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Regular Session, 2013
HOUSE BILL NO. 689
BY REPRESENTATIVE RICHARD
TAX/INCOME TAX: Provides with respect to individual income tax rates, exemptions,
credits, and deductions
AN ACT1
To amend and reenact R.S. 47:32(A), 37(A), (B)(5), (C), (D)(2), and (E), 293,2
6004(A)(2)(introductory paragraph), 6005(C)(1), 6006(A) and (B), 6006.1(A) and3
(B), 6007(C)(1), 6008(A), 6009(D)(1), 6014(A), (B), and (C), 6015(B)(1) and (2),4
6016(C), (D), (E)(4), and (F)(1)(introductory paragraph), 6017(A), 6018(B) and (D),5
6019(A)(1)(a) and (3), 6020(D)(2)(a) and (b) and (3), 6022(E)(2)(a), 6023(C)(1),6
6025(A), 6030(A) and (E), 6032(A), 6033(B)(1), (C), and (D), 6034(D), 6035(C),7
(F), and (G), 6036(C)(1)(a)(introductory paragraph) and (4) and (I)(2)(a)(i),8
6037(B)(introductory paragraph) and (C), 6105, 6107, and 6108(B) and to repeal9
R.S. 47:33, 43, 44, 45 through 51, 53 through 54, 56 through 59, 60, 60.1, 65, 68, 79,10
294, 297(B) through (D) and (F) through (P), 297.1 through 297.12, 6104, and 6106,11
relative to the individual income tax; to reduce the rates for such tax; to provide with12
respect to individual income tax deductions, exemptions, and credits; to repeal13
certain individual income tax deductions, exemptions, and credits; to provide for an14
effective date, credits; and to provide for related matters.15
Be it enacted by the Legislature of Louisiana:16
Section 1. R.S. 47:32(A), 37(A), (B)(5), (C), (D)(2), and (E), 293,17
6004(A)(2)(introductory paragraph), 6005(C)(1), 6006(A) and (B), 6006.1(A) and (B),18
6007(C)(1), 6008(A), 6009(D)(1), 6014(A), (B), and (C), 6015(B)(1) and (2), 6016(C), (D),19
(E)(4), and (F)(1)(introductory paragraph), 6017(A), 6018(B) and (D), 6019(A)(1)(a) and20
(3), 6020(D)(2)(a) and (b) and (3), 6022(E)(2)(a), 6023(C)(1), 6025(A), 6030(A) and (E),21 HLS 13RS-1042 ORIGINAL
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6032(A), 6033(B)(1), (C), and (D), 6034(D), 6035(C), (F), and (G),1
6036(C)(1)(a)(introductory paragraph) and (4) and (I)(2)(a)(i), 6037(B)(introductory2
paragraph) and (C), 6105, 6107, and 6108(B) are hereby amended and reenacted to read as3
follows: 4
§32. Rates of tax5
A. On individuals. The tax to be assessed, levied, collected and paid upon6
the taxable income of an individual shall be computed at the following rates:7
(1) Two One and one-quarter of one percent on that portion of the first8
twelve thousand five hundred dollars of net income which is in excess of the credits9
against net income provided for in R.S. 47:79;10
(2) Four Two and one-half of one percent on the next thirty-seven thousand11
five hundred dollars of net income;12
(3) Six Three and three-quarters of one percent on any amount of net income13
in excess of fifty thousand dollars of net income.14
* * *15
§37. Tax credit for contributions to educational institutions 16
A. The intent of this Section is to provide an incentive to corporations,17
persons, estates, and trusts to contribute or donate, or sell below cost tangible18
movable property to public educational institutions for purposes of research, research19
training, or direct education of students in the state. Any corporation, person, estate,20
and trust contributing, donating, or selling below cost tangible movable property to21
educational institutions as specified herein shall be allowed a credit against the tax22
liability due under the income tax as determined pursuant to Subsection C of this23
Section.24
B. For purposes of this Section the following words and phrases shall have25
the following meanings: 26
* * *27
(5) "Persons, estates, Estates and trusts" shall be as defined by R.S. 47:31.28
* * *29 HLS 13RS-1042 ORIGINAL
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C. There shall be allowed a credit against the tax liability due under the1
corporation income tax for donations, contributions, or sales below cost of tangible2
movable property made to educational institutions in the state of Louisiana. The3
credit allowed by this Section shall be computed at the rate of forty percent of such4
property's value, as defined herein, or, in the case of a sale below cost, forty percent5
of the difference between the price received for the tangible movable property by the6
taxpayer and the value of the property as defined herein. The credit shall be limited7
to the total of the corporation tax liability for the taxable year for which it is being8
claimed and shall be in lieu of the deductions from gross income provided for in R.S.9
47:57. The credit shall not be allowed if the taxpayer arbitrarily, capriciously, or10
unreasonably discriminates against any person because of race, religion, ideas,11
beliefs, or affiliations.12
D.13
* * *14
(2) The value of the credit against any corporation income tax due shall be15
based upon the donor's or seller's actual cost of new items of such property and not16
on retail value and upon appraised value of used items of such property. When new17
property is donated, contributed, or sold as provided herein, the donor or seller shall18
furnish to the board of jurisdiction an invoice showing the donor's or seller's actual19
purchase price. When used property is donated, contributed, or sold below cost, an20
appraisal shall be obtained by the institution accepting the donation or contribution21
or purchasing the used property, which shall furnish to the donor or seller a22
certification of such donation, contribution, or sale below cost which shall include23
the date and the value of the donation or contribution or property sold. Used24
property sold below cost shall mean a sale below the appraised value. The donor25
shall attach the certification to the corporation income tax return filed with the26
Department of Revenue.27
E.(1) Any corporation, person, estate, or trust contributing, donating, or28
selling for less than cost any tangible movable property to an educational institution29 HLS 13RS-1042 ORIGINAL
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shall enter into an orientation agreement with the educational institution receiving1
said contribution, donation, or purchase. Such orientation must be provided at no2
cost to said institution and shall be provided at a location as determined pursuant to3
said agreement. Orientation shall occur within two weeks after installation of such4
property.5
(2) If requested by the donee or purchaser, any corporation, person, estate,6
or trust contributing, donating, or selling any tangible movable property to an7
educational institution shall enter into a minimum three months maintenance/service8
maintenance or service agreement with the educational institution receiving said9
contribution or said donation in order to receive tax credit provided herein.10
(3) Any software/courseware software or courseware donated under the11
provisions of this Section shall be compatible with the existing hardware of the12
educational institution.13
* * *14
§293. Definitions15
The following definitions shall apply throughout this Part, unless the context16
requires otherwise:17
(1) "Adjusted gross income" means, for any taxable year and for any18
individual, the adjusted gross income of the individual for the taxable year that is19
reportable on the individual's federal income tax return.20
(2)(a)(i) "Construction code retrofitting deduction" for the purposes of this21
Part, means an amount equal to fifty percent of the cost paid or incurred on or after22
January 1, 2007, by a taxpayer to voluntarily retrofit an existing residential structure,23
for which the taxpayer claims the homestead exemption for ad valorem tax purposes,24
excluding rental property, as provided for in Subparagraph (e) of this Paragraph to25
bring it into compliance with the State Uniform Construction Code, less the value of26
any other state-, municipal-, or federal-sponsored financial incentives for such cost27
paid.28 HLS 13RS-1042 ORIGINAL
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(ii) "Voluntarily retrofit an existing residential structure" means that the1
retrofitting is not a construction, reconstruction, alteration, or repair of such structure2
required by the State Uniform Construction Code because the structure is a new3
residential structure or because of damage or destruction of an existing residential4
structure.5
(b) The total amount of deduction granted to a taxpayer under this Paragraph6
shall not exceed five thousand dollars per retrofitted residential structure. The7
deduction earned under this Paragraph shall be claimed on the return for the taxable8
year in which the work is completed.9
(c) In order to qualify for the deduction, the taxpayer shall submit with his10
return proof that the work completed complies with the State Uniform Construction11
Code and any information verifying the total cost of the project and that the project12
was a voluntary project as provided for in this Paragraph as may be required by the13
Department of Revenue by rule or regulation.14
(d) The secretary of the Department of Revenue shall promulgate such rules15
and regulations in accordance with the Administrative Procedure Act as may be16
necessary to carry out the provisions of this Paragraph.17
(e) As used in this Paragraph, "retrofit" means improvements to a previously18
constructed structure regarding any of the following:19
(i) Roof deck attachment.20
(ii) Secondary water barrier.21
(iii) Roof covering.22
(iv) Gable ends bracing.23
(v) Roof-to-wall connections.24
(vi) Opening protection.25
(vii) Exterior doors, including garage doors.26
(f) A taxpayer shall not receive any other state tax credit, exemption,27
exclusion, deduction, or any other tax benefit for items of tangible personal property28
for which the taxpayer has received a tax credit under this Paragraph.29 HLS 13RS-1042 ORIGINAL
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(3) "Excess federal itemized personal deductions" for the purposes of this1
Part, means the following percentages of the amount by which the federal itemized2
personal deductions exceed the amount of federal standard deductions which is3
designated for the filing status used for the taxable period on the individual income4
tax return required to be filed:5
(a) For tax years beginning during calendar year 2007, fifty-seven and one6
half percent of such excess federal itemized personal deductions.7
(b) For tax years beginning during calendar year 2008, sixty-five percent of8
such excess federal itemized personal deductions.9
(c) For all tax years beginning on and after January 1, 2009, one hundred10
