sales and use tax is accompanied by an9
endorsement resolution approved by the governing body of the appropriate10
municipality, parish, port district, industrial development board, or other political11
subdivision or the written approval of the office of sheriff in the case of a law12
enforcement district, in whose jurisdiction the establishment is to be located.13
(ii) The endorsement resolution or letter of approval is to be submitted by14
the governing body or sheriff's office within ninety days of receipt of notification15
that the department has received an advance notification to file an application for16
benefits under this Chapter. The department shall notify the appropriate local17
governing body or sheriff's office of receipt of the application by certified mail.18
(iii) If the governing body of the appropriate jurisdiction has not submitted19
an endorsement resolution, written reasons for denial, or a written request for delay20
of consideration of the application, the board may take unilateral action, for the21
rebate of sales and use taxes imposed by the state only, in approving or denying the22
request.23
(iv) If there are no local sales and use taxes that can be rebated, as in the24
event that all such taxes are dedicated, no endorsement resolution shall be required25
of a local governing authority before the board considers its application for benefits26
under this Chapter.27 HLS 13RS-903 ORIGINAL
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D. The sales and use tax rebate and the project facility expense rebate shall1
be paid according to the terms of the contract between the department and the2
qualified business.3
E. Payment of Local Sales and Use Tax Rebate4
(1) The business shall its application for rebate of local sales and use tax5
prior to beginning construction of its building, or any addition or improvement6
thereon, prior to installation of the machinery or equipment to be used in the7
enterprise zone, or prior to beginning use of customer-owned tooling used in a8
compression molding process.9
(2) At any time subsequent to the deadlines established in Paragraph 1 of this10
Subsection, if the board determines that the business was unable to file the request11
for good cause, within the time frame provided, the board may consider a late12
request. The burden of establishing good cause shall be born by the business making13
the rebate application.14
(3) Within ninety days from the date that a properly completed rebate15
application was received by the appropriate local taxing authority, the taxing16
authority shall review the rebate request and issue a rebate check to the taxpayer for17
allowed items and shall notify the taxpayer of any disallowed items.18
(4) For purposes of this Subsection, a properly completed rebate request19
shall mean a rebate request that includes the general information required on the face20
of the request, is signed, and includes a copy of each invoice and all required21
schedules.22
(5) Within sixty days from receipt of the notification of disallowed items, the23
taxpayer shall resubmit a properly completed rebate request for disallowed items to24
the taxing authority for reconsideration. The time periods for reconsideration of25
disallowed items in a rebate request shall be the same as the time periods for26
consideration of the initial rebate request.27
(6) Rebate requests may be submitted electronically with the approval of the28
local taxing authority.29 HLS 13RS-903 ORIGINAL
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(7) Failure by a local taxing authority to timely process and pay a local sales1
and use tax rebate in accordance with the provisions of this Subsection shall entitle2
the taxpayer to interest on the amount of the allowed items contained in the properly3
completed rebate request.4
(8) Interest shall begin to accrue on the date the properly completed rebate5
request or reconsideration of disallowed items in a properly completed rebate request6
is received by the taxing authority at the rate established pursuant to the provisions7
of R.S. 13:4202.8
(9) Sales and use taxes imposed by a political subdivision which are9
dedicated to the repayment of bonded indebtedness or dedicated to schools shall not10
be eligible for rebate. All other state and local sales and use taxes shall be eligible11
for rebate.12
(10) No governing authority of a political subdivision or sheriff's office shall13
charge any fee or require any employment practice that conflicts with state or federal14
law as a precondition to authorizing tax benefits under this Chapter. The governing15
authority of each political subdivision or sheriff's office shall, after all requirements16
of this Chapter have been met, promptly rebate any sales and use taxes to the entity17
entitled to such rebate.18
(11) If the collecting agencies receive notice that the rebate, or any part19
thereof, has ceased by reason of a violation of the terms of the contract under which20
it was granted, then the amount of the rebate for the year in which the violation21
occurred and for each year thereafter in which the violation is not remedied shall be22
