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 629 2015 Regular Session Jackson
Keyword and oneliner of the instrument as it left the House
TAX CREDITS: Reduces income and corporation franchise tax credits
Report adopts Senate amendments to:
1. Increase the reduction to the amount of the tax credits from 20% to 28%.
2. Delete the following tax credits from the bill:
• R.S. 47:33 Credit for taxes paid to other states
• R.S. 47:297.2 Credit for physically or mentally incapable dependents
• R.S. 47:6006 Credits for local inventory taxes
• R.S. 47:6006.1 Credit for taxes paid for vessels in Outer Continental Shelf Lands Act
Waters
• R.S. 47:6007 Motion picture investor tax credit
• R.S. 47:6015 Research and development tax credit
• R.S. 47:6030 Solar energy systems tax credit
3. Make technical changes.
Report rejects Senate amendments which would have:
1. Deleted the following tax credits from the bill:
• R.S. 47:6020 Angel Investor tax credit program • R.S. 47:6022 Digital interactive media and software tax credit
• R.S. 47:6036 Ports of Louisiana tax credit
2. Authorized a credit against a taxpayer's 2017, 2018, and 2019 return for any claim for a
credit not allowed by proposed law on returns filed after July 1, 2015 pursuant to an
extension of time to file that was granted prior to July 1, 2015.
3. Prohibited application of proposed law to amended returns timely filed on or after July 1,
2015, relating to an original return that was filed on or prior to July 1, 2015 and properly
claimed an exemption, credit, rebate, or deduction.
4. Made technical changes.
Report amends the bill to:
1. Add the insurance premium tax credit to the bill.
2. Make the reduction of the tax credit applicable to projects that receive initial certification on
or after July 1, 2015 for the following credits:
• R.S. 47:6023 Sound recording investor tax credit
• R.S. 47:6034 Musical and theatrical production income tax credit
• R.S. 51:2354 Technology commercialization credit
• R.S. 51:2399.3 Modernization tax credit
3. Sunset the provisions of proposed law relative to the reduction of the amount of the tax
credits on June 30, 2018.
4. Make technical changes.
Digest of the bill as proposed by the Conference Committee
Present law provides for the following income and corporation franchise tax credits:
(1)R.S. 25:1226.4 Atchafalaya Trace Heritage Area Development Zone tax credit
(2)R.S. 47:34 Corporation tax credit
(3)R.S. 47:35 Neighborhood assistance tax credit (4)R.S. 47:37 Credit for contributions to educational institutions
(5)R.S. 47:227 Offset against tax; insurance premium
(6)R.S. 47:265 Credits arising from refunds by utilities
(7)R.S. 47:287.664 Credits arising from refunds by utilities
(8)R.S. 47:287.748 Corporation tax credit; re-entrant jobs credit
(9)R.S. 47:287.749 Jobs credit
(10)R.S. 47:287.752 Credit for employment of first-time nonviolent offenders
(11)R.S. 47:287.753 Neighborhood assistance tax credit
(12)R.S. 47:287.755 Credit for contributions to educational institutions
(13)R.S. 47:287.758 Credit for bone marrow donor expense
(14)R.S. 47:287.759 Credit for employee and dependent health insurance coverage
(15)R.S. 47:297 Reduction to tax due
(16)R.S. 47:297.6 Credit for rehabilitation of residential structures
(17)R.S. 47:297.9 Certain military servicemembers and dependents hunting and fishing licenses
(18)R.S. 47:6004 Employer Credit
(19)R.S. 47:6005 Qualified new recycling manufacturing equipment and service contracts
(20)R.S. 47:6008 Credit for donations to assist playgrounds in economically depressed areas
(21)R.S. 47:6009 Louisiana Basic Skills Training Tax Credit
(22)R.S. 47:6012 Employer tax credits for donations of materials, equipment, advisors, or
instructors
(23)R.S. 47:6013 Credit for donations to public schools
(24)R.S. 47:6017 Credit for expenses paid by economic development corporations
(25)R.S. 47:6018 Credit for purchasers from "PIE contractors" (26)R.S. 47:6020 Angel Investor tax credit program
(27)R.S. 47:6022 Digital interactive media and software tax credit
(28)R.S. 47:6023 Sound recording investor tax credit
(29)R.S. 47:6025 Credit for La. Citizens Property Insurance Corp. assessment
(30)R.S. 47:6026 Cane River heritage tax credit