percent of such excess federal itemized personal deductions.11
(4) (2) "Federal income tax liability", for the purpose of this Part, means the12
total amount of tax due to the United States for the taxable period on the individual13
income tax return required to be filed by any taxpayer, except that:14
(a) Social security taxes and self-employment taxes shall not be included.15
(b)(i) Beginning for taxable years beginning in 2004, the federal income tax16
liability shall be increased by any federal income tax credits determined by the17
secretary to be disaster relief credits.18
(ii) Any determination to be made by the secretary as provided for in this19
Subparagraph and in R.S. 47:287.85(C)(2) shall be made in accordance with rules20
and regulations promulgated by the secretary and approved by the Senate Committee21
on Revenue and Fiscal Affairs Committee and the House Committee on Ways and22
Means meeting jointly.23
(c) Federal income tax rebates and credits received by a taxpayer for the24
2008 tax year under the provisions of Section 6428 of the Internal Revenue Code as25
enacted in the federal Economic Stimulus Act of 2008 shall not reduce the federal26
income tax liability.27
(5) (3) "Hurricane recovery entity" means the Road Home Corporation as28
provided for in Chapter 3-E of Title 40 of the Louisiana Revised Statutes of 1950,29 HLS 13RS-1042 ORIGINAL
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the Louisiana Recovery Authority as provided for in Part V of Chapter 2 of Title 491
of the Louisiana Revised Statutes of 1950, the disaster recovery unit within the office2
of community development, division of administration, or the Louisiana Family3
Recovery Corps.4
(6) (4) "Individual" means a natural person. However, for any taxable year,5
a husband and wife may file a joint income tax return and a surviving spouse may6
file a joint income tax return on behalf of the survivor and the deceased for the year7
in which the death occurred, if the survivor has not remarried during the year of8
death.9
(7)(a) "The recreation volunteer and volunteer firefighter deduction" for the10
purposes of this Part, means a deduction in the amount of five hundred dollars per11
tax year for individuals who volunteer for recreation departments and volunteer fire12
departments.13
(b) In order to qualify for the deduction for volunteers for recreation14
departments, the taxpayer must comply with the following requirements:15
(i) The taxpayer must serve as a volunteer for thirty or more hours during the16
taxable year.17
(ii) The taxpayer must be registered by the recreation department as a18
volunteer.19
(iii) The recreation department must be operated by the state of Louisiana20
or a political subdivision of the state.21
(c) The recreation department shall certify in writing that the taxpayer served22
as a volunteer for thirty or more hours during the year and that the taxpayer was not23
compensated for these services. The certification shall include the taxpayer's name,24
address, and social security number and the name and address of the recreation25
department.26
(d) In order to qualify for the deduction as a volunteer firefighter, the27
individual shall complete twenty- four hours of continuing education annually, and28
shall be an active member of the Louisiana State Fireman's Association, or on the29 HLS 13RS-1042 ORIGINAL
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departmental personnel roster for the State Fire Marshal's Volunteer Fireman's1
Insurance Program.2
(8) (5) "Tax" or "tax liability" means the liability for all amounts owing by3
an individual to the state of Louisiana under this Part.4
(9)(a) (6) "Tax table income", for resident individuals, means adjusted gross5
income plus interest on obligations of a state or political subdivision thereof, other6
than Louisiana and its municipalities, title to which obligations vested with the7
resident individual on or subsequent to January 1, 1980, and less:8
(i) Any gratuitous grant, loan, or other benefit directly or indirectly provided9
to a taxpayer by a hurricane recovery entity if such benefit was included in federal10
adjusted gross income.11
(ii) (a) Federal income tax liability.12
(iii) (b) Income exempt from taxation under the laws of Louisiana or which13
Louisiana is prohibited from taxing by the constitution or laws of the United States.14
(iv) The excess, if any, of the personal exemptions and deductions provided15
for in R.S. 47:294 over the amount of the personal exemptions and deductions16
already included in the tax tables promulgated by the secretary under authority of17
R.S. 47:295.18
(v) The amount deposited in a medical savings account as defined in R.S.19
47:297.1(B), and any interest accrued thereon; however, any amount withdrawn from20
a medical savings account for purposes other than paying eligible medical expenses21
or to procure health insurance shall be included in tax table income.22
(vi) For tax years beginning on and after January 1, 2001, the amount23
deposited in an education savings account as provided in R.S. 17:3095(A)(1)(b), and24
any interest accrued thereon; however, any such deposit plus interest withdrawn from25
an education savings account for purposes other than paying qualified higher26
education expenses, as defined in R.S. 17:3092(10) shall be included in tax table27
income.28 HLS 13RS-1042 ORIGINAL
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(vii) The amount of the exclusion provided for in R.S. 47:297.3 for S Bank1
shareholders.2
(viii) For tax years beginning on and after January 1, 2005, the amount3
deposited in an education savings account as provided in R.S. 17:3095(A)(1)(c), and4
any interest accrued thereon; however, any such deposit plus interest withdrawn from5
an education savings account for purposes other than paying qualified higher6
education expenses, as defined in R.S. 17:3092 shall be included in tax table income.7
(ix) A deduction for expenses disallowed by I.R.C. Section 280C. In8
computing net income, a deduction shall be allowed for expenses which would9
otherwise be deductible under federal law, but for the disallowance provisions of10
I.R.C. Section 280C, relative to certain expenses for which federal credits are11
allowable.12
(x) The temporary teacher deduction.13
(xi) Excess federal itemized personal deductions.14
(xii) The recreation volunteer and volunteer firefighter deduction.15
(xiii) The construction code retrofitting deduction.16
(xiv) The elementary and secondary school tuition deduction as provided for17
in R.S. 47:297.10.18
(xv) The educational expenses deduction for home-schooled children as19
provided for in R.S. 47:297.11.20
(xvi) The deduction for fees and other educational expenses for a quality21
public education as provided for in R.S. 47:297.12.22
(xvii) Income from net capital gains, which shall be limited to gains23
recognized and treated for federal income tax purposes as arising from the sale or24
exchange of an equity interest in or substantially all of the assets of a nonpublicly25
traded corporation, partnership, limited liability company, or other business26
organization commercially domiciled in this state.27
(b) Interest on obligations of the state of Louisiana, its political subdivisions,28
public corporations created by them and constituted authorities thereof authorized29 HLS 13RS-1042 ORIGINAL
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to issue obligations on their behalf, title to which obligations vested with a resident1
individual shall be excluded from "tax table income" and is hereby declared exempt2
from state income taxation.3
(c) Interest on obligations of other states and their subdivisions, public4
corporations created by them and constituted authorities thereof authorized to issue5
obligations on their behalf, title to which obligations vested with a resident6
individual prior to January 1, 1980, shall be excluded from "tax table income" and7
if title to such obligations vests with a resident individual after January 1, 1980,8
interest thereon shall be included in "tax table income".9
(d) For the purposes of this Paragraph, income distributed by a trust,10
partnership, or mutual fund to an individual taxpayer shall retain the same character11
in his hands as it had in the hands of such distributor to the extent such income12
similarly retains its character for federal income tax purposes.13
(e) For tax years beginning after December 31, 2002, in the case of an14
individual who is on active duty as a member of the armed forces of the United15
States, which full-time duty is or will be continuous and uninterrupted for one16
hundred twenty consecutive days or more, total compensation paid for services17
performed outside this state by the armed forces of the United States of up to thirty18
thousand dollars shall be excluded from "tax table income" and is hereby declared19
exempt from state income taxation.20
(f) Repealed by Acts 2007, No. 160, §2.21
(10) (7) "Tax table income", for nonresident individuals, means the amount22
of Louisiana income, as provided in this Part, allocated and apportioned under the23
provisions of R.S. 47:241 through 247, plus the total amount of the personal24
exemptions and deductions already included in the tax tables promulgated by the25
secretary under authority of R.S. 47:295, less the proportionate amount of the federal26
income tax liability, excess federal itemized personal deductions, the temporary27
teacher deduction, the recreation volunteer and volunteer firefighter deduction, the28
construction code retrofitting deduction, any gratuitous grant, loan, or other benefit29 HLS 13RS-1042 ORIGINAL
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directly or indirectly provided to a taxpayer by a hurricane recovery entity if such1
benefit was included in federal adjusted gross income, the exclusion provided for in2
R.S. 47:297.3 for S Bank shareholders, the deduction for expenses disallowed by3
I.R.C. Section 280C, the deduction for net capital gains, and personal exemptions4
and deductions provided for in R.S. 47:294. The proportionate amount is to be5
determined by the ratio of Louisiana income to federal adjusted gross income. When6
federal adjusted gross income is less than Louisiana income, the ratio shall be one7
hundred percent.8
(11)(a) "Temporary teacher deduction" for the purposes of this Part, means9
a deduction for each tax year beginning in 2007 and 2008 only, in an amount of one10
thousand dollars for an individual who was previously employed as a public school11
