HLS 15RS-1280 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 465
BY REPRESENTATIVE ADAMS
TAX/TAXATION: Establishes the Student Adjustment for a Valuable Education (SAVE)
Credit Program.
1 AN ACT
2To enact R.S. 47:6039, relative to tax credits; to establish the Student Adjustment for a
3 Valuable Education (SAVE) Credit Program; to grant transferable SAVE Fee Credits
4 and SAVE Scholarship Credits for SAVE fees charged by a public institution of
5 postsecondary education; to provide for the transfer of credits to such institutions and
6 for payment of such credits to such institutions; to provide for use of such funds
7 paid; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:6039 is hereby enacted to read as follows:
10 ยง6039. Student Adjustment for a Valuable Education (SAVE) Credit Program
11 A. The Program. There shall be the following credits against individual and
12 corporate income tax and corporate franchise tax:
13 (1) A transferable, nonrefundable credit against sales and use, gasoline and
14 special fuels, and income tax liability of a student, or his parent or legal guardian, to
15 be obtained and used solely as provided for in Subsection C of this Section, for
16 amounts the student, or his parent or legal guardian, is required to pay to a public
17 institution of postsecondary education for enrollment of the student on and after July
18 1, 2015, for a fee designated by the institution as a Student Adjustment for a
19 Valuable Education (SAVE) fee, hereinafter, referrred to as the "SAVE fee". Such
20 credit shall be, hereinafter, referred to as the "SAVE Fee Credit".
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HB NO. 465
1 (2) A credit against income and franchise tax liability to be obtained and
2 used solely as provided for in Subsection D of this Section for the amount of
3 donations made on and after July 1, 2015, to any nonprofit entity designated by a
4 public institution of postsecondary education for the purpose of funding the payment
5 of SAVE fees or such other purposes as the institution requires. Such credit shall be
6 referred to as the SAVE Scholarship Credit.
7 B. Allocation of SAVE program credits. (1) The type of tax credit and the
8 total amount of such tax credit which may be granted pursuant to this Section in each
9 fiscal year for both SAVE credits shall be determined by the institution's
10 management board, from the allocation of the credits made to the management board
11 by the Board of Regents in the manner provided for in this Subsection.
12 (2) The total amount of tax credit which may be utilized by all public
13 institutions of postsecondary education during a fiscal year pursuant to this Section
14 shall be the net increase in the taxes collected during each fiscal year pursuant to
15 Chapter 8 of this Subtitle as a result of the enactment of the Act which originated as
16 House Bill No. _____ of the 2015 Regular Session of the Legislature, as determined
17 by the Revenue Estimating Conference. Such determination shall be approved by the
18 Joint Legislative Committee on the Budget.
19 (3) Once the total amount of tax credit which may be utilized by all public
20 institutions of postsecondary education during a fiscal year is determined as provided
21 for in Paragraph (2) of this Subsection, the Board of Regents shall determine and
22 provide written notification to each postsecondary education management board of
23 the following:
24 (a) The amount of tax credit allocated to each management board based upon
25 the proportion of full-time equivalent students enrolled in the public postsecondary
26 education institutions supervised by each board to the total number of full-time
27 equivalent students enrolled in all Louisiana public postsecondary education
28 institutions.
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HB NO. 465
1 (b) The board shall further designate the amount of each type of tax credit,
2 the SAVE Fee Credit or the SAVE Scholarship Credit, which is included in each
3 management board's allocation.
4 (4) Each management board shall, in turn, determine and provide written
5 notification to each public postsecondary education institution supervised by the
6 board of the amount of each type of tax credit, the SAVE Fee Credit or the SAVE
7 Scholarship Credit, which may be utilized by the institution.
8 C. SAVE Fee Credit. The tax credit provided for in Paragraph (A)(1) of this
9 Section shall be obtained and used solely as follows:
10 (1) The student or the student's parent or legal guardian who is liable for
11 payment of the fee, as a condition for receiving the tax credit, shall transfer the
12 SAVE Fee Credit to the institution and provide the institution such information that
13 the institution may be reasonably required to obtain by the Department of Revenue
14 in order to facilitate the application and funding of the credit. The Department of
15 Revenue shall only fund the SAVE Fee Credits to the public institutions of
16 postsecondary education, as transferees of the credits.
