HLS 15RS-1278 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 366
BY REPRESENTATIVE ADAMS
TAX CREDITS: Changes certain refundable tax credits to nonrefundable tax credits
1 AN ACT
2To amend and reenact R.S. 47:297.6(A)(4), 6006(B), 6006.1(C) and (D), 6014(D) and
3 (E)(2), 6015(B)(1) and (2) and (D), 6030(F), 6032(A) and (E), 6034(C)(1)(a)(ii)(dd),
4 (D)(1), and (E)(1)(d)(iv), and 6035(E), and to repeal R.S. 47:6014(E)(4), relative to
5 income and franchise tax credits; to make certain tax credits which are refundable
6 in excess of tax liability nonrefundable; to make certain tax credits nontransferable;
7 and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:297.6(A)(4), 6006(B), 6006.1(C) and (D), 6014(D) and (E)(2),
106015(B)(1) and (2) and (D), 6030(F), 6032(A) and (E), 6034(C)(1)(a)(ii)(dd), (D)(1), and
11(E)(1)(d)(iv) and 6035(E) are hereby amended and reenacted to read as follows:
12 §297.6. Reduction to tax due; rehabilitation of residential structures
13 A.
14 * * *
15 (4) Any excess of the credit portion allowed in a taxable period over the
16 individual income tax liability for that taxable period against which the credit can be
17 applied shall constitute an overpayment, as defined in R.S. 47:1621(A), and the
18 secretary shall make a refund of such overpayment from the current collections of
19 the taxes imposed by Chapter 1 of Subtitle II of this Title, as amended. The right to
20 a refund of any such overpayment shall not be subject to the requirements of R.S.
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1 47:1621(B). The total of all such credits taken in a tax year shall not exceed the total
2 tax liability for that tax year.
3 * * *
4 §6006. Tax credits for local inventory taxes paid
5 * * *
6 B. Credit for taxes paid by corporations shall be applied to state corporate
7 income and corporation franchise taxes. Credit for taxes paid by unincorporated
8 persons shall be applied to state personal income taxes. The taxpayer shall be entitled
9 to a refund for any allowable credit which exceeds the aggregate tax liability of the
10 taxpayer for the taxes imposed by Chapter 1 and Chapter 5 of Subtitle II of this Title.
11 The secretary shall make such refund to the taxpayer in the amount to which he is
12 entitled from the current collections of the taxes collected pursuant to Chapter 1 and
13 Chapter 5 of such Subtitle II. The total of all such credits taken in a tax year shall not
14 exceed the total tax liability for that tax year.
15 * * *
16 §6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental
17 Shelf Lands Act Waters
18 * * *
19 C. Notwithstanding any other provision of law to the contrary in Title 47 of
20 the Louisiana Revised Statutes of 1950, as amended, any excess of allowable credit
21 established by this Section over the aggregate tax liabilities against which such credit
22 can be applied, as provided in this Section, shall constitute an overpayment, as
23 defined in R.S. 47:1621(A), and the secretary shall make a refund of such
24 overpayment from the current collections of the taxes imposed by Chapter 1 or
25 Chapter 5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, as
26 amended, together with interest as provided in R.S. 47:1624. The right to a credit or
27 refund of any such overpayment shall not be subject to the requirements of R.S.
28 47:1621(B). All credits and refunds, together with interest thereon, must be paid or
29 disallowed within ninety days of receipt by the secretary, of any such claim for
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1 refund or credit. The total of all such credits taken in a tax year shall not exceed the
2 total tax liability for that tax year. Failure of the secretary to pay or disallow, in
3 whole or in part, any claim for a credit or a refund shall entitle the aggrieved
4 taxpayer to proceed with the remedies provided in R.S. 47:1625.
5 D.(1) For the purpose of allowing the credit or refund for ad valorem taxes
6 paid to political subdivisions as provided herein, the term "vessel" shall include
7 ships, oceangoing tugs, towboats, and barges. The term "Outer Continental Shelf
8 Lands Act Waters" as used herein shall have the meaning ascribed to it in R.S.
9 47:1702.
10 (2) The acceptance by the sheriff and ex officio tax collector of the ad
11 valorem taxes paid without protest by a taxpayer as certified under R.S. 47:1956(B)
12 shall conclusively establish: that such property was properly classified as a "vessel",
13 for purpose of this Section; that such vessel was "principally operated" in Outer
14 Continental Shelf Lands Act Waters during the applicable tax year; and that such
15 taxpayer shall be entitled to a credit or refund pursuant to this Section.