classroom teacher by a school board in one of the following parishes impacted by12
Hurricane Katrina: Jefferson, Orleans, Plaquemines, St. Bernard, and St. Tammany.13
(b) In order to qualify for the deduction, the public school classroom teacher14
shall agree in writing to be employed as a public school classroom teacher for at least15
three years. The individual shall submit the agreement between the school board and16
the teacher to the Department of Revenue in order to obtain the deduction.17
* * *18
§6004. Employer credit19
A.20
* * *21
(2) The credit shall be seven hundred fifty dollars and shall be allowed22
against the corporation income tax for the taxable period during which the new23
employee has completed one year of full-time service with the taxpayer and/or24
against the corporation franchise tax for the taxable period following the taxable25
period during which the new employee has completed one year of full-time service26
with the taxpayer. Only one tax credit shall be allowed for:27
* * *28 HLS 13RS-1042 ORIGINAL
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§6005. Qualified new recycling manufacturing or process equipment and/or service1
contracts2
* * *3
C.(1) A taxpayer who purchases qualified new recycling manufacturing or4
process equipment and/or qualified service contracts as defined in this Section and5
certified by the secretary of the Department of Environmental Quality to be used or6
performed exclusively in this state shall be entitled to a credit against any7
corporation income and corporation franchise taxes imposed by the state in an8
amount equal to twenty percent of the cost of the new recycling manufacturing or9
process equipment and/or qualified service contract less the amount of any other tax10
credits received for the purchase of such equipment and/or contract.11
* * *12
§6006. Tax credits for local inventory taxes paid13
A. There shall be allowed a credit against any Louisiana corporation income14
or corporation franchise tax for ad valorem taxes paid to political subdivisions on15
inventory held by manufacturers, distributors, and retailers and on natural gas held,16
used, or consumed in providing natural gas storage services or operating natural gas17
storage facilities.18
B. Credit for taxes paid by corporations shall be applied to state corporate19
income and corporation franchise taxes. Credit for taxes paid by unincorporated20
persons shall be applied to state personal income taxes. The taxpayer shall be21
entitled to a refund for any allowable credit which exceeds the aggregate tax liability22
of the taxpayer for the taxes imposed by Chapter 1 and Chapter 5 of Subtitle II of23
this Title. The secretary shall make such refund to the taxpayer in the amount to24
which he is entitled from the current collections of the taxes collected pursuant to25
Chapter 1 and Chapter 5 of such Subtitle II.26
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§6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental1
Shelf Lands Act Waters2
A. There shall be allowed a credit against any Louisiana corporation income3
or corporation franchise tax for ad valorem taxes paid without protest to political4
subdivisions on vessels in Outer Continental Shelf Lands Act Waters as certified to5
the assessor pursuant to R.S. 47:1956(B) within the calendar year immediately6
preceding the taxable year of assessment of such vessel. For purposes of this7
Section, ad valorem taxes shall be deemed to be paid to political subdivisions when8
they are paid without protest either in money or by applying credits established9
pursuant to R.S. 47:2108.1.10
B. Notwithstanding anything to the contrary in either Chapter 1 or Chapter11
5 of Subtitle II of this Title, as amended, the following rules shall apply with respect12
to the application of the credit established in Subsection A of this Section:13
(1) The credit for taxes paid by or on behalf of a corporation shall be applied14
against Louisiana corporate income and corporation franchise taxes of such15
corporation. However, any such credit allowable to any member of an affiliated16
group of corporations, as defined in Section 1504 of the Internal Revenue Code of17
1954, as amended, shall be applied against Louisiana corporate income and18
corporation franchise taxes of such member and any other member of such affiliated19
group of corporations until the entire amount of the credit has been applied against20
such Louisiana corporate income taxes or corporation franchise taxes.21
(2) The credit for taxes paid by an individual shall be applied against22
Louisiana personal income taxes.23
(3) (2) The credit for taxes paid by or on behalf of a corporation classified24
under Subchapter S of the Internal Revenue Code of 1954, as amended, as an S25
corporation shall be applied first against any Louisiana corporate income and26
corporation franchise taxes due by such S corporation, and the remainder of any such27
credit shall be allocated to the shareholder or shareholders of such S corporation in28 HLS 13RS-1042 ORIGINAL
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accordance with their respective interests and applied against the Louisiana income1
tax of such shareholder or shareholders of the S corporation.2
(4) (3) The credit for taxes paid by or on behalf of a partnership shall be3
allocated to the partners according to their distributive shares of partnership gross4
income and applied against any Louisiana corporation income tax and corporation5
franchise tax liability of such partners.6
(5) (4) The character of the credit for taxes paid by or on behalf of a7
partnership or S corporation and allocated to the partners or shareholders,8
respectively, of such partnership or S corporation, shall be determined as if such9
credit were incurred by such partners or shareholders, as the case may be in the same10
manner as incurred by the partnership or S corporation, as the case may be.11
(6) (5) The credit for taxes paid by an estate or trust shall be applied against12
the Louisiana income tax imposed on estates and trusts.13
* * *14
§6007. Motion picture investor tax credit15
* * *16
C. Investor tax credit; specific productions and projects.17
(1) There is hereby authorized a tax credit against state corporation income18
tax for Louisiana taxpayers for investment in state-certified productions. The tax19
credit shall be earned by investors at the time expenditures are made by a motion20
picture production company in a state-certified production. However, credits cannot21
be applied against a tax or transferred until the expenditures are certified by the22
office and the secretary. For state-certified productions, expenditures shall be23
certified no more than twice during the duration of a state-certified production unless24
the motion picture production company agrees to reimburse the office for the costs25
of any additional certifications. The tax credit shall be calculated as a percentage of26
the total base investment dollars certified per project.27
* * *28 HLS 13RS-1042 ORIGINAL
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§6008. Tax credits for donations made to assist playgrounds in economically1
depressed areas2
A. There shall be allowed a credit against any Louisiana corporation income3
or corporation franchise tax for qualified donations made to qualified playgrounds.4
The credit shall be an amount equal to the lesser of one thousand dollars or one-half5
of the value of the cash, equipment, goods, or services donated. Any such credit6
shall be taken as a credit against the applicable tax or taxes only in the taxable period7
in which the donation is made. The total amount of the credits taken by any taxpayer8
during any taxable year shall not exceed one thousand dollars.9
* * *10
§6009. Louisiana Basic Skills Training Tax Credit 11
* * *12
D. Tax credits. (1) Any Louisiana business or industry which satisfies the13
criteria provided for herein shall, with submission of proper and complete14
applications, receive a two hundred fifty dollar tax credit per participating employee,15
with the total of all such basic skills training tax credits not to exceed thirty thousand16
dollars for any such single business or industry enterprise in a particular tax year.17
This tax credit may be applied to any state corporation income tax liability or any18
state corporation franchise tax liability and, if the entire credit cannot be used in the19
year earned, the remainder may be applied against income tax or corporation20
franchise tax liabilities for the succeeding two tax years, or until the entire credit is21
used, whichever occurs first.22
* * *23
§6014. Credit for property taxes paid by certain telephone companies; fund24
A. Pursuant to the provisions of this Section, there shall be allowed a credit25
against Louisiana corporation or individual income taxes and Louisiana corporation26
franchise tax for, and in an amount equal to, forty percent of the aggregate ad27
valorem taxes paid to political subdivisions of this state after December 31, 2000, by28
a telephone company, as defined in R.S. 47:1851(Q), with respect to such telephone29 HLS 13RS-1042 ORIGINAL
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company's public service properties, as defined in R.S. 47:1851(M), which are1
assessed by the Louisiana Tax Commission at twenty-five percent of fair market2
value pursuant to R.S. 47:1854.3
B. The credit allowed under this Section shall be applied against any4
Louisiana corporation income or corporation franchise tax shown on a return filed5
by a person as defined in R.S. 47:2, entitled to such credit as determined under6
Subsection C of this Section for corporation income or franchise tax years ending on7
or after December 31, 2001.8
C. Notwithstanding any provision of law to the contrary, the following9
provisions shall apply with respect to the application of the credit established in10
Subsection A of this Section:11
(1) The credit for ad valorem taxes paid by or on behalf of a corporation12
shall be applied against Louisiana corporation income and corporation franchise13
taxes of such corporation. However, any such credit allowable to any member of an14
affiliated group of corporations, as defined in Section 1504 of the Internal Revenue15
Code of 1986, as amended, shall be applied against Louisiana corporation income16
and corporation franchise taxes of such member and any other member of such17
affiliated group of corporations until the entire amount of the credit has been applied18
against such Louisiana corporation income taxes or corporation franchise taxes.19