17 (2) If claimed by the student or the student's parent or legal guardian who is
18 liable for payment of the fee, the credit shall be calculated by the institution and
19 granted to him according to the amount of all applicable payments of state taxes for
20 the tax year which shall be attributable to his income according to the most recent
21 edition of the Consumer Expenditure Survey of the Bureau of Labor Statistics of the
22 United States Department of Labor.
23 (3) The tax credit shall be transferred by the student or the student's parent
24 or legal guardian to the public institution of postsecondary education charging the
25 fee for one hundred percent of the face value of the credit.
26 (4) The public institution of postsecondary education charging the fee
27 designated by the institution as a SAVE fee shall accept the transfer of the tax credit
28 as full or partial payment of the fee as the case may be.
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1 (5) Upon transfer of the credit to the institution, the institution shall notify
2 the Department of Revenue and provide it with such documentation of the transfer
3 that may be required by the department. The Department of Revenue shall make
4 payment to the public institution of postsecondary education in the amount to which
5 it is entitled from the current collections of the taxes collected pursuant to Chapter
6 8 of this Subtitle.
7 D. SAVE Scholarship Credit. The tax credit provided for in Paragraph (A)(2)
8 of this Section shall be obtained and used solely as follows:
9 (1) A public institution of postsecondary education may designate and
10 authorize a nonprofit entity to fund the payment of SAVE fees levied by the
11 institution or to fund such other purposes as the institution requires by receiving
12 donations for such funding from taxpayers up to the amount of the SAVE
13 Scholarship Credit allocated to the institution from its supervising management
14 board pursuant to Subsection B of this Section.
15 (2) Donations made to such nonprofit entity up to the amount allocated shall
16 entitle the donors to a credit for the amount of their donations. The tax credit shall
17 be taken against the applicable tax due in the tax year in which the credit is earned
18 but shall not be refundable and shall not exceed the tax due for that tax year.
19 (3) The donations to the institution may be used for the payment of SAVE
20 fees levied by the institution for those students or the students' parents or legal
21 guardians who do not have a sufficient SAVE Fee Credit to offset the entire SAVE
22 fee levied by the institution or to fund such other purposes as the institution requires.
23 E. No student or student's parent or legal guardian shall be required to pay
24 a SAVE fee not offset by a SAVE Fee Credit or a payment from a SAVE
25 Scholarship donation provided for in this Section, except for any student, parent, or
26 legal guardian who fails to provide the information required pursuant to Paragraph
27 (C)(1) of this Section.
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HB NO. 465
1 Section 2. The provisions of this Act shall be applicable to all income tax years
2beginning on and after January 1, 2015, and franchise tax years beginning on and after
3January 1, 2016.
4 Section 3. This Act shall become effective upon signature by the governor or, if not
5signed by the governor, upon expiration of the time for bills to become law without signature
6by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7vetoed by the governor and subsequently approved by the legislature, this Act shall become
8effective 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 465 Original 2015 Regular Session Adams
Abstract: Establishes the Student Adjustment for a Valuable Education (SAVE) Credit
Program.
Proposed law establishes the Student Adjustment for a Valuable Education (SAVE) Credit
Program granting two credits against individual and corporate income tax and corporate
franchise tax:
(1)A SAVE Fee Credit. A transferable, nonrefundable credit against sales and use,
gasoline and special fuels, and income tax liability of a student, or his parent or legal
guardian, for amounts the student, or his parent or legal guardian, is required to pay
to a public institution of postsecondary education for enrollment of the student on
and after July 1, 2015, for a fee designated by the institution as a SAVE fee.