16 * * *
17 §6014. Credit for property taxes paid by certain telephone companies; fund
18 * * *
19 D. The excess, if any, of the credit allowed by this Section over the aggregate
20 tax liabilities against which such allowable credit may be applied, as provided in this
21 Section, shall constitute an overpayment, as defined in R.S. 47:1621(A), and the
22 secretary shall make a refund of such overpayment from the current collections of
23 the taxes imposed under Chapter 2 of Subtitle II of this Title, together with interest
24 as provided in R.S. 47:1624. The right to a refund of any such overpayment shall not
25 be subject to the requirements of R.S. 47:1621(B). Any such refund, together with
26 interest thereon, shall be paid by the secretary within ninety days of receipt by the
27 secretary of the return on which the credit allowed by this Section is claimed. Failure
28 of the secretary to pay such refund, in whole or in part, shall entitle the aggrieved
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1 taxpayer to proceed with the remedies provided in R.S. 47:1625. The total of all such
2 credits taken in a tax year shall not exceed the total tax liability for that tax year.
3 E.
4 * * *
5 (2) The monies in the fund shall be used solely and exclusively for the
6 purpose of providing funds to pay the credits or refunds as provided in this Section
7 appropriated as provided for by law. The treasurer shall annually transfer to the state
8 general fund an amount equal to the credits taken and refunds issued pursuant to this
9 Section.
10 * * *
11 §6015. Research and development tax credit
12 * * *
13 B.(1) Any taxpayer who employs fifty or more persons and claims for the
14 taxable year a federal income tax credit under 26 U.S.C. 41(a) for increasing research
15 activities shall be allowed a refundable tax credit to be applied against income and
16 corporation franchise taxes due for applications approved and granted by the
17 Department of Economic Development until July 1, 2015. Applications of taxpayers
18 approved and granted on and after July 1, 2015, shall be allowed a nonrefundable tax
19 credit.
20 (2) Any taxpayer who employs less than fifty persons and claims for the
21 taxable year a federal income tax credit under 26 U.S.C. 41(a) for the taxable year,
22 or meets the requirements of Subparagraph (3)(i) of this Subsection, shall be allowed
23 a refundable tax credit to be applied against income and corporation franchise taxes
24 due for applications approved and granted by the Department of Economic
25 Development until July 1, 2015. Applications of taxpayers approved and granted on
26 and after July 1, 2015, shall be allowed a nonrefundable tax credit.
27 * * *
28 D. A taxpayer who receives a federal Small Business Innovation Research
29 Grant as created by the Small Business Innovation Development Act of 1982 (P.L.
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1 97-219), reauthorized by the Small Business Research and Development
2 Enhancement Act (P.L. 102-564), and reauthorized again by the Small Business
3 Reauthorization Act of 2000 (P.L. 106-554), shall be allowed a refundable tax credit
4 in an amount equal to forty percent of the award received during the tax year for
5 applications approved and granted by the Department of Economic Development
6 until July 1, 2015. Applications of taxpayers approved and granted on and after July
7 1, 2015, shall be allowed a nonrefundable tax credit.
8 * * *
9 §6030. Solar energy systems tax credit
10 * * *
11 F. Notwithstanding any other provision of law to the contrary, any excess of
12 allowable credit tax credits allowed on systems purchased and installed before July
13 1, 2015, over the aggregate tax liabilities against which such credit may be applied,
14 as provided in this Section, shall constitute an overpayment, as defined in R.S.
15 47:1621(A), and the secretary shall make a refund of such overpayment from the
16 current collections of the taxes imposed by Chapter 1, Chapter 2, Chapter 2-A,
17 Chapter 2-B, or Chapter 5 of Subtitle II of this Title, together with interest as
18 provided in R.S. 47:1624. The right to a credit or allowed refund of any such
19 overpayment shall not be subject to the requirements of R.S. 47:1621(B). No such
20 refunds shall be allowed for excess tax credits on systems purchased and installed
21 on or after July 1, 2015; the total of all such credits taken in a tax year for such
22 systems shall not exceed the total tax liability for that tax year. All credits and
23 allowed refunds, together with interest thereof, must shall be paid or disallowed
24 within one year of receipt by the secretary of any such claim for refund or credit.