(2) The credit for taxes paid by an individual shall be applied against the20
Louisiana individual income tax.21
(3) The credit for taxes paid by or on behalf of a corporation classified under22
Subchapter S of the Internal Revenue Code of 1986, as amended, as an S corporation23
shall be applied first against any Louisiana corporation income and corporation24
franchise taxes due by such S corporation, and the remainder of any such credit shall25
be allocated to the shareholder or shareholders of such S corporation in accordance26
with their respective interests and applied against the Louisiana income tax of such27
shareholder or shareholders of the S corporation.28 HLS 13RS-1042 ORIGINAL
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(4) (3) The credit for taxes paid by or on behalf of a partnership shall be1
allocated to the partners according to their distributive shares of partnership gross2
income and applied against any Louisiana corporation income tax and corporation3
franchise tax liability of such partners.4
(5) (4) The credit for taxes paid by or on behalf of a limited liability5
company shall be allocated to the members according to their distributive shares of6
such limited liability company's gross income and applied against any Louisiana7
corporation income tax and corporation franchise tax liability of such members;8
however, the credit for taxes paid by or on behalf of a limited liability company9
treated as a corporation for Louisiana income tax purposes may be applied against10
the Louisiana corporation income taxes of such limited liability company.11
(6) (5) The character of the credit for taxes paid by or on behalf of a12
partnership, S corporation, or limited liability company not treated as a corporation13
for Louisiana income tax purposes and allocated to the partners, shareholders, or14
members, respectively, of such partnership, S corporation, or limited liability15
company, shall be determined as if such credit were incurred by such partners,16
shareholders, or members, in the same manner as incurred by such partnership, S17
corporation, or limited liability company.18
(7) (6) The credit for taxes paid by an estate or trust shall be applied against19
the Louisiana income tax imposed on estates and trusts.20
* * *21
§6015. Research and development tax credit22
* * *23
B.(1) Any taxpayer who employs more than fifty persons and claims for the24
taxable year a federal income tax credit under 26 U.S.C. §41(a) for increasing25
research activities shall be allowed a refundable tax credit to be applied against26
corporation income and corporation franchise taxes due.27
(2) Any taxpayer who employs up to fifty persons and incurs qualified28
research expenses as defined in 26 U.S.C.§41(b), for the taxable year, shall be29 HLS 13RS-1042 ORIGINAL
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allowed a refundable tax credit to be applied against corporation income and1
corporation franchise taxes due.2
* * *3
§6016. New markets tax credit4
* * *5
C. A natural or juridical person who holds a qualified equity investment6
which, in turn, has been invested in a qualified low-income community investment7
on a credit allowance date of such investment which occurs during the taxable year8
may claim a credit against the person's Louisiana corporation income or corporation9
franchise tax for such taxable year equal to the applicable percentage of the adjusted10
purchase price paid to the issuer of such qualified equity investment for such11
investment which, in turn, has been invested in qualified low-income community12
investments for such credit allowance date.13
D. The total of all such credits taken by any person under this Section shall14
not exceed such person's total combined corporation income and corporation15
franchise tax liability for that taxable year. Any credits that are not used in the first16
taxable year eligible for use shall carry forward and be eligible for use in future17
taxable years for a period not to exceed ten years.18
E.19
* * *20
(4)(a) All entities taxed as corporations for Louisiana income tax and21
franchise tax purposes shall claim any credit allowed under this Section on their22
corporation income and franchise tax return.23
(b) Individuals, estates, Estates and trusts shall claim any credit allowed24
under this Section on their income tax return.25
(c) Entities not taxed as corporations shall claim any credit allowed under26
this Section on the returns of the partners or members as follows:27
(i) Corporate partners or members shall claim their share of the credit on28
their corporation income tax or franchise tax returns.29 HLS 13RS-1042 ORIGINAL
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(ii) Individual partners or members shall claim their share of the credit on1
their individual income tax or franchise tax returns.2
(iii) Partners or members that are estates or trusts shall claim their share of3
the credit on their fiduciary income tax returns.4
* * *5
F.(1) Any tax credits not previously claimed by any taxpayer against its6
corporation income or franchise tax may be transferred or sold to another Louisiana7
taxpayer, subject to the following conditions:8
* * *9
§6017. Tax credits for certain expenses paid by economic development corporations10
A. There shall be allowed a credit against any Louisiana corporation income11
or corporation franchise taxes for the filing fee paid to the Louisiana State Bond12
Commission that is incurred by an economic development corporation in the13
preparation and issuance of bonds, as provided for in Chapter 27 of Title 33 of the14
Louisiana Revised Statutes of 1950. The credit shall be an amount equal to the15
amount of the filing fee paid to the Louisiana State Bond Commission that is16
incurred by the corporation in the preparation and issuance of the bonds.17
* * *18
§6018. Tax credits for purchasers from "PIE contractors"19
* * *20
B. There shall be allowed a credit in each tax year beginning on and after21
January 1, 2007, against the Louisiana corporation income tax and the Louisiana22
corporate franchise tax for any individual or business which purchases specialty23
apparel items, including but not limited to industrial clothes, uniforms, and scrubs,24
from a contractor in a certified Private Sector/Prison Industry Enhancement Program25
which employs inmates of Louisiana correctional institutions to manufacture such26
apparel.27
* * *28 HLS 13RS-1042 ORIGINAL
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D. Notwithstanding anything to the contrary in either Chapter 1 or Chapter1
5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, as amended,2
the following rules shall apply with respect to the application of the credit provided3
for in this Section:4
(1) All entities taxed as corporations for Louisiana income tax purposes shall5
claim any credit allowed under this Section on their corporation income tax return.6
(2) Individuals shall claim any credit allowed under this Section on their7
individual income tax return.8
(3) Entities not taxed as corporations shall claim any credit allowed under9
this Section on the returns of the partners or members as follows:10
(a) Corporate partners or members shall claim their share of the credit on11
their corporation income tax returns.12
(b) Individual partners or members shall claim their share of the credit on13
their individual income tax returns.14
(c) Partners or members that are estates or trusts shall claim their share of the15
credit on their fiduciary income tax returns.16
* * *17
§6019. Tax credit; rehabilitation of historic structures18
A.(1)(a) There shall be a credit against corporation income and corporation19
franchise tax for the amount of eligible costs and expenses incurred during the20
rehabilitation of a historic structure located in a downtown development or a cultural21
product district. The credit shall not exceed twenty-five percent of the eligible costs22
and expenses of the rehabilitation. No taxpayer, or any entity affiliated with such23
taxpayer, shall receive more than five million dollars of credit for any number of24
structures rehabilitated within a particular downtown development or cultural25
product district.26
* * *27
(3)(a) The credit shall be allowed against the corporation income tax for the28
taxable period in which the credit is earned and against the franchise tax for the29 HLS 13RS-1042 ORIGINAL
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taxable period following the taxable period in which the credit is earned. If the tax1
credit allowed pursuant to this Section exceeds the amount of such taxes due, any2
unused credit may be carried forward as a credit against subsequent tax liability for3
a period not to exceed five years. This credit may be used in addition to the twenty4
percent federal tax credit for such purposes.5
(b)(i)(aa) Persons who are awarded tax credits may elect to sell their unused6
tax credits to one or more individuals or entities. The tax credits may be transferred7
or sold by a taxpayer or any subsequent transferee an unlimited number of times.8
(bb) The transfer of the credit does not extend the carry forward period of9
the credit.10
(cc) Transferors and transferees shall submit to the state historic preservation11
office and to the Department of Revenue in writing a notification of any transfer or12
sale of tax credits within thirty days after the transfer or sale of such tax credits. The13
notification shall include the transferor's tax credit balance prior to transfer, the14
credit identification number assigned by the state historic preservation office, the15
remaining balance after transfer, all federal and Louisiana tax identification numbers16
for both transferor and transferee, the date of transfer, the amount transferred, and17
any other information required by the state historic preservation office or the18
Department of Revenue. Failure to comply with this notification provision will19
result in the disallowance of the tax credit until the parties are in full compliance.20
(ii)(aa) All entities taxed as corporations for Louisiana income or corporation21
franchise tax purposes shall claim any credit allowed under this Section on their22
corporation income and corporation franchise tax return.23
(bb) Individuals shall claim any credit allowed under this Section on their24
individual income tax return.25
(cc) Estates or trusts shall claim any credit allowed under this Section on26
their fiduciary income tax returns.27
(dd) (cc) Entities not taxed as corporations shall claim any credit allowed28