(31)R.S. 47:6032 Credit for certain milk producers
(32)R.S. 47:6034 Musical and theatrical production income tax credit
(33)R.S. 47:6035 Credit for conversion of vehicles to alternative fuel usage
(34)R.S. 47:6037 Credit for "green job industries"
(35)R.S. 51:1807 Incentives (Urban Revitalization)
(36)R.S. 51:2354 Technology commercialization credit
(37)R.S. 51:2399.3 Modernization tax credit
Present law (R.S. 47:34) provides for an income tax credit to be used against the tax liability of
corporate income taxpayers who generate new full-time and part-time jobs in the state. This tax
credit is allowed in lieu of any tax exemptions granted pursuant to the Louisiana Enterprise Zone
Act, any ad valorem property tax exemptions for business or industry, or any ad valorem tax
exemption allowed through the State Board of Commerce and Industry pursuant to La. Const. Art.
VII, Sec. 21(F). The credit is equal to the number of new employees multiplied by varying amounts.
Proposed law retains present law but reduces the eligible amount per employee as follows:
(1)From $100 to $72 per eligible new employee per taxable year.
(2)From $200 to $140 per eligible new economically disadvantaged employee per taxable year.
(3)From $250 to $180 per new employee who is a resident of a neighborhood with an
employment rate of 10% or more per taxable year.
Present law (R.S. 47:35) provides for an income tax credit against the state corporate income tax
liability for any business firm engaged in certain activities of providing neighborhood assistance, job
training, education for individuals, community services, or crime prevention in the state. Present law
requires the business firm to submit a proposal with certain information relative to the project for
approval by the commissioner of administration. A tax credit of up to 70% of the actual amount contributed is authorized, but the tax credit for any corporation shall not exceed $250,000 annually.
Proposed law retains present law but reduces the amount of the credit from 70% to 50% and reduces
the maximum credit amount from $250,000 to $180,000.
Present law (R.S. 47:37) provides for an income tax credit against a taxpayer's tax liability for
contributions, donations, or selling below cost tangible movable property to a public educational
institution for the purposes of research, research training, or direct education of students in the state.
The credit allowed is 40% of the property's value, or in the case of sale below cost, 40% of the
difference between the price received and the value of the property.
Proposed law retains present law but reduces the allowable credit from 40% to 29% of either the
property value or the difference between the price received and the value of the property.
Present law (R.S. 47:227) provides for an offset for every insurance company against any tax
incurred for taxes on premiums.
Proposed law retains present law but reduces the amount of the offset from any tax incurred to 72%
of the taxes incurred on premiums.
Present law (R.S. 47:265 and 287.664) provides for an income tax credit for utility companies
against Louisiana income tax for amounts the utility company may have refunded to a customer
pursuant to an order of the court or regulatory agency as a result of the denial of a proposed rate
increase. The credit may be taken in lieu of a deduction from gross income if the deduction would
result in a net loss. The credit is equal to the amount of the income tax increase had the amounts
refunded been included in the gross income.
Proposed law retains present law but reduces the amount of the credit from the amount of the income
tax increase to 72% of the income tax increase.
Present law (R.S. 47:287.748) provides for an income tax credit against the corporate income tax
liability for taxpayers who employ an eligible Intensive Incarceration Program re-entrant. The credit
allowed is $150 per eligible re-entrant employed, but shall not exceed 50% of the corporate income
tax.
Proposed law retains present law but reduces the credit from $150 per eligible re-entrant to $108 per
eligible re-entrant and decreases the maximum allowable credit from 50% of the corporate income
tax to 36% of the corporate income tax.
