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)]
CONFERENCE COMMITTEE REP ORT DIGEST
HB 387 2015 Regular Session Leger
Keyword and oneliner of the instrument as it left the House
TAX/INCOME-CREDIT: Extends the sunset of the tax credit for the rehabilitation of historic
structures for nonresidential property and provides eligibility requirements
Report rejects Senate amendments which would have:
1. Changed the sunset date of the credit from Jan. 1, 2022 to Jan. 1, 2019.
2. Added a $45 million cap for the amount of credits allowed in any taxable year.
3. Made technical changes.
Report amends the bill to:
1. Maintain the amount of the tax credit for 25% of eligible costs and expenses incurred prior
to Jan. 1, 2018, and decrease the amount of the tax credit from 25% to 20% for eligible costs
and expenses incurred on and after Jan. 1, 2018, regardless of the year in which the property
is placed in service.
2. Made technical changes.
Digest of the bill as proposed by the Conference Committee
Present law provides for an income or corporation franchise tax credit for the amount of eligible
costs and expenses incurred during the rehabilitation of a historic structure located in a downtown
development district or a cultural district. Provides for an application fee. The credit shall not
exceed 25% of the eligible costs and expenses and no taxpayer shall claim more than $5 million of
credit annually for any number of structures rehabilitated within a particular downtown development
or cultural district. The credit sunsets on Jan. 1, 2018.
Present law further provides that the tax credit for qualified rehabilitation expenditures is earned only
in the year in which the property attributable to the expenditures is placed in service. Proposed law retains present law with regard to the amount of the tax credit for eligible expenses
incurred prior to Jan. 1, 2018, but reduces the amount of the tax credit from 25% to 20% of eligible
costs and expenses incurred on and after Jan. 1, 2018, regardless of the year in which the property
is placed in service.
Proposed law prohibits projects whose rehabilitation costs and expenses are paid for with state or
federal funds from being eligible to receive the tax credits, unless the state or federal funds used in
the rehabilitation are reported as taxable income or are structured as repayable loans.
Proposed law directs the state historic preservation office to consult with the Dept. of Revenue in
determining the amount of the application fee to be collected and requires that the application fee
be distributed equitably between the entities.
Present law provides for the sunset of present law for taxable years ending prior to Jan. 1, 2018.
Proposed law changes present law by extending the sunset of the program from taxable years ending
prior to Jan. 1, 2018 to taxable years ending prior to Jan. 1, 2022.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6019(A) and (2)(c) and (C))