considered a tax due as of December thirty-first of the year in which the violation23
occurred, and for each year thereafter in which a rebate is claimed and the violation24
is not remedied, and it shall be collected by the collecting agencies in the same25
manner and subject to the same provisions for the collection of other tax debts.26
D. F. Annual Certification of Eligibility. (1) The qualified business shall27
file requests for approval of annual payroll rebates with the department. The request28
shall include documentation signed by a corporate officer of the qualified business29 HLS 13RS-903 ORIGINAL
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certifying its continued eligibility for the program, as provided in Subsection B of1
this Section, and its actual new payroll and the performance of any other contractual2
obligations for the subject year. The qualified business may be subject to a limited3
audit by the department, at the expense of the qualified business, to verify such4
eligibility and performance. The approved contract between the qualified business5
and the department shall authorize the continued rebate as long as the business6
remains eligible for the program and complies with the terms and performance7
obligations of the contract. If a qualified business fails to maintain the eligibility8
requirements for participation in the program or fails to meet all performance9
obligations of the contract, the secretary may suspend or terminate its participation10
in the program.11
(2)(a) After verification of continued eligibility and performance, the12
department shall send a payroll rebate certification letter to the Department of13
Revenue, stating the amount of actual new payroll for the subject year, the amount14
of rebate to be issued, and the entity to which the rebate shall be issued. The15
Department of Revenue may require the business to submit additional information16
as may be necessary to properly issue the rebate. Payment of payroll rebates shall17
be made from the current collections of the taxes imposed pursuant to Title 47 of the18
Louisiana Revised Statutes of 1950, as amended.19
(b) No payment of a rebate shall be made under a specific contract during20
the fiscal year in which such contract is approved by the Joint Legislative Committee21
on the Budget.22
E. G. Incentive limitations. A taxpayer shall not receive any other incentive23
administered by the Department of Economic Development for any expenditures or24
jobs for which the taxpayer has received a rebate pursuant to this Section.25
F. H. Economic Analysis Verification. Prior to the implementation of the26
program, an independent third-party economist selected by the Legislative Fiscal27
Office and the department, and retained by the department after approval of the Joint28 HLS 13RS-903 ORIGINAL
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Legislative Committee on the Budget, shall verify the standard economic impact1
methodology utilized by the department.2
G. I. Rules. The department may promulgate rules and regulations after3
approval of the House Committee on Ways and Means and the Senate Committee4
on Revenue and Fiscal Affairs meeting jointly within sixty days of publication of5
such proposed rules and regulations in the State Register.6
Section 3. R.S. 51:2453(6) is hereby repealed in its entirety.7
Section 4. This Act shall take effect and become operative if and when the Acts8
which originated as House Bill Nos. ___ of this 2013 Regular Session of the Legislature are9
enacted and become effective.10
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)]
Robideaux HB No. 571
Abstract: Creates a tax credit registry and establishes various rebate programs and
provides for the administration of the programs and rebate payments to eligible
applicants.
Proposed law establishes a tax credit registry and creates the following rebate programs:
(1)Family Assistance Rebate Program.
(2)Rebate Program for Assistance for Retirees and Military.
(3)Rebate for local inventory taxes.
(4)Rebate for taxes paid with respect to vessels in Outer Continental Shelf Lands Act
Waters.
(5)Rebates for motion picture investors.
(6)Rebate for property taxes paid by certain telephone companies.
(7)Rehabilitation of Historic Structures Rebate.
(8)School Readiness Child Care Expense Program.
(9)Research and Development Rebate. HLS 13RS-903 ORIGINAL
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(10)Angel Investor Rebate Program.
(11)Digital interactive media and software.
(12)Sound recording investor rebate.
(13)Musical and theatrical productions rebate.
(14)Ports of Louisiana rebates.
Proposed law makes various changes to the Enterprise Zone Program and to the Competitive
Projects Payroll Incentive Program.
Effective if and when House Bill Nos. ___ of this 2013 Regular Session are enacted and
become effective.
(Amends R.S. 51:1791, 2453(1), (2)(a), (3), (4), (5)(intro. para.), 2454(A), (B)(1)(intro.
para.), 2457(A)(1), (B), and (C), 2458(7), and 3121; Adds R.S. 47:6039 and 6360 through
6374, and R.S. 51:1792, 1793, 1794, and 2453(8)(g))