25 Failure of the secretary to pay or disallow, in whole or in part, any claim for a credit
26 or a an allowable refund shall entitle the aggrieved taxpayer to proceed with the
27 remedies provided in R.S. 47:1625.
28 * * *
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1 §6032. Tax credit for certain milk producers
2 A. A resident taxpayer engaged in the business of producing milk for sale
3 shall be allowed a refundable tax credit based on the amount of milk produced and
4 sold. The credit may be claimed against any Louisiana income tax and the
5 corporation franchise tax. The credit shall be allowed when the USDA Uniform
6 Price in Federal Order Number 7 drops below the announced production price any
7 time during the calendar year.
8 * * *
9 E. If no taxes are due, or the credit exceeds the tax liability of the taxpayer
10 for the taxable year, the amount of the credit or excess over the tax liability shall be
11 refunded to the taxpayer. The total of all such credits taken in a tax year shall not
12 exceed the total tax liability for that tax year. The Department of Health and
13 Hospitals shall certify to the Department of Revenue, by January 31 of the following
14 year, which milk producers have been permitted under Louisiana Administrative
15 Code, Title 51, Public Health Sanitary Code, Part VII, Milk, Milk Products, and
16 Manufactured Milk Products, and meet the requirements of the Grade A Pasteurized
17 Milk Ordinance of the 2005 revision of the Food and Drug Administration. Any
18 producer not certified by the Department of Health and Hospitals as provided by this
19 Section shall not be entitled to the credit provided for in this Section.
20 * * *
21 §6034. Musical and theatrical production income tax credit
22 * * *
23 C. Income tax credits for state-certified productions and state-certified
24 musical or theatrical facility infrastructure projects:
25 (1) There is hereby authorized the following types of credits against the state
26 income tax:
27 (a)(ii)
28 * * *
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1 (dd) The initial certification may require the tax credits to be taken and/or,
2 if transferable, require them to be transferred in the tax period in which the credit is
3 earned or the tax credits may be structured in the initial certification of the project
4 to provide that only a portion of the tax credit be taken over the course of two or
5 more tax years.
6 * * *
7 D.(1) The credit shall be allowed against individual or corporate income tax
8 of the companies or financiers of the production or infrastructure project in
9 accordance with their share of the credit as provided for in the application for
10 certification for the production or infrastructure project. A company or financier
11 may, on a one-time basis, transfer the a credit or any refund of an overpayment for
12 a state-certified musical or theatrical production or infrastructure project or a higher
13 education musical or theatrical infrastructure project approved by the Department of
14 Economic Development prior to July 1, 2015, to an individual or other entity
15 including without limitation a bank or other lender, provided that the transfer shall
16 not be effective until receipt by the Department of Revenue of written notice of such
17 transfer. Transferors Such transferors and transferees shall submit to the Department
18 of Revenue, in writing, a notification of any transfer of the tax credit within ten
19 business days after the transfer. The credit shall be allowed for the taxable period
20 in which expenditures eligible for a credit are expended. Any excess of the credit
21 allowed for a state-certified musical or theatrical production or infrastructure project
22 or a higher education musical or theatrical infrastructure project initially certified by
23 the Department of Economic Development prior to July 1, 2015, over the income tax
24 liability against which the credit may be applied shall constitute an overpayment, as
25 defined in R.S. 47:1621(A), and the secretary of the Department of Revenue shall
26 make a refund of such overpayment from the current collections of the taxes imposed
27 by Chapter 1 of Subtitle II of this Title, as amended. The right to a such refund of
28 any such overpayment shall not be subject to the requirements of R.S. 47:1621(B).
29 The tax credit provided for in this Section for state-certified musical or theatrical
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1 productions or infrastructure projects or higher education musical or theatrical
2 infrastructure projects initially certified by the Department of Economic
3 Development on or after July 1, 2015, shall not be refundable or transferable.
4 * * *
5 E. Certification and administration:
6 (1)
7 * * *
8 (d) Upon approval the Department of Economic Development shall initially
9 certify a production or project as a state-certified production or state-certified
10 infrastructure project and send notice of such certification to the applicant and to the
11 secretary of the Department of Revenue. The initial certification shall include all of
12 the following:
13 * * *
14 (iv) In the case of state-certified infrastructure projects, when such tax
15 credits may be taken or, if transferable, when they may be transferred.
