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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), and (3)(b)(i)(cc), (B)(1)(a), and (C),2
relative to tax credits for the rehabilitation of historic structures; to provide for3
income and corporation franchise tax credits for costs associated with the4
rehabilitation of historic structures; to provide for certain eligible municipalities and5
qualifications; to provide with respect to definitions; to provide for certain6
notifications and requirements; to extend the taxable periods in which the tax credit7
shall be applicable; to provide for an effective date; and to provide for related8
matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 47:6019(A)(1)(a), (2)(a), and (3)(b)(i)(cc), (B)(1)(a), and (C) are11
hereby amended and reenacted to read as follows:12
ยง6019. Tax credit; rehabilitation of historic structures13
A.(1)(a) There shall be a credit against income and corporation franchise tax14
for the amount of eligible costs and expenses incurred during the rehabilitation of a15
historic structure located in a downtown development, or a cultural product district,16
or a municipality with a population of less than fifteen thousand persons according17
to the latest federal decennial census. The credit shall not exceed twenty-five percent18
of the eligible costs and expenses of the rehabilitation. No taxpayer, or any entity19 HLS 13RS-483 ENGROSSED
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affiliated with such taxpayer, shall receive claim more than five million dollars of1
credit annually for any number of structures rehabilitated within a particular2
downtown development, or cultural product district, or municipality with a3
population of less than fifteen thousand persons according to the latest federal4
decennial census.5
* * *6
(2)(a) In order to qualify for the credit, the historic structure located in the7
downtown development, or cultural product district, or municipality with a8
population of less than fifteen thousand persons according to the latest federal9
decennial census, shall also be listed on the National Register of Historic Places or10
be certified by the state historic preservation office as contributing to the historical11
significance of the district.12
* * *13
(3)14
* * *15
(b)(i)16
* * *17
(cc) Transferors and transferees shall submit to the state historic preservation18
office and to the Department of Revenue in writing a notification of any transfer or19
sale of tax credits within thirty days after the transfer or sale of such tax credits. The20
notification shall include the transferor's tax credit balance prior to transfer, the21
credit identification number assigned by the state historic preservation office, the22
remaining balance after transfer, all federal and Louisiana tax identification numbers23
for both transferor and transferee, the date of transfer, the amount transferred, and24
any other information required by the state historic preservation office or the25
Department of Revenue. Failure to comply with this notification provision will result26
in the disallowance of the tax credit until the parties are in full compliance.27
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B.(1) Definitions. For purposes of this Section, the following words and1
phrases shall have the meanings ascribed to them in this Subsection:2
(a) "Cultural product district" shall mean a district designated by a local3
governing authority in accordance with law for the purpose of revitalizing a4
community by creating a hub of cultural activity, including affordable artist housing5
and workspace. The Department of Culture, Recreation and Tourism shall develop6
standard criteria for cultural product districts. Such criteria shall include that the7
district must be geographically contiguous and distinguished by cultural resources8
that play a vital role in the life and cultural development of a community. The district9
shall focus on a cultural compound, a major art institution, art and entertainment10
businesses, an area with arts and cultural activities or cultural or artisan production11
and be engaged in the promotion, preservation, and educational aspects of the arts12
and culture of the locale and contribute to the public through interpretive and13
educational uses. The Department of Culture, Recreation and Tourism may14
determine whether or not a district complies with this definition.15
* * *16
C. The provisions of this Section shall be effective for the taxable years 17
ending prior to January 1, 2016 2018.18
Section 2. This Act shall become effective upon signature by the governor or, if not19
signed by the governor, upon expiration of the time for bills to become law without signature20
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21
vetoed by the governor and subsequently approved by the legislature, this Act shall become22
effective on the day following such approval.23 HLS 13RS-483 ENGROSSED
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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 extends the tax credit
applicability from taxable years ending prior to Jan. 1, 2016, to taxable years ending
prior to Jan. 1, 2018.
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.
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.
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.
Present law requires transferors and transferees of tax credits to submit to the state historic
preservation office and to the Dept. 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
Dept. of Revenue.
Proposed law retains present law but removes the state historic preservation office from the
notice requirements.
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)(b)(i)(cc), (B)(1)(a), and (C))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Deletes authorization for the tax credit to apply against the premium tax.
2. Deletes provisions relative to claiming tax credits against premium taxes.