Present law (R.S. 287.749) provides for an income tax credit to be used against the tax liability of
corporate income taxpayers who generate new full-time and part-time jobs in the state. This tax
credit is allowed in lieu of any tax exemptions granted pursuant to the Louisiana Enterprise Zone
Act, any ad valorem property tax exemptions for business or industry, or any ad valorem tax
exemption allowed through the State Board of Commerce and Industry pursuant to La. Const. Art.
VII, Sec. 21(F). The credit is equal to the number of new employees multiplied by varying amounts. Proposed law retains present law but decreases the eligible amount per employee as follows:
(1)From $100 to $72 per eligible new employee per taxable year.
(2)From $200 to $144 per eligible new economically disadvantaged employee per taxable year.
(3)From $250 to $162 per new employee who is a resident of a neighborhood with an
employment rate of 10% or more per taxable year.
Present law (R.S. 47:287.752) provides for an income tax credit for each taxpayer who provides full-
time employment to an individual who has been convicted of a first-time nonviolent offense.
Requires certification by the employee's probation officer that the employee has successfully
completed a drug treatment program, or any other court-ordered program, and that the employee has
worked 180 days full-time for the employer seeking the credit. The credit allowed is $200 per
eligible employee per taxable year.
Proposed law retains present law but reduces the amount of the credit from $200 per eligible
employee to $144 per eligible employee.
Present law (R.S. 47:287.753) provides for an income tax credit against the state corporate income
tax liability for any business firm engaged in certain activities of providing neighborhood assistance,
job training, education for individuals, community services, or crime prevention in the state. Present
law requires the business firm to submit a proposal with certain information relative to the project
for approval by the commissioner of administration. A tax credit of up to 70% of the actual amount
contributed is authorized, but the tax credit for any corporation shall not exceed $250,000 annually.
Proposed law retains present law but reduces the amount of the credit from 70% to 50% and
decreases the maximum tax credit amount from $250,000 to $180,000.
Present law (R.S. 47:287.755) provides for an income tax credit against a taxpayer's tax liability for
contributions, donations, or selling below cost tangible movable property to a public educational
institution for the purposes of research, research training, or direct education of students in the state.
The credit allowed is computed at the rate of 40% of the property's value, or in the case of sale below
cost, 40% of the difference between the price received and the value of the property.
Proposed law retains present law but reduces the allowable credit rates from 40% to 29% of either
the property value or the difference between the price received and the value of the property.
Present law (R.S. 47:287.758) provides an income tax credit for taxpayers for certain bone marrow
donor expenses. The amount of the credit is 25% of the bone marrow donor expenses incurred
during the tax year by an employer to provide the program.
Proposed law retains present law but reduces the amount of the credit from 25% to 18%.
Present law (R.S. 47:287.759) provides for an income tax credit against the income tax for the period in which the credit was earned for certain contractors or subcontractors who contract to do public
work. Present law allows a credit of 5% on 40% of the amount of the contract to do public work if
the contractor or subcontractor offers 85% of their full-time employees health insurance coverage
and pays 75% of the total premium for the health insurance coverage for each employee and not less
than 50% for each dependent. Further limits the amount of the credit to not more than $3 million
per year.
Proposed law retains present law but reduces the amount of the credit allowed from 5% to 3.6% and
reduces the maximum credit amount from $3 million to $2.16 million.
Present law (R.S. 47:297(A)) provides for a tax credit of $100 for any taxpayer when the taxpayer,
taxpayer's spouse, or dependent is deaf, blind, mentally incapacitated, or has lost the use of one or
more limbs.
Proposed law retains present law but reduces the amount of the credit from $100 to $72.
Present law (R.S. 47:297(B)) provides for a tax credit for the elderly, contributions to candidates for
public office, investment credits, credits for foreign tax, work incentive credits, jobs credits, and
residential credits. The amount of the credit is the lesser of $25 or 10% of the same credit allowed
on the federal income tax return for the same tax year.
Proposed law retains present law but reduces the amount of the credit from the lesser of $25 or 10%
of the credit allowed on the federal return to the lesser of $18 or 7.2% of the credit allowed on the
federal return.