under this Section on the returns of the partners or members as follows:29 HLS 13RS-1042 ORIGINAL
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(I) Corporate partners or members shall claim their share of the credit on1
their corporation income or corporation franchise tax returns.2
(II) Individual partners or members shall claim their share of the credit on3
their individual income tax returns.4
(III) Partners or members that are estates or trusts shall claim their share of5
the credit on their fiduciary income tax returns.6
* * *7
(ii)(aa) All entities taxed as corporations for Louisiana income or corporation8
franchise tax purposes shall claim any credit allowed under this Section on their9
corporation income and corporation franchise tax return.10
(bb) Individuals shall claim any credit allowed under this Section on their11
individual income tax return.12
(cc) Estates or trusts shall claim any credit allowed under this Section on13
their fiduciary income tax returns.14
(dd) Entities not taxed as corporations shall claim any credit allowed under15
this Section on the returns of the partners or members as follows:16
(I) Corporate partners or members shall claim their share of the credit on17
their corporation income or corporation franchise tax returns.18
(II) Individual partners or members shall claim their share of the credit on19
their individual income tax returns.20
(III) Partners or members that are estates or trusts shall claim their share of21
the credit on their fiduciary income tax returns.22
B.(1) Definitions. For purposes of this Section, the following words and23
phrases shall have the meanings ascribed to them in this Subsection:24
(a) "Cultural product district" shall mean a district designated by a local25
governing authority in accordance with law for the purpose of revitalizing a26
community by creating a hub of cultural activity, including affordable artist housing27
and workspace. The Department of Culture, Recreation and Tourism shall develop28
standard criteria for cultural product districts. Such criteria shall include that the29 HLS 13RS-1042 ORIGINAL
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district must be geographically contiguous and distinguished by cultural resources1
that play a vital role in the life and cultural development of a community. The2
district shall focus on a cultural compound, a major art institution, art and3
entertainment businesses, an area with arts and cultural activities or cultural or4
artisan production and be engaged in the promotion, preservation, and educational5
aspects of the arts and culture of the locale and contribute to the public through6
interpretive and educational uses. The Department of Culture, Recreation and7
Tourism may determine whether or not a district complies with this definition.8
(b) "Downtown development district" shall mean a downtown development9
district or central business development district created by law, pursuant to law, or10
by ordinance adopted prior to January 1, 2002, in a home rule charter municipality.11
(c) "Eligible costs and expenses" shall mean qualified rehabilitation12
expenditures as defined in Section 47c(2)(A) of the Internal Revenue Code of 1986,13
as amended, except that "substantially rehabilitated" shall mean that the qualified14
rehabilitation expenditures must exceed ten thousand dollars.15
(2) Federal law terms. Except as otherwise provided or clearly appearing16
from the context, any term used in this Section shall have the same meaning as when17
used in a comparable context in federal law.18
C. The provisions of this Section shall be effective for the taxable years19
ending prior to January 1, 2016.20
§6020. Angel Investor Tax Credit Program21
* * *22
D. Tax Credits. 23
* * *24
(2)(a) An investor may apply for and, if qualified, be granted a credit on any25
corporation income or corporation franchise tax liability owed to the state by the26
taxpayer seeking to claim the credit in the amount approved by the secretary of the27
department. The amount of the tax credit shall be based upon the amount of money28
invested by the investor in the Louisiana Entrepreneurial Business, which investment29 HLS 13RS-1042 ORIGINAL
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shall not exceed one million dollars per year per business and two million dollars1
total per business. Except as otherwise provided in Subparagraph (b) of this2
Paragraph, the credit shall be allowed against the corporation income tax for the3
taxable period in which the credit is earned and the franchise tax for the taxable4
period following the period in which the credit is earned. The credits approved by5
the department shall be granted at the rate of thirty-five percent of the amount of the6
investment with the credit divided in equal portions for five years.7
(b) After certifying the eligibility of the Louisiana Entrepreneurial Business8
and the amount of the investment, the secretary of the department shall issue a tax9
credit certificate, a copy of which is to be attached to the tax return of the angel10
investor. The tax credit available in the first year shall become deductible from tax11
liability in the taxpayer's corporation income tax year which occurs twenty-four12
months from the date the department certifies the amount of the investment.13
* * *14
(3)(a) All entities taxed as corporations for Louisiana income or corporation15
franchise tax purposes shall claim any credit allowed under this Section on their16
corporation income and corporation franchise tax return.17
(b) Individuals shall claim any credit allowed under this Section on their18
individual income tax return.19
(c) Estates or trusts shall claim any credit allowed under this Section on their20
fiduciary income tax returns.21
(d) (c) Entities not taxed as corporations shall claim any credit allowed under22
this Section on the returns of the partners or members as follows:23
(i) Corporate partners or members shall claim their share of the credit on24
their corporation income or corporation franchise tax returns.25
(ii) Individual partners or members shall claim their share of the credit on26
their individual income tax returns.27 HLS 13RS-1042 ORIGINAL
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(iii) Partners or members that are estates or trusts shall claim their share of1
the credit on their fiduciary income tax returns.2
* * *3
§6022. Digital interactive media and software tax credit4
* * *5
E. Use of tax credits6
* * *7
(2) For tax credits earned for expenditures made on or after January 1, 2012:8
(a) The tax credits shall be refundable and allowed against the individual or9
corporate income tax liability of the companies or financiers of the project in10
accordance with their share of the credit as provided for in the application for11
certification for the project. The credit shall be allowed for the taxable period in12
which expenditures eligible for a credit are expended as set forth in the final tax13
credit certification letter. Any excess of the credit over the income tax liability14
against which the credit may be applied shall constitute an overpayment, as defined15
in R.S. 47:1621(A), and the secretary of the Department of Revenue shall make a16
refund of such overpayment from the current collections of the taxes imposed by17
Chapter 1 of Subtitle II of this Title, as amended. The right to a refund of any such18
overpayment shall not be subject to the requirements of R.S. 47:1621(B).19
* * *20
§6023. Sound recording investor tax credit21
C. Investor tax credit; state-certified productions and infrastructure projects.22
(1) Until January 1, 2015, there is hereby authorized a credit against the state23
corporation income tax for investments made in state-certified productions and state-24
certified sound recording infrastructure projects. The tax credit shall be earned by25
investors at the time expenditures are certified by the Louisiana Department of26
Economic Development according to the total base investment certified for the sound27
recording production company per calendar year; however, no credit shall be allowed28 HLS 13RS-1042 ORIGINAL
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under this Section for any expenditures for which a credit was granted under R.S.1
47:6007. For state-certified productions certified on and after July 1, 2007, and state-2
certified infrastructure projects which have applied on or before August 1, 2009,3
each investor shall be allowed a tax credit of twenty-five percent of the base4
investment made by that investor in excess of fifteen thousand dollars.5
* * *6
§6025. Tax credit for Louisiana Citizens Property Insurance Corporation assessment7
A.(1) There shall be allowed a credit against Louisiana corporation income8
tax due in a taxable year for the amount of surcharges, market equalization charges,9
or assessments paid by a taxpayer during the taxable year as a result of the 200510
regular assessment or the emergency assessments levied due to Hurricanes Katrina11
and Rita by Louisiana Citizens Property Insurance Corporation for the FAIR Plan12
and Coastal Plan, as they are defined in R.S. 22:2292.13
* * *14
§6030. Wind or solar energy systems tax credit15
A. There shall be a credit against the corporation income tax for the cost of16
purchase and installation of a wind energy system or solar energy system, or both,17
by a taxpayer at his residence located in this state, by the owner of a residential rental18
apartment project, or by a taxpayer who purchases and installs such a system in a19
residence or a residential rental apartment project which is located in Louisiana. The20
credit may be claimed in cases where the resident individual purchases a newly21
constructed home with such a system already installed or where such a system is22
purchased and installed at an existing home, or where such systems are taxpayer23
purchases a system that is installed in new or existing apartment projects. Only one24
such tax credit shall be available for any eligible system. Once a tax credit25
authorized pursuant to this Section is claimed by a taxpayer for a particular system,26
that same system shall not be eligible for any other tax credit pursuant to this27 HLS 13RS-1042 ORIGINAL
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Section. If the residential property or system is sold, the taxpayer who claimed the1
tax credit shall disclose his use of the tax credit to the purchaser.2
* * *3
E. Credits may be claimed in accordance with the following:4