16 * * *
17 §6035. Tax credit for conversion of vehicles to alternative fuel usage
18 * * *
19 E. If the tax credit allowed pursuant to the provisions of this Section exceeds
20 the amount of income taxes due or if the taxpayer owes no state income taxes, any
21 excess of the tax credit credits allowed on qualified clean-burning motor vehicle fuel
22 property purchased and installed, or new motor vehicles purchased at retail, before
23 July 1, 2015, over the income tax liability against which the credit can be applied
24 shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary
25 shall make a refund of the overpayment from the current collections of the taxes
26 imposed by Chapter 1 of Subtitle II of this Title, as amended. The right to a refund
27 of any overpayment shall not be subject to the requirements of R.S. 47:1621(B). No
28 such refunds shall be allowed for excess tax credits for qualified clean-burning motor
29 vehicle fuel property purchased and installed, or new motor vehicles purchased at
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1 retail, on and after July 1, 2015; the total of all such credits taken in a tax year for
2 such property and motor vehicles shall not exceed the total tax liability for that tax
3 year.
4 * * *
5 Section 2. R.S. 47:6014(E)(4) is hereby repealed.
6 Section 3. The provisions of this Act shall be applicable to all income tax years
7beginning on and after January 1, 2015, and franchise tax years beginning on and after
8January 1, 2016.
9 Section 4. This Act shall become effective upon signature by the governor or, if not
10signed by the governor, upon expiration of the time for bills to become law without signature
11by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
12vetoed by the governor and subsequently approved by the legislature, this Act shall become
13effective on the day following such approval.
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)]
HB 366 Original 2015 Regular Session Adams
Abstract: Changes various refundable income and corporate franchise tax credits to
nonrefundable tax credits.
Present law provides for the payment of certain credits in excess of the tax liability for the
taxable period, also known as refundable credits, including the following credits:
(1)Rehabilitation of residential structures (R.S. 47:297.6) - credit for the cost of the
rehabilitation of certain structures in a National Register Historic District
(2)Local inventory taxes (R.S. 47:6006) - credit against income or corporation
franchise tax for ad valorem property taxes paid to political subdivisions on
inventory held.
(3)Vessels in Outer Continental Shelf Lands Act Waters (R.S. 47:6006.1) - credit
against income or corporation franchise tax for ad valorem property taxes paid to
political subdivisions on vessels in Outer Continental Shelf Lands Act Waters.
(4)Property taxes paid by certain telephone companies (R.S. 47:6014) - credit against
income corporation franchise tax for certain ad valorem property taxes paid to
political subdivisions by a telephone company.
(5)Research and development tax credit (R.S. 47:6015) - credit for qualified research
expenses.
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(6)Solar energy systems tax credit (R.S. 47:6030) - credit a portion of the cost of a solar
energy system that is already installed in a newly constructed residence or which is
purchased and installed at an existing residence.
(7)Certain milk producers (R.S. 47:6032) - credit based on certain amounts of milk
produced and sold
(8)Musical and theatrical production income (R.S. 47:6034)- credit for state-certified
musical or theatrical productions or infrastructure projects or for higher education
musical or theatrical infrastructure projects certified by the Department of Economic
Development.
(9)Conversion of vehicles to alternative fuel usage (R.S. 47:6035) - credit for a portion
of the cost of qualified clean-burning motor vehicle fuel property which operates on
"alternative fuel", defined as natural gas, liquified petroleum gas, and any nonethanol
based advanced biofuel and includes certain electric vehicles.
Proposed law changes credits provided for in present law from refundable credits to
nonrefundable credits for which the taxpayer will not receive payment in excess of the tax
liability for the taxable period.
Applicable to all income tax years beginning on and after January 1, 2015, and franchise tax
years beginning on and after January 1, 2016.
Effective upon signature of the governor.
(Amends R.S. 47:297.6(A)(4), 6006(B), 6006.1(C) and (D), 6014(D) and (E)(2), 6015(B)(1)
and (2) and (D), 6030(F), 6032(A) and (E), 6034(C)(1)(a)(ii)(dd), (D)(1), and (E)(1)(d)(iv)
and 6035(E); repeals R.S. 47:6014(E)(4))
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