Present law (R.S. 47:297(C)) provides for an income tax credit for individuals in an amount equal
to the state gasoline and motor fuels tax and special fuels taxes paid to operate or propel a
commercial fishing boat.
Proposed law retains present law but reduces the amount of the credit from 100% of the amount of
the gasoline, motor fuels, and special fuels taxes to 72%.
Present law (R.S. 47:297(D)) provides a $25 income tax credit per child for individual taxpayers for
educational expenses.
Proposed law retains present law but reduces the amount of the credit from $25 to $18.
Present law (R.S. 47:297(F)) provides an income tax credit for individual taxpayers in an amount
equal to 33.3% of the amount contributed to a family responsibility program under the provisions
of present law. Further limits the credit to $200 per year.
Proposed law retains present law but reduces the amount of the credit from 33.3% to 24% of the
contribution and reduces the maximum credit from $200 to $144.
Present law (R.S. 47:297(G)) provides for an income tax credit for taxpayers who purchase certain environmental equipment designed to recover or recycle chloroflourocarbons used as refrigerants
in commercial, home, and automobile air-conditioning systems, refrigeration units, and industrial
cooling applications. The credit allowed is 20% of the purchase price of the equipment, or if the
equipment is financed, 20% of the original purchase price paid in that tax year.
Proposed law retains present law but reduces the amounts of the credit from 20% of the purchase
price to 14.4%.
Present law (R.S. 47:297(H)) provides for an income tax credit for certain medical doctors and
dentist who practice in designated rural areas. The credit allowed is $5,000 per taxable year up to
a maximum of five years for each taxpayer meeting the criteria.
Proposed law retains present law but reduces the amount of the credit from $5,000 to $3,600 per
taxable year.
Present law (R.S. 47:297(I)) provides an income tax credit for taxpayers for certain bone marrow
donor expenses. The amount of the credit if 25% of the bone marrow donor expenses incurred
during the tax year by an employer to provide the program.
Proposed law retains present law but reduces the amount of the credit from 25% to 18%.
Present law (R.S. 47:297(J)) provides an income tax credit for individual taxpayers for certain
educational expenses associated with attending college. The amount of the credit is equal to the least
of the tax due, or 100% of the educational expenses, or $750.
Proposed law retains present law but reduces the amount of the credit from the least of the tax due,
100% of the education expenses, or $750 to the least of the tax due, 72% of the education expenses,
or $540.
Present law (R.S. 47:297(L)) provides an income tax credit for qualified taxpayers for the purchase
of a bulletproof vest. Requires the qualified taxpayer to be a member of certain law enforcement.
The amount of the credit is the lesser of the full purchase price including applicable taxes paid by
the taxpayer or $100.
Proposed law retains present law but reduces the amount of the credit from the lesser of the full
purchase price including applicable taxes or $100 to 72% of the full purchase price including
applicable taxes or $72.
Present law (R.S. 47:297(M)) provides for an income tax credit against individual income tax for
amounts paid as premiums for eligible long-term care insurance. The amount of the credit is equal
to 10% of the total amount of premiums paid annually.
Proposed law retains present law but reduces the amount of the credit from 10% of the total amount
of premiums to 7%. Present law (R.S. 47:297(N)) provides for an income tax credit against individual income tax equal
to certain amounts incurred by a taxpayer for the taxpayer's expenses because of a living organ
donation by the taxpayer or taxpayer's spouse. The maximum amount of the credit allowed is
$10,000.
Proposed law retains present law but reduces the maximum amount of the credit from $10,000 to
$7,200.
Present law (R.S. 47:297(P)) provides for an income tax credit against individual income tax for
inclusion of certain accessible and barrier-free design elements in the construction of a new one- or
two- family dwelling. The amount of the credit is the lesser of $1,000 or the total tax liability of the
taxpayer.
Proposed law retains present law but reduces the amount of the credit from the lesser of $1,000 or
the total tax liability of the taxpayer to $720 or 72% of the total tax liability of the taxpayer.
