HLS 15RS-664 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 404
BY REPRESENTATIVE TALBOT
TAX/INCOME-CREDIT: Authorizes the invalidation and recovery of tax credits when an
investor is convicted of certain criminal violations
1 AN ACT
2To enact R.S. 47:6007(G), relative to income tax; to provide with respect to the motion
3 picture investor tax credit; to provide for the invalidation of tax credits under certain
4 circumstances; to provide for certain requirements; to authorize the recovery of tax
5 credits under certain circumstances; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6007(G) is hereby enacted to read as follows:
8 ยง6007. Motion picture investor tax credit
9 * * *
10 G.(1) If the office determines that an investor who was granted a tax credit
11 pursuant to the provisions of this Section has been convicted of a criminal violation
12 related to the application for or awarding of tax credits provided for in this Section,
13 then all of the tax credits which have been issued to the investor shall be invalidated
14 by the office and the secretary and all of the tax credits shall be recovered by the
15 secretary of the Department of Revenue. In order to recover the credits, in addition
16 to any collection remedy authorized by law, the secretary of the Department of
17 Revenue may increase the investor's state income tax liability by the amount of
18 credits invalidated by the office until the amount of the invalidated tax credits is fully
19 recovered, including any penalty, interest, and other costs.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-664 ORIGINAL
HB NO. 404
1 (2) The provisions of this Subsection shall also apply if the office determines
2 that an investor who was granted a tax credit was convicted of a criminal violation
3 involving fraud or misrepresentation of any information included in the tax credit
4 application.
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 404 Original 2015 Regular Session Talbot
Abstract: Authorizes the invalidation of tax credits if an investor is convicted of certain
violations associated with applying for and the awarding of credits.
Present law provides for an income tax credit for La. taxpayers 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 $1million dollars.
Present law provides for the recapture and recovery of credits if the office finds that monies
for which an investor received tax credits are not expended on state-certified productions
within the required time frame.
Proposed law retains present law but adds requirement for the invalidation of tax credits
awarded if the office determines that an investor who was granted a tax credit has been
convicted of a criminal violation related to the application for or awarding of tax credits.
Authorizes the Dept. of Revenue to increase the investor's state income tax liability by the
amount of credits invalidated by the office until the amount of the invalidated tax credits is
fully recovered, including any penalty, interest, and other costs.
Proposed law provides for the invalidation of tax credits awarded if the office determines
that an investor who was granted a tax credit has been convicted of a criminal violation
involving fraud or misrepresentation of any information included in the tax credit
application.
(Adds R.S. 47:6007(G))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.