(1) Any entity taxed as a corporation for Louisiana income tax and franchise5
tax purposes shall claim any credit authorized according to the provisions of this6
Section on its corporation income and franchise tax return.7
(2) Any individual, estate, or trust shall claim any credit authorized8
according to the provisions of this Section on its income tax return.9
(3) Any entity not taxed as a corporation shall claim any credit authorized10
according to the provisions of this Section on the returns of the partners or members11
as follows:12
(a) Corporate partners or members shall claim their share of the credit on13
their corporation income tax or franchise tax returns.14
(b) Individual partners or members shall claim their share of the credit on15
their individual income tax or franchise tax returns.16
(c) Partners or members that are estates or trusts shall claim their share of the17
credit on their fiduciary income tax returns.18
* * *19
§6032. Tax credit for certain milk producers20
A. A resident taxpayer engaged in the business of producing milk for sale21
shall be allowed a refundable tax credit based on the amount of milk produced and22
sold. The credit may be claimed against any Louisiana corporation income tax and23
the corporation franchise tax. The credit shall be allowed when the USDA Uniform24
Price in Federal Order Number 7 drops below the announced production price any25
time during the calendar year.26
* * *27 HLS 13RS-1042 ORIGINAL
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§6033. Apprenticeship tax credits1
* * *2
B.(1) For all taxable periods beginning after December 31, 2007, and ending3
prior to January 1, 2015, employers shall be allowed a non-refundable nonrefundable4
apprenticeship tax credit against any Louisiana individual or corporation income tax5
or corporation franchise tax each tax year equal to one dollar for each hour of6
employment of each eligible apprentice, not to exceed one thousand hours for each7
eligible apprentice, all as provided for in this Section.8
* * *9
C. The credits provided for in this Section shall be allowed against10
corporation income tax or corporate franchise tax for the taxable period in which the11
credit is earned. If the tax credit exceeds the amount of such taxes due, then any12
unused credit may be carried forward as a credit against subsequent tax liability for13
a period not to exceed ten years.14
D. Notwithstanding anything to the contrary in either Chapter 1 or Chapter15
5 of Subtitle II of this Title 47, as amended, the following rules shall apply with16
respect to the application of the credit established in Subsection B of this Section:17
(1) The credit for taxes paid by or on behalf of a corporation shall be applied18
against Louisiana corporate income and corporation franchise taxes of such19
corporation.20
(2) The credit for taxes paid by an individual shall be applied against21
Louisiana personal income taxes.22
(3) The credit for taxes paid by or on behalf of a corporation classified under23
Subchapter S of the Internal Revenue Code of 1954, as amended, as an S corporation24
shall be applied first against any Louisiana corporate income and corporation25
franchise taxes due by such S corporation, and the remainder of any such credit shall26
be allocated to the shareholder or shareholders of such S corporation in accordance27 HLS 13RS-1042 ORIGINAL
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with their respective interests and applied against the Louisiana income tax of such1
shareholder or shareholders of the S corporation.2
(4) (3) The credit for taxes paid by or on behalf of a partnership shall be3
allocated to the partners according to their distributive shares of partnership gross4
income and applied against any Louisiana corporation income tax and corporation5
franchise tax liability of such partners.6
(5) (4) The character of the credit for taxes paid by or on behalf of a7
partnership or S corporation and allocated to the partners or shareholders,8
respectively, of such partnership or S corporation, shall be determined as if such9
credit were incurred by such partners or shareholders, as the case may be in the same10
manner as incurred by the partnership or S corporation, as the case may be.11
(6) (5) The credit for taxes paid by an estate or trust shall be applied against12
the Louisiana income tax imposed on estates and trusts.13
* * *14
§6034. Musical and theatrical production income tax credit15
* * *16
D.(1) The credit shall be allowed against individual or corporate income tax17
of the companies or financiers of the production or infrastructure project in18
accordance with their share of the credit as provided for in the application for19
certification for the production or infrastructure project. A company or financier20
may on a one-time basis, transfer the credit, and/or any refund of an overpayment,21
to an individual or other entity including without limitation a bank or other lender,22
provided that the transfer shall not be effective until receipt by the Department of23
Revenue of written notice of such transfer. The credit shall be allowed for the24
taxable period in which expenditures eligible for a credit are expended. Any excess25
of the credit over the income tax liability against which the credit may be applied26
shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary of27
the Department of Revenue shall make a refund of such overpayment from the28 HLS 13RS-1042 ORIGINAL
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current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as1
amended. The right to a refund of any such overpayment shall not be subject to the2
requirements of R.S. 47:1621(B).3
(2) Application of the credit.4
(a) Individuals, estates, Estates and trusts shall claim their share of any credit5
on their income tax return.6
(b) Entities not taxed as corporations shall claim their share of any credit on7
the returns of the partners or members.8
(c) Corporate partners or members shall claim their share of any credit on9
their corporation income tax returns.10
(d) Individual partners or members shall claim their share of any credit on11
their individual income tax returns.12
(e) Partners or members that are estates or trusts shall claim their share of13
any credit on their fiduciary income tax returns.14
* * *15
§6035. Tax credit for conversion of vehicles to alternative fuel usage16
* * *17
C. The credit provided for in Subsection A of this Section shall be allowed18
against individual or corporate income tax for the taxable period in which the19
property is purchased and installed, if applicable, and shall be equal to fifty percent20
of the cost of the qualified clean-burning motor vehicle fuel property.21
* * *22
F. A husband and wife who file separate returns for a taxable year in which23
they could have filed a joint return may each claim only one-half of the tax credit24
that would have been allowed for a joint return.25
G. The secretary of the Department of Revenue in consultation with the26
secretary of the Department of Natural Resources shall promulgate rules and27 HLS 13RS-1042 ORIGINAL
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regulations in accordance with the Administrative Procedure Act as are necessary to1
implement the provisions of this Section.2
§6036. Ports of Louisiana tax credits3
* * *4
C. Investor tax credit.5
(1)(a) There are hereby authorized the following credits against state6
corporation income and corporate franchise tax:7
* * *8
(4) Application of the credit.9
(a) All entities taxed as corporations for Louisiana income tax purposes shall10
claim any credit allowed under this Subsection on their corporation income tax11
return.12
(b) Individuals, estates, Estates and trusts shall claim any credit allowed13
under this Subsection on their income tax return.14
(c) Entities not taxed as corporations shall claim any credit allowed under15
this Subsection on the returns of the partners or members as follows:16
(i) Corporate partners or members shall claim their share of the credit on17
their corporation income tax returns.18
(ii) Individual partners or members shall claim their share of the credit on19
their individual income tax returns.20
(iii) Partners or members that are estates or trusts shall claim their share of21
the credit on their fiduciary income tax returns.22
* * *23
I. Import Export Cargo Credit.24
* * *25
(2)(a)(i) For taxable years beginning on and after January 1, 2009, there shall26
be allowed a credit against the individual income, corporation income, and27
corporation franchise tax liability of a taxpayer who has received certification28 HLS 13RS-1042 ORIGINAL
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pursuant to the provisions of Paragraph (1) of this Subsection. The amount of the1
credit shall be equal to the product of multiplying five dollars by the taxpayer's2
number of tons of qualified cargo for the taxable year but only for the total amount3
of the allocation provided to the taxpayer by the secretary of the Department of4
Economic Development for such taxable year.5
* * *6
§6037. Tax credit for "green job industries"7
* * *8
B. Income Corporation income tax credits for state-certified green projects:9
* * *10
C.(1) The credit shall be allowed against individual or corporate income tax11
of the companies or financiers of the project in accordance with their share of the12
credit as provided for in the application for certification for the project. A company13
or financier may on a one-time basis, transfer the credit, or any refund of an14
overpayment, to an individual or other entity including without limitation a bank or15
other lender, provided that the transfer shall not be effective until receipt by the16
Department of Revenue of written notice of such transfer. The credit shall be17
allowed for the taxable period in which expenditures eligible for a credit are18
expended. Any excess of the credit over the income tax liability against which the19
credit may be applied shall constitute an overpayment, as defined in R.S.20
47:1621(A), and the secretary shall make a refund of such overpayment from the21
current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as22
amended. The right to a refund of any such overpayment shall not be subject to the23
requirements of R.S. 47:1621(B).24
(2) Application of the credit.25
(a) Individuals, estates, and trusts shall claim their share of any credit on26
their income tax return.27 HLS 13RS-1042 ORIGINAL
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(b) Entities not taxed as corporations shall claim their share of any credit on1