Present law (R.S. 47:297.6) provides for an income tax credit for individual income tax 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 certain specific locations. The amount
of the credit is equal to 25% of the eligible costs and expenses of a rehabilitation. The maximum
credit allowed is $25,000. Present law further authorizes a credit of 50% of the eligible costs and
expenses of a rehabilitation of a vacant and blighted owner-occupied residential structure that is at
least 50 years old. Present law provides an annual program cap of $10 million.
Proposed law retains present law but reduces the credit amount from 25% to 18% of eligible costs
and expenses and reduces the credit amount from 50% to 36% of eligible costs and expenses for the
rehabilitation of the qualified vacant and blighted residential structures. Further reduces the
maximum credit allowed from $25,000 to $18,500 and reduces the program cap from $10 million
to $7.2 million.
Present law (R.S. 47:297.9) provides for an individual income tax credit for the amount paid by an
active or reserve military service member for a La. noncommercial hunting or fishing license.
Proposed law retains present law but reduces the amount of the credit from 100% of the amount of
the license to 72%.
Present law (R.S. 47:6004) provides for an income and corporation franchise tax credit for the
employment of each person and participant of Family Independence Work Program in a newly
created full-time job. The amount of the credit is $750 and is allowed for the taxable period during
which the new employee has completed one year of full-time service with the taxpayer or against the
corporation franchise tax for the taxable period following the taxable period during which the new
employee has completed one year of full-time service with the taxpayer.
Proposed law retains present law but reduces the amount of the credit from $750 to $540. Present law (R.S. 47:6005) provides an income tax or corporation franchise tax credit for taxpayers
who purchase qualified new recycling manufacturing or process equipment or qualified service
contracts to be used or performed exclusively in the state. The amount of the credit is 20% of the
cost of the equipment or service contract less the amount of any other tax credit received for the
purchase of the equipment or contract. Further provides an annual program cap of $5 million.
Proposed law retains present law but reduces the amount of the credit from 20% to 14.4% and
reduces the annual program cap from $5 million to $3.6 million.
Present law (R.S. 47:6008) provides for an income or corporation franchise tax credit for qualified
donations made to qualified playgrounds. The amount of the credit is equal to the lesser of $1,000
or one-half of the value of the cash, equipment, goods, or services donated.
Proposed law retains present law but reduces the amount of the credit from the lesser of $1,000 or
50% of the value of the cash, equipment, goods, or services donated to the lesser of $720 or 36% of
the value of the cash, equipment, goods, or services donated.
Present law (R.S. 47:6009) provides for an income or corporation franchise tax credit for a La.
business or industry that supports and encourages employee basic skills training by satisfying criteria
established in present law and that submit proper and complete applications. The amount of the
credit is $250 per participating employee, with the total of all basic skills training credits not to
exceed $30,000 for any single business or industry enterprise in a particular tax year.
Proposed law retains present law but reduces the amount of the credit from $250 per participating
employee to $180 and reduces the total maximum amount of all basic skills training credits from
$30,000 to $21,600 for any single business or industry in a particular tax year.
Present law (R.S. 47:6012) provides for an income and corporation franchise tax credit for employers
within the state to donate materials, equipment, or instructors to public training providers registered
with the La. Workforce Commission, or community colleges to assist in the development of training
programs designed to meet industry needs. The amount of the credit is equal to 50% of the value
of the donated materials, equipment, or services rendered by the instructor.
Proposed law retains present law but reduces the amount of the credit from 50% of the value of the
donated materials, equipment, or services rendered by the instructor to 36%.
Present law (R.S. 47:6013) provides for a corporate income and corporation franchise tax credit for
qualified donations made to a public school. The amount of the credit is equal to 40% of the
appraised value of the qualified donation.
Proposed law retains present law but reduces the amount of the credit from 40% of the appraised
value of the qualified donation to 28.8%.
Present law (R.S. 47:6017) provides for an income or corporation franchise tax credit for the filing
fee paid to the La. State Bond Commission. The amount of the credit is equal to the amount of the filing fee paid.
