HLS 13RS-483 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 630
BY REPRESENTATIVES LEGER, BROSSETT, BURFORD, HENRY BURNS,
JEFFERSON, MORENO, AND PATRI CK WILLIAMS AND SENATOR
MORRELL
TAX CREDITS: Provides for the transferability of the income tax credit for the
rehabilitation of historic commercial structures
AN ACT1
To amend and reenact R.S. 47:6019(A)(1)(a), (2)(a), (3)(a), (b)(i)(aa), and (cc), (3)(b)(ii)(aa)2
and (dd)(I), (B)(1)(a) and (C) and to enact R.S. 22:832(F) and R.S.3
47:6019(3)(b)(i)(dd) and (ii)(dd)(IV), relative to tax credits for the rehabilitation of4
historic structures; to provide for income, premium, and corporation franchise tax5
credits for costs associated with the rehabilitation of historic structures; to provide6
for certain eligible municipalities and qualifications; to provide with respect to7
definitions; to provide for certain notifications and requirements; to extend the8
taxable periods in which the tax credit shall be applicable; to provide for an effective9
date; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 22:832(F) is hereby enacted to read as follows:12
§832. Reduction of tax when certain investments are made in Louisiana13
* * *14
F. There shall be a premium tax reduction credit for costs associated15
with the rehabilitation of historic structures, as provided for in R.S. 47:6019, on taxes16
charged on insurance premiums pursuant to Title 22 of the Louisiana Revised17
Statutes of 1950, including but not limited to R.S. 22:345, 439, 831, 836, 837, 838,18
and 842. No premium tax reduction credit shall be allowed for any eligible costs and19 HLS 13RS-483 ORIGINAL
HB NO. 630
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expenses, as defined in R.S. 47:6019, that would entitle the insurer to a reduction in1
premium tax pursuant to Subsection A of this Section as a qualifying Louisiana2
investment in real property located in this state. Notwithstanding any other3
provisions of law to the contrary, the premium tax reduction credits authorized4
pursuant to this Subsection may be sold or transferred as provided for in R.S.5
47:6019(A)(3)(b) and carried forward as provided for in R.S. 47:6019(A)(3)(a).6
Section 2. R.S. 47:6019(A)(1)(a), (2)(a), (3)(a), (b)(i)(aa), and (cc), (3)(b)(ii)(aa) and7
(dd)(I), (B)(1)(a) and (C) are hereby amended and reenacted and R.S. 47:6019(3)(b)(i)(dd)8
and (ii)(dd)(IV) are hereby enacted to read as follows: 9
§6019. Tax credit; rehabilitation of historic structures10
A.(1)(a) There shall be a credit against the premium tax as provided for in11
R.S. 22:832(F), income and corporation franchise tax for the amount of eligible costs12
and expenses incurred during the rehabilitation of a historic structure located in a13
downtown development, or a cultural product district, or a municipality with a14
population of less than fifteen thousand persons according to the latest federal15
decennial census. The credit shall not exceed twenty-five percent of the eligible costs16
and expenses of the rehabilitation. No taxpayer, or any entity affiliated with such17
taxpayer, shall receive claim more than five million dollars of credit annually for any18
number of structures rehabilitated within a particular downtown development, or19
cultural product district, or municipality with a population of less than fifteen20
thousand persons according to the latest federal decennial census.21
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(2)(a) In order to qualify for the credit, the historic structure located in the23
downtown development, or cultural product district, or municipality with a24
population of less than fifteen thousand persons according to the latest federal25
decennial census, shall also be listed on the National Register of Historic Places or26
be certified by the state historic preservation office as contributing to the historical27
significance of the district.28
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(3)(a) The credit shall be allowed against the income tax for the taxable1
period in which the credit is earned, the premium tax for the taxable period in which2
the credit is earned, and against the franchise tax for the taxable period following the3
taxable period in which the credit is earned. If the tax credit allowed pursuant to this4
Section exceeds the amount of such taxes due, any unused credit may be carried5
forward as a credit against subsequent tax liability for a period not to exceed five6
years. This credit may be used in addition to the twenty percent federal tax credit for7
such purposes.8
(b)(i)(aa) Persons who are awarded tax credits may elect to sell their9
unused tax credits to one or more individuals or entities. The tax credits may be10
transferred or sold by a taxpayer or any subsequent transferee an unlimited number11
of times. Notwithstanding any other provisions of law to the contrary, once a tax12
credit is claimed by a taxpayer against the premium tax, any subsequent transferee13
of such tax credit shall be limited to claim the credit against the same tax type.14
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(cc) Transferors and transferees shall submit to the state historic preservation16
office and to the Department of Revenue in writing a notification of any transfer or17
sale of tax credits within thirty days after the transfer or sale of such tax credits. The18
notification shall include the transferor's tax credit balance prior to transfer, the19
credit identification number assigned by the state historic preservation office, the20
remaining balance after transfer, all federal and Louisiana tax identification numbers21
for both transferor and transferee, the date of transfer, the amount transferred, and22
any other information required by the state historic preservation office or the23
Department of Revenue. Failure to comply with this notification provision will result24
in the disallowance of the tax credit until the parties are in full compliance.25
(dd) Taxpayers claiming tax credits against premium taxes received by26
transfer shall include a notification of transfer or sale of tax credits as an attachment27
to the premium tax return filed with the Department of Insurance. The notification28
shall include the transferor’s tax credit balance prior to the transfer, the credit29 HLS 13RS-483 ORIGINAL
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identification number assigned by the state historic preservation office, the remaining1
balance after transfer, all federal tax identification numbers and Department of2
Insurance account numbers for both transferor and transferee, the date of transfer,3