the returns of the partners or members.2
(c) (b) Corporate partners or members shall claim their share of any credit3
on their corporation income tax returns.4
(d) Individual partners or members shall claim their share of any credit on5
their individual income tax returns.6
(e) (c) Partners or members that are estates or trusts shall claim their share7
of any credit on their fiduciary income tax returns.8
* * *9
§6105. Child care provider tax credit10
There shall be a credit against any Louisiana individual or corporation11
income tax or corporation franchise tax for a child care provider refundable as12
provided for in R.S. 47:6108. The tax credit shall be an amount based upon the13
average monthly number of children who either participate in the Child Care14
Assistance Program administered by the office of children and family services in the15
Department of Children and Family Services or who are foster children in the16
custody of the Department of Children and Family Services, and who are attending17
a child care facility or facilities operated by the child care provider, multiplied by an18
amount which shall be based upon the quality rating of each child care facility19
operated by the child care provider as follows:20
Quality Rating of Child Care Tax Credit Per21
Facility Eligible Child Attending22
Five star $1,50023
Four star $1,25024
Three star $1,00025
Two star $75026
One star or nonparticipating facility 027
* * *28 HLS 13RS-1042 ORIGINAL
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§6107. Business-supported child care1
A.(1) There shall be a refundable credit against any Louisiana individual or2
corporation income tax or corporation franchise tax for the eligible business child3
care expenses supported by a business. The credit shall be the following percentages4
of such eligible business child care expenses depending upon the quality rating of the5
child care facility to which the expenses are related or the quality rating of the child6
care facility the child attends:7
Quality Rating of Child Care Facility Percentage of eligible business8
child care expenses9
Five star 20%10
Four star 15%11
Three star 10%12
Two star 5%13
One star or nonparticipating facility 014
(2) There shall be an additional refundable credit against any Louisiana15
individual or corporation income tax or corporation franchise tax for the payment by16
a business of fees and grants to child care resource and referral agencies not to17
exceed five thousand dollars per tax year.18
B. The credits provided for in this Section shall be allowed against19
corporation income tax or corporate franchise tax for the taxable period in which the20
credit is earned. If the tax credit exceeds the amount of such taxes due, then the21
unused credit shall be refunded as provided for in R.S. 47:6108.22
§6108. Refundable tax credits23
* * *24
B. Notwithstanding anything to the contrary in either Chapter 1 or Chapter25
5 of Subtitle II of this Title, as amended, the following rules shall apply with respect26
to the application of the credit established in Subsection A of this Section:27 HLS 13RS-1042 ORIGINAL
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(1) The credit for taxes paid by or on behalf of a corporation shall be applied1
against Louisiana corporate income and corporation franchise taxes of such2
corporation.3
(2) The credit for taxes paid by an individual shall be applied against4
Louisiana personal income taxes.5
(3) The credit for taxes paid by or on behalf of a corporation classified under6
Subchapter S of the Internal Revenue Code of 1954, as amended, as an S corporation7
shall be applied first against any Louisiana corporate income and corporation8
franchise taxes due by such S corporation, and the remainder of any such credit shall9
be allocated to the shareholder or shareholders of such S corporation in accordance10
with their respective interests and applied against the Louisiana income tax of such11
shareholder or shareholders of the S corporation.12
(4) (3) The credit for taxes paid by or on behalf of a partnership shall be13
allocated to the partners according to their distributive shares of partnership gross14
income and applied against any Louisiana income tax and corporation franchise tax15
liability of such partners.16
(5) (4) The character of the credit for taxes paid by or on behalf of a17
partnership or S corporation and allocated to the partners or shareholders,18
respectively, of such partnership or S corporation, shall be determined as if such19
credit were incurred by such partners or shareholders, as the case may be in the same20
manner as incurred by the partnership or S corporation, as the case may be.21
(6) (5) The credit for taxes paid by an estate or trust shall be applied against22
the Louisiana income tax imposed on estates and trusts.23
Section 2. R.S. 47:33, 43, 44, 45 through 51, 53 through 54, 56 through 59, 60, 60.1,24
65, 68, 79, 294, 297(B) through (D) and (F) through (P), 297.1 through 297.12, 6104, and25
6106 are hereby repealed in their entirety.26
Section 3. This Act shall become effective on January 1, 2014. 27 HLS 13RS-1042 ORIGINAL
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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)]
Richard HB No. 689
Abstract: Reduces the tax levied on the net income of individuals and repeals certain
income tax deductions, exemptions, and credits.
Present law provides for a tax to be assessed, levied, collected, and paid upon the taxable
income of an individual to be computed as follows:
(1)2% on that portion of the first $12,500 of net income;
(2)4% on the next $37,500 of net income;
(3)6% on any amount of net income in excess of $50,000.
Proposed law reduces the present law rates of the tax on the net income of individuals as
follows:
(1)1.25% on the first $12,500 of net income.
(2)2.5% on the next $37,500 of net income.
(3)3.75% on any amount of net income in excess of $50,000.
Present law provides that in the case of joint returns, the combined tax of present law shall
be doubled.
Proposed law retains present law.
Present law provides for an income tax credit as an incentive for an individual to donate or
sell below cost, tangible movable property to public educational institutions for purposes of
research, research training, or the direct education of students.
Proposed law retains present law but deletes applicability of the credit to individual income
tax.
Present law provides for an income tax deduction for construction code retrofitting, excess
federal itemized personal deductions, and recreation volunteer and volunteer firefighter
deductions.
Proposed law repeals present law.
Present law provides that purposes of computing the individual income tax, the term "tax
table income" for resident individuals, shall mean adjusted gross income plus interest on
certain obligations of a state or political subdivision, less items such as gratuitous loans,
federal income tax liability, excess personal exemptions, amounts deposited into medical
savings accounts, amounts deposited into educational savings accounts, certain exclusions
for S Bank shareholders, certain expenses disallowed by federal law in computing net HLS 13RS-1042 ORIGINAL
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income, the temporary teacher deduction, excess federal itemized deductions, elementary
and secondary school tuition deductions, certain education expenses for home-schooled
children, deduction of fees and other educational expenses for a quality public education,
income from net capital gains, interest on certain obligations, certain income distributed
from trusts, and certain income for individuals on active duty as a member of the armed
forces of the U.S.
Proposed law repeals present law.
Present law provides for an income and corporation franchise tax credit for the employment
of each person and participant of Family Independence Work Program in a newly created
full-time job. The amount of the credit shall be $750 and shall be allowed for the taxable
period during which the new employee has completed one year of full-time service with the
taxpayer or against the corporation franchise tax for the taxable period following the taxable
period during which the new employee has completed one year of full-time service with the
taxpayer.
Present law provides for an income or corporation franchise tax credit for ad valorem taxes
paid to political subdivisions on inventory held by manufacturers, distributors, and retailers
and on natural gas held, used, or consumed in providing natural gas storage services or
operating natural gas storage facilities. The amount of the credit shall be equal to 100% of
the inventory taxes paid to the political subdivision.
Present law provides for an income or corporation franchise tax credit for ad valorem taxes
paid without protest to political subdivisions on vessels in Outer Continental Shelf Lands
Act Waters as certified to the assessor within the calendar year immediately preceding the
taxable year of assessment of such vessel. The amount of the credit shall be equal to 100%
of the ad valorem taxes paid to the political subdivision.
Present law provides for an income tax credit for La. taxpaye rs for investment in state-
certified productions earned at the time expenditures are made by a motion picture
production company in a state-certified production.The amount of the credit shall be equal
to 30% of the base investment made by the investor if the total base investment is more than
$300,000. Additionally provides for a credit equal to 5% of base investment expended on
payroll for La. residents employed in connection with a state-certified production.
However, this credit does not apply to the payroll of any one person that exceeds $1 million.
Present law provides for an income or corporation franchise tax credit for qualified
donations made to qualified playgrounds. The amount of the credit shall be equal to the
lesser of $1,000 or one-half of the value of the cash, equipment, goods, or services donated.
Present law provides for an income or corporation franchise tax credit for a La. business or
industry which supports and encourages employee basic skills training by satisfying criteria
established in present law and which submit proper and complete applications. The amount
of the credit shall equal $250 per participating employee, with the total of all basic skills
training credits not to exceed $30,000 for any single business or industry enterprise in a
particular tax year.