Proposed law retains present law but reduces the amount of the credit from 100% of the amount of
the filing fee to 72%.
Present law (R.S. 47:6020) provides for an income tax credit for qualifying individual or entities that
invest in a La. Entrepreneurial Business. The credit is equal to 35% of the qualified investment and
the total amount of tax credits granted in any calendar tax year by the department shall not exceed
$5 million. Present law further limits qualifying investments by an investor to those that do not
exceed $1 million per year per business and to $2 million total per business.
Proposed law retains present law but reduces the amount of the credit from 35% of the qualified
investment to 25.2% and reduces the total amount of tax credits that may be granted from $5 million
to $3.6 million in any calendar tax year. Proposed law further reduces the maximum qualifying
investment by an investor from $1 million to $720,000 and the maximum investment per business
from $2 million to $1.44 million.
Present law (R.S. 47:6022) provides for an income or franchise tax credit for La. taxpayers for
investment in state-certified productions for digital interactive media earned at the time expenditures
are made on a state-certified production. The amount of the credit is equal to 25% of the base
investment made by the investor. Additionally provides for a credit equal to 10% of base investment
expended on payroll for La. residents employed in connection with a state-certified production.
Proposed law retains present law but reduces the amount of the credit from 25% of the base
investment to 18% of the base investment and from 10% of the base investment expended on payroll
for La. residents to 7.2% of the base investment expended on payroll for La. residents.
Present law (R.S. 47:6023) provides for an income or franchise tax credit for La. taxpayers for
investment in state-certified productions for sound recordings earned at the time expenditures are
made on a state-certified production. The amount of the credit is equal to 25% of the base
investment made by the investor in excess of $15,000, or in excess of $5,000 for investors who are
La. residents. Additionally provides for a credit equal to 10% of base investment expended on
payroll for La. residents employed in connection with a state-certified production. Present law
provides an annual program cap of $3 million.
Proposed law retains present law for state-certified productions that are certified prior to July 1,
2015, but reduces the amount of the credit from 25% of the base investment to 18% of the base
investment and reduces the annual program cap from $3 million to $2.16 million for state-certified
productions that are certified on or after July 1, 2015.
Present law (R.S. 47:6025) provides an income tax credit against La. income tax for the amount of
surcharges, market equalization charges, or assessments paid by a taxpayer for the La. Citizens
Property Insurance Corporation assessments due to Hurricanes Katrina and Rita.
Proposed law retains present law but reduces the amount of the credit from the full amount of surcharges, market equalization charges, or assessments to 72% of the amount of surcharges, market
equalization charges, or assessment.
Present law (R.S. 47:6026) provides for an income or corporation franchise tax credit for certain
heritage-based cottage industries located or to be located in the Cane River Heritage Area
Development Zone. The credit is equal to an amount up to $1,500 per contract award and an
additional $1,500 credit for each new employee hired during the taxable year for which the credit
is claimed.
Proposed law retains present law but reduces the amount of the credit from $1,500 per contract
award to $1,080 and reduces the amount of the credit for each new employee hired from $1,500 to
$1,080.
Present law (R.S. 47:6032) provides for a refundable income and corporation franchise tax credit for
a resident taxpayer engaged in the business of producing milk for sale. The amount of the credit is
based on the production and sale of milk below the announced production price over a calendar year
in accordance with a schedule provided in present law. Present law caps the total aggregate amount
of credits for all producers at $2.5 million per calendar year and limits the credit allowed for each
producer at varying amounts.
Proposed law retains present law but reduces the total aggregate amount of credits for all producers
from $2.5 million per calendar year to $2 million per calendar year. Further reduces the credits
allowed for each producer as follows:
(1)From $5,000 to $3,600 tax credit for up to 1 million pounds of milk produced.
(2)From $10,000 to $7,200 tax credit for 1,000,001 to 1.5 million pounds of milk produced.
(3)From $15,000 to $10,800 tax credit for 1,500,001 to 2 million pounds of milk produced.