the amount transferred, and any other information required by the Department of4
Insurance. Failure to comply with this notification requirement will result in the5
disallowance of the tax credit until the taxpayer is in full compliance.6
(ii)(aa) All entities taxed as corporations for Louisiana income, premium,7
or corporation franchise tax purposes shall claim any credit allowed under this 8
Section on their corporation income, corporation premium, and corporation franchise9
tax return.10
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(dd) Entities not taxed as corporations shall claim any credit allowed under12
this Section on the returns of the partners or members as follows:13
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(I) Corporate partners or members shall claim their share of the credit on their15
corporation income, corporation premium, or corporation franchise tax returns.16
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(IV) All required to pay the insurance premium tax shall claim any credit18
allowed under this Section on their annual premium tax statement.19
B.(1) Definitions. For purposes of this Section, the following words and20
phrases shall have the meanings ascribed to them in this Subsection:21
(a) "Cultural product district" shall mean a district designated by a local22
governing authority in accordance with law for the purpose of revitalizing a23
community by creating a hub of cultural activity, including affordable artist housing24
and workspace. The Department of Culture, Recreation and Tourism shall develop25
standard criteria for cultural product districts. Such criteria shall include that the26
district must be geographically contiguous and distinguished by cultural resources27
that play a vital role in the life and cultural development of a community. The district28
shall focus on a cultural compound, a major art institution, art and entertainment29 HLS 13RS-483 ORIGINAL
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businesses, an area with arts and cultural activities or cultural or artisan production1
and be engaged in the promotion, preservation, and educational aspects of the arts2
and culture of the locale and contribute to the public through interpretive and3
educational uses. The Department of Culture, Recreation and Tourism may4
determine whether or not a district complies with this definition.5
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C. The provisions of this Section shall be effective for the taxable years 7
ending prior to January 1, 2016 2018.8
Section 3. This Act shall become effective upon signature by the governor or, if not9
signed by the governor, upon expiration of the time for bills to become law without signature10
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If11
vetoed by the governor and subsequently approved by the legislature, this Act shall become12
effective on the day following such approval.13
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Leger HB No. 630
Abstract: For the tax credit for rehabilitation of historic commercial structures, adds
eligibility for structures in certain municipalities and authorizes the taking of the
credit against insurance premium tax liability.
Present law authorizes an income and corporation franchise tax credit for the amount of
eligible costs and expenses incurred during the rehabilitation of a historic structure located
in a downtown development or a cultural product district. The credit shall not exceed 25%
of the eligible costs and expenses of the rehabilitation. Present law prohibits a taxpayer from
receiving more than $5 million of credit for any number of structures rehabilitated within
a particular downtown development or cultural product district.
Proposed law retains present law and authorizes a premium tax credit on taxes charged on
insurance premiums certain for the amount of eligible costs and expenses incurred during
the rehabilitation of a historic structure located within a cultural district, downtown
development district or a municipality with a population of less than 15,000 persons
according to the latest federal decennial census.
Present law designates that the historic structure must be located in a cultural product district
or a downtown development district to apply for the tax credit.
Proposed law retains present law but changes the designation of "cultural product district"
to "cultural district" and adds eligibility for structures located within a municipality with a
population of less than 15,000 persons according to the latest federal decennial census. HLS 13RS-483 ORIGINAL
HB NO. 630
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are additions.
Present law provides that if the amount of the tax credit exceeds the amount of taxes due,
any unused credit may be carried forward as a credit against subsequent tax liability for a
period not to exceed five years.
Present law authorizes taxpayers to sell their unused tax credits to other individuals or
entities. There is no limit on the number of times a credit may be transferred or sold.
Proposed law retains present law.
Present law requires the transferors and transferees to submit to the state historic
preservation office and to the Department of Revenue a written notification of any transfer
or sale of tax credits within 30 days of the transaction. Further requires the notification to
include the tax credit balance prior to the transfer, the credit identification number assigned
by the state historic preservation office, the remaining balance after the transfer, the amount
of the transfer, and any other information required by the state historic preservation office
or the Department of Revenue.
Proposed law retains present law but removes the state historic preservation office from the
notice requirements.
Proposed law requires taxpayers claiming tax credits against premium taxes received by
transfer to include a notification of the transfer or sale of tax credits as an attachment to the
premium tax return filed with the Department of Insurance.
Present law provides that the provisions of present law shall be effective for all taxable years
ending prior to Jan. 1, 2016.
Proposed law retains present law and extends the tax credit applicability from taxable years
ending prior to Jan. 1, 2016, to taxable years ending prior to Jan. 1, 2018.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6019(A)(1)(a), (2)(a), (3)(a), (b)(i)(aa), and (cc), (3)(b)(ii)(aa) and (dd)(I),
(B)(1)(a) and (C); Adds R.S. 22:832(F) and R.S. 47:6019(3)(b)(i)(dd) and (ii)(dd)(IV))