(2) A SAVE Scholarship Credit. A credit against income and franchise tax liability for
the amount of donations made on and after July 1, 2015, to any nonprofit entity
designated by a public institution of postsecondary education for the purpose of
funding the payment of SAVE fees or such other purposes as the institution requires.
The type of the two tax credits above and the total amount of such tax credits which may be
granted in each fiscal year is to be determined by the institution's management board, from
the allocation of the credits made to the management board by the Board of Regents.
The total amount of tax credit which may be utilized by all public institutions of
postsecondary education during a fiscal year shall be the net increase in the taxes collected
during each fiscal year from the tobacco taxes as a result of the enactment of the Act
originating as House Bill No. _____ of the 2015 R.S., as determined by the Revenue
Estimating Conference and approved by the Joint Legislative Committee on the Budget.
Once the total amount of tax credit which may be utilized by all public institutions of
postsecondary education during a fiscal year is determined as provided above, the Board of
Regents shall determine and provide written notification to each postsecondary education
management board of the following:
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(1)The amount of tax credit allocated to each management board based upon the
proportion of full-time equivalent students enrolled in the public postsecondary
education institutions supervised by each board to the total number of full-time
equivalent students enrolled in all Louisiana public postsecondary education
institutions.
(2)The amount of each type of tax credit which is included in each management board's
allocation.
Each management board shall, in turn, determine and provide written notification to each
public postsecondary education institution supervised by the board of the amount of each
type of tax credit which may be utilized by the institution.
Proposed law provides that the SAVE Fee Credit shall be obtained and used solely as
follows:
(1)The student or the student's parent or legal guardian who is liable for payment of the
fee, as a condition for receiving the tax credit, must transfer the SAVE Fee Credit to
the institution and provide the institution such information that the institution may
be reasonably required to obtain by the Department of Revenue in order to facilitate
the application and funding of the credit. The Department of Revenue must only fund
the SAVE Fee Credits to the public institutions of postsecondary education, as
transferees of the credits.
(2)The credit must be calculated by the institution and granted to him according to the
amount of all applicable payments of state taxes for the tax year which is attributable
to his income according to the most recent edition of the Consumer Expenditure
Survey of the Bureau of Labor Statistics of the United States Department of Labor.
(3)The tax credit must then be transferred to the institution charging the fee for 100%
of the face value of the credit.
(4)The institution charging the fee designated by the institution as a SAVE fee must
accept the transfer of the tax credit as full or partial payment of the fee as the case
may be.
(5)Upon transfer, the institution must notify the Department of Revenue and provide it
with such documentation of the transfer that may be required by the department. The
department must make payment to the institution in the amount to which it is entitled
from the current collections of the tobacco taxes.
Proposed law provides that the SAVE Scholarship Credit shall be obtained and used solely
as follows:
(1)A public institution of postsecondary education is authorized to designate a nonprofit
entity to fund the payment of SAVE fees levied by the institution or to fund such
other purposes as the institution requires by receiving donations for such funding
from taxpayers up to the amount of the SAVE Scholarship Credit allocated to the
institution from its supervising management board.
(2)Donations made to such nonprofit entity up to the amount allocated entitles the
donors to a credit for the amount of their donations, to be taken against the applicable
tax due in the tax year in which the credit is earned, but the credit is not refundable.
(3)The donations to the institution may be used for the payment of SAVE fees levied
by the institution for those students or the students' parents or legal guardians who
do not have a sufficient SAVE Fee Credit to offset the entire SAVE fee or to fund
such other purposes as the institution requires.
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HB NO. 465
Proposed law prohibits a student or a student's parent or legal guardian from being required
to pay a SAVE fee not offset by a SAVE Fee Credit or a payment from a SAVE Scholarship
donation, unless they failed to provide the information required for the SAVE Fee Credit.
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 governor or lapse of time for gubernatorial action.
(Adds R.S. 47:6039)
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