(4)From $20,000 to $14,400 tax credit for 2,000,001 to 2.5 million pounds of milk produced.
(5)From $25,000 to $18,000 tax credit for 2,500,001 to 3 million pounds of milk produced.
(6)From $30,000 to $21,600 tax credit for greater than 3 million pounds of milk produced.
Present law (R.S. 47:6034) provides for an individual or corporate income tax credit for qualified
production expenditures on investments in a state-certified musical or theatrical production or
infrastructure project. For state-certified higher education musical or theatrical infrastructure
projects that receive initial certification prior to January 1, 2018, a base investment credit may be
earned for expenditures made in the state on or before January 1, 2022 for the construction, repair,
or renovation of a new state-certified higher education musical or theatrical facility infrastructure
project. No more than $10 million in tax credits are allowed per project and no more than $60
million is allowed for all state-certified higher education musical or theatrical infrastructure projects.
The credit for an investor is granted in varying amounts. Proposed law retains present law for projects that receive an initial certification prior to July 1, 2015.
For projects that receive an initial certification on or after July 1, 2015, and on or before Jan. 1, 2018,
proposed law reduces the per project cap from $10 million to $7.2 million and the program cap from
$60 million to $43.2 million. Further reduces the credit amount for investors as follows:
(1)From 10% to 7.2% of the investor's base investment if the total base investment is greater
than $100,000 and less than or equal to $300,000.
(2)From 20% to 14.4% of the investor's base investment if the total base investment is greater
than $300,000 and less than or equal to $1 million.
(3)From 25% to 18% of the investor's base investment if the total base investment is greater
than $1 million.
Present law (R.S. 47:6035) provides for an income tax credit for qualified clean-burning motor
vehicle fuel property purchased and installed on certain motor vehicles. The amount of the credit is
equal to 50% of the cost of the qualified clean-burning motor vehicle fuel property.
Proposed law retains present law but reduces the amount of the credit from 50% to 36%.
Present law (R.S. 47:6036) provides for an income and corporate franchise tax credit for the total
capital costs of a project sponsored or undertaken by a public port and investing companies that have
a capital cost of at least $5 million dollars and at which the predominant trade or business activity
conducted will constitute industrial, warehousing, or port and harbor operations and cargo handling,
including any port or port and harbor activity. The amount of the investor tax credit is equal to the
total amount of capital costs of the project which shall be taken at 5% per tax year. The amount of
the import-export cargo tax credit is equal to the product of multiplying $5 by the taxpayer's number
of tons of qualified cargo for the taxable year that exceeds the precertification tonnage.
Proposed law retains present law but reduces the amount of the investor tax credit from the total
amount of capital costs of the project to 72% of the amount of capital costs of the project. Further
reduces the amount of the import-export cargo tax credit from $5 multiplied by the taxpayer's
number of tons of qualified cargo to $3.60 multiplied by the taxpayer's number of tons of qualified
cargo.
Present law (R.S. 47:6037) provides an individual income or corporate income tax credit for
approved expenditures in the state for the construction, repair, or renovation of a state-certified green
project. Present law further provides a $1 million per project cap and a $5 million annual program
cap. The amount of the credit allowed varies.
Present law provides for an additional tax credit of 10% of the base investment expended on payroll
for La. residents employed in connection with the construction of a state-certified green project. The
additional 10% tax credit for payroll for La. residents does not apply to that amount in excess of $1
million in payroll made to a single La. resident. Further allows an additional 1% of the base investment expended on payroll for La. residents who are graduates of certain La. programs.
Proposed law retains present law but reduces the amount of the credit as follows:
(1)From 10% to 7.2% of the investor's base investment if the total base investment is greater
than $100,000 and less than or equal to $300,000.
(2)From 20% to 14.4% of the investor's base investment if the total base investment is greater
than $300,000 and less than or equal to $1 million.
(3)From 25% to 18% of the investor's base investment if the total base investment is greater
than $1million.
Proposed law further reduces the additional credit for payroll of La. residents from 10% to 7.2% and
reduces the additional credit for payroll for La. residents who are graduates from certain La.
programs from 1% to 0.72%.