Present law provides for an income and corporation franchise tax credit for ad valorem taxes
paid to political subdivisions by a telephone company for the company's public service
properties. The amount of the credit shall be equal to 40% of the aggregate ad valorem taxes
paid by the telephone company to the political subdivision.
Present law provides for a refundable income and corporation franchise tax credit to
encourage new and continuing efforts to conduct research and development activities within HLS 13RS-1042 ORIGINAL
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are additions.
this state. The amount of the credit varies depending on the number of persons and claims
for the taxable year an income tax credit is authorized under current federal law. Present
law further prohibits credits for research expenditures incurred or Small Business Innovation
Research Grant funds received after Dec. 31, 2019.
Present law provides for an income or corporation franchise tax credit for the filing fee paid
to the La. State Bond Commission incurred by an economic development corporation in the
preparation and issuance of bonds. The amount of the credit shall be equal to the amount
of the filing fee paid.
Present law provides for an income or corporation franchise tax credit for certain
investments in qualified low-income communities. The amount of the credit varies
depending on the amount of the investment.
Present law provides for an income and corporate franchise tax credit for purchases of
specialty apparel items including industrial clothes, uniforms, and scrubs, from a contractor
in a certified Private Sector/Prison Industry Enhancement Program which employs inmates
to manufacture such apparel. The amount of the credit shall be equal to the state sales and
use tax paid by the purchaser on each case or other unit of apparel as reflected on the
purchaser's books and records.
Present law provides for an income and corporation franchise tax credit for the expenses
incurred during the rehabilitation of a historic structure located in a downtown development
or a cultural product district. The amount of the credit shall not exceed 25% of the eligible
costs and expenses of the rehabilitation. Present law prohibits a taxpayer, or an entity
affiliated with a taxpayer, from receiving more than $5 million of credit for any number of
rehabilitated structures within a particular downtown development or cultural product
district. Present law provides that the tax credit shall be effective for the taxable years
ending prior to Jan. 1, 2016.
Present law provides for an income or corporation franchise tax credit for the purpose of
encouraging investment in early stage wealth-creating businesses and to enlarge the number
of quality jobs available to retain young people educated in this state. The amount of the
credit varies based on the amount of money invested in La. Entrepreneurial Businesses.
Present law provides for an income or corporation franchise tax credit for applications for
state-certified digital interactive media productions submitted to the office of entertainment
industry development in the Dept. of Economic Development. The amount of the credit
shall be equal to 25% of the base investment in the state-certified digital interactive media
production. Present law provides for an additional tax credit of 10% of payroll to the extent
that the investment is expended on payroll for La. residents employed in connection with a
state-certified production.
Present law provides for an income tax credit for investments made in state-certified
productions and state-certified sound recording infrastructure projects until Jan. 1, 2015.
The amount of the credit is equal to 25% of the base investment in excess of $15,000 for
productions certified on or after July 1, 2007, and for infrastructure projects which have
applied for the credit on or before Aug. 1, 2009.
Present law provides for an income tax credit for the surcharges, market equalization
charges, or assessments paid by a taxpayer as a result of the 2005 regular assessment or the
emergency assessments levied due to Hurricanes Katrina and Rita by La. Citizens Property
Insurance Corporation for the FAIR Plan and Coastal Plan. The amount of the credit is
equal to the surcharges, market equalization charges, or assessments paid by a taxpayer. HLS 13RS-1042 ORIGINAL
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are additions.
Present law provides for an income tax credit for the cost of purchase and installation of a
wind or solar energy system, or both, by a taxpayer at his La. residence, by the owner of a
residential rental apartment project, or by a taxpayer who purchases and installs a system in
a residence or a residential rental apartment project located in La. Present law limits one
credit per system. The amount of the credit shall be equal to 50% of the first $25,000 of the
cost of each wind energy system or solar energy system, including installation costs,
purchased and installed on or after Jan. 1, 2008.
Present law provides for a refundable income and corporation franchise tax credit for a
resident taxpayer engaged in the business of producing milk for sale. The amount of the
credit shall be based on the production and sale of milk below the announced production
price over a calendar year in accordance with a schedule provided in present law. Present
law limits the credit allowed for each producer to no more than $30,000 per calendar year
and caps the total aggregate amount of credits for all producers at $2.5 million per calendar
year.
Present law provides for a refundable income and corporation franchise tax credit for
purposes of promoting job training in the workforce and producing a quality workforce. The
amount of the credit is equal to $1 for each hour of employment of each eligible apprentice,
not to exceed 1,000 hours for each eligible apprentice.
Present law provides for an income tax credit for state-certified musical or theatrical facility
infrastructure projects. The amount of the credit shall vary depending on the amount of the
investment in such projects; however, the total amount of credits per project shall not exceed
$10 million and the total amount of credits per year shall not exceed $60 million.
Present law provides for an income tax credit for qualified clean-burning motor vehicle fuel
property purchased and installed on certain motor vehicles. The amount of the credit shall
be equal to 50% of the cost of the qualified clean-burning motor vehicle fuel property.
Present law provides for an income and corporate franchise tax credit for the total capital
costs of a project sponsored or undertaken by a public port and investing companies that
have a capital cost of at least $5 million and at which the predominant trade or business
activity conducted will constitute industrial, warehousing, or port and harbor operations and
cargo handling, including any port or port and harbor activity. The amount of the credit shall
be equal to the total amount of capital costs of the project which shall be taken at 5% per tax
year.
Present law provides for an income and corporation franchise Import Export tax credit for
any breakbulk or containerized cargo brought to the state from a foreign country or from the
state to a foreign country. The amount of the credit shall be equal to the product of
multiplying $5 by the number of tons of qualified cargo for the taxable year but only for the
total amount provided by the secretary of the Dept. of Economic Development.
Present law provides for an income tax credit for certain expenditures for the construction,
repair, or renovation of a state-certified green project. The amount of the credit is based on
the amount of the investment.
Present law provides for a refundable income or corporation franchise tax credit for child
care providers. The amount of the credit shall be equal to an amount based upon the average
monthly number of children who either participate in the Child Care Assistance Program or
who are foster children in the custody of the Dept. of Children and Family Services, and who
are attending a child care facility or facilities operated by the child care provider, multiplied
by an amount which shall be based upon the quality rating of each child care facility
operated by the child care. HLS 13RS-1042 ORIGINAL
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Present law provides for a refundable income tax or corporation franchise tax credit for
eligible business child care expenses supported by a business. The amount of the credit shall
be based on a percentage of eligible business child care expenses depending upon the quality
rating of the child care facility to which the expenses are related or the quality rating of the
child care facility the child attends. Present law provides for an additional refundable
income or corporation franchise tax for the payment by a business of fees and grants to child
care resource and referral agencies not to exceed $5,000 per tax year.
Present law provides for an income and corporation franchise tax credit for investments
which encourage the development, growth, and expansion of the private sector within the
state by increasing access to capital in disadvantaged areas of the state. The amount of the
credit is dependent on the amount of the private sector investment made by the taxpayer.
Further provides that tax credits shall be allowed for qualified equity investments which
have been invested in qualified low-income community investments until Dec. 31, 2013.
Proposed law retains present law but deletes applicability of such credits against individual
income tax.
Present law provides for an individual income tax credit for child care expenses based on the
quality rating of the child care facility which the child attends. The amount of the credit
varies depending on the quality rating of the child care facility.
Proposed law repeals present law.
Present law provides for a refundable individual income tax credit for eligible child care
directors and eligible child care staff. The amount of the credit varies based upon the
qualifications of the provider.
Proposed law repeals present law.
Effective Jan. 1, 2014.
(Amends R.S. 47:32(A), 37(A), (B)(5), (C), (D)(2), and (E), 293, 6004(A)(2)(intro. para.),
6005(C)(1), 6006(A) and (B), 6006.1(A) and (B), 6007(C)(1), 6008(A), 6009(D)(1),
6014(A), (B), and (C), 6015(B)(1) and (2), 6016(C), (D), (E)(4), and (F)(1)(intro. para.),
6017(A), 6018(B) and (D), 6019(A)(1)(a) and (3), 6020(D)(2)(a) and (b) and (3),
6022(E)(2)(a), 6023(C)(1), 6025(A), 6030(A) and (E), 6032(A), 6033(B)(1), (C), and (D),
6034(D), 6035(C), (F), and (G), 6036(C)(1)(a)(intro. para.) and (4) and (I)(2)(a)(i),
6037(B)(intro. para.) and (C), 6105, 6107, and 6108(B); Repeals R.S. 47:33, 43, 44, 45-51,
53-54, 56-59, 60, 60.1, 65, 68, 79, 294, 297(B)-(D) and (F)-(P), 297.1-297.12, 6104, and
6106)