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Regular Session, 2013
SENATE BILL NO. 197
BY SENATORS RISER AND MORRELL AND REPRESENTATIVES BURFORD AND
PATRICK WILLIAMS
TAX/TAXATION. Extends income tax credits for the rehabilitation of certain owner-
occupied residential structures and provides for applicability. (gov sig)
AN ACT1
To amend and reenact R.S. 47:297.6(A)(1) and (4) and to enact R.S. 22:832(F) and R.S.2
47:297.6(C) and (D), relative to individual income tax credits; to provide for3
premium tax credits; to extend the taxable periods in which the tax credit shall be4
applicable; to provide for an effective date; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:832(F) is hereby enacted to read as follows:7
§832. Reduction of tax when certain investments are made in Louisiana8
* * *9
F. There shall be a premium tax reduction credit for costs associated10
with the rehabilitation of residential structures, as provided for in R.S. 47:297.6,11
on taxes charged on insurance premiums under this Title including but not12
limited to R.S. 22:345, 439, 831, 836, 837, 838, and 842.13
Section 2. R.S. 47:297.6(A)(1) and (4) are hereby amended and reenacted and R.S.14
47:297.6(C) and (D) are enacted to read as follows15
§297.6. Reduction to tax due; rehabilitation of residential structures16
A.(1) There shall be a credit against premium tax as provided in R.S.17 SB NO. 197
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words in boldface type and underscored are additions.
22:832(F) and individual income tax liability due under this Title and under Title1
22 of the Louisiana Revised Statutes of 1950, for the amount of eligible costs and2
expenses incurred during the rehabilitation of an owner-occupied residential or3
owner-occupied mixed use structure located in a National Register Historic District,4
a local historic district, a Main Street District, a cultural products district, or a5
downtown development district, or such owner-occupied residential structure which6
has been listed or is eligible for listing on the National Register, or such structure7
which has been certified by the State Historic Preservation Office as contributing to8
the historical significance of the district, or a vacant and blighted owner-occupied9
residential structure located anywhere in the state that is at least fifty years old. The10
tax credit authorized pursuant to this Section shall be limited to one credit per11
structure rehabilitated. The total credit shall not exceed twenty-five thousand dollars12
per structure. In order to qualify for that credit, the rehabilitation costs for the13
structure must exceed ten thousand dollars.14
(a) If the credit is for the rehabilitation of an owner-occupied residential15
structure, the credit shall be twenty-five percent of the eligible costs and expenses16
of a rehabilitation for which an application for credit has been filed for the first time17
after July 1, 2011. If the residential structure is owned and occupied by two or more18
individuals, the applicable percentage shall be based on the sum of all owner-19
occupants who contribute to the rehabilitation, and the credit will be divided between20
the owner-occupants in proportion to their contribution to the eligible costs and21
expenses.22
(b) If the credit is for the rehabilitation of a vacant and blighted owner-23
occupied residential structure that is at least fifty years old, the credit shall be fifty24
percent of the eligible costs and expenses of a rehabilitation for which an application25
for credit has been filed for the first time after July 1, 2011.26
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(4) Any excess of the credit portion allowed in a taxable period over the28
premium tax or individual income tax liability for that taxable period against which29 SB NO. 197
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the credit can be applied shall constitute an overpayment, as defined in R.S.1
47:1621(A), and the secretary shall make a refund of such overpayment from the2
current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as3
amended. The right to a refund of any such overpayment shall not be subject to the4
requirements of R.S. 47:1621(B).5
* * *6
C. All taxpayers required to pay the insurance premium tax under Title7
22 of the Louisiana Revised Statutes of 1950, including but not limited to R.S.8
22:345, 439, 831, 836, 837, 838, and 842 may claim any credit allowed under this9
Section on their annual premium tax statement.10
D. The provisions of this Section shall be effective for the taxable years11
ending prior to January 1, 2018.12
Section 3. This Act shall become effective upon signature by the governor or, if not13
signed by the governor, upon expiration of the time for bills to become law without signature14
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If15
vetoed by the governor and subsequently approved by the legislature, this Act shall become16
effective on the day following such approval.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Danielle Doiron.
DIGEST
Present law authorizes an individual income tax credit for the amount of eligible costs and
expenses incurred during the rehabilitation of an owner-occupied residential or owner-
occupied mixed use structure located in a National Register Historic District, a local historic
district, a Main Street District, a cultural products district, or a downtown development
district, or such owner-occupied residential structure which has been listed or is eligible for
listing on the National Register, or such structure which has been certified as contributing
to the historical significance of the district, or a vacant and blighted owner-occupied
residential structure located anywhere in the state that is at least 50 years old.
Proposed law retains present law and provides that the credit also be applied to the insurance
premium tax.
Proposed law authorizes the taxpayer to claim the premium tax credit on their annual
premium tax statement.
Proposed law provides that the tax credit is effective for taxable years ending prior to Jan.
1, 2018. SB NO. 197
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Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:297.6(A)(1) and (4); adds R.S. 22:832(F) and R.S. 47:297.6(C) and (D))