Present law (R.S. 51:1807) provides for an income or franchise tax credit for businesses located in
an urban revitalization zone. The credit is equal to $5,000 per net new employee. The credit
received pursuant to present law is in lieu of any incentive received under the Enterprise Zone
Program.
Proposed law retains present law but reduces the amount of the credit from $5,000 per net new
employee to $3,600.
Present law (R.S. 51:2354) provides an income and corporation franchise tax credit for investments
by the taxpayer in commercialization costs for certain business locations. The amount of the credit
is equal to 40% of the amount of money invested. Further provides a credit for qualified new direct
jobs. The credit is equal to 5% multiplied by the gross payroll of the qualified new direct jobs.
Proposed law retains present law for applications approved prior to July 1, 2015, but reduces the
credit for commercialization costs for applications that receive approval on and after July 1, 2015
from 40% of the amount invested to 28.8% of the amount invested and reduces the amount of the
credit for qualified new direct jobs from 5% to 4.32% multiplied by the gross payroll of the qualified
new direct jobs.
Present law (R.S. 51:2399.3) provides for an income or corporation franchise tax credit for amounts
of qualified expenditures incurred by an employer for modernization. The amount of the credit is
equal to 5% of the amount of qualified expenditures. Further provides an annual program cap of $10
million.
Proposed law retains present law for credits approved prior to July 1, 2015, but reduces the amount
of the credit for credits approved on or after July 1, 2015 from 5% to 3.6% and reduces the annual
program cap from $10 million to $7.2 million. Proposed law sunsets the provisions of proposed law relative to reducing the amount of the tax
credits on June 30, 2018. Proposed law reinstates the provisions of present law on July 1, 2018 and
thereafter.
The provisions of proposed law relative to reducing the amount of the tax credits shall apply to
claims for credits on any return filed on or after July 1, 2015, but before June 30, 2018, regardless
of the taxable year to which the return relates.
The provisions of proposed law relative to reducing the amount of the tax credits shall not apply to
an amended return filed on or after July 1, 2015, but before June 30, 2018, relating to a credit
properly claimed on an original return filed prior to July 1, 2015.
If a return is filed after July 1, 2015, but before June 30, 2018, for which a valid filing extension has
been allowed prior to July 1, 2015, then any portion of the credit reduced by the provisions of
proposed law relative to reducing the amount of the tax credits shall be allowed as a credit in the
amount of one-third of the reduced portion of the credit on the taxpayer's return for each of the
taxable years beginning during calendar years 2017, 2018, and 2019.
The provisions of proposed law relative to reducing the amount of the tax credits shall become
effective on July 1, 2015 and shall remain effective through June 30, 2018. The remaining
provisions of proposed law shall become effective on July 1, 2018 and shall apply to original returns
filed on or after July 1, 2018.
(Amends R.S. 25:1226.4(C)(1) and (2), R.S. 47:34(B)(1), 35(C), 37(C), 227, 265, 287.664,
287.748(B)(1), 287.749(B), 287.752(B)(1), 287.753(C), 287.755(C), 287.758(B), 287.759(A) and
(C)(3), 297(A), (B), (C)(1), (D)(2), (F), (G)(2), (H)(1), (I)(2), (J)(4), (K)(2)(a), (L)(3), (M)(1), (N)(1)
and (2), and (P)(2), 297.6(A)(1) and (5), 297.9(A), 6004(A)(2), the heading of 6005, 6005(C)(1) and
(D)(1), 6008(A), 6009(D)(1), 6012(B), 6013(A), 6017(A), 6018(C), 6020(D)(1) and (2)(a),
6022(D)(2)(intro. para.), 6023(C)(1) and (3)(intro. para.), 6025(A)(1), 6026(D)(2) and (3), 6032(C)
and (F), 6034(C)(1)(a)(ii)(bb), (C)(1)(a)(iii), (C)(1)(c), and (d), 6036(C)(1)(b) and (I)(2)(a)(i),
6035(C)(1) and (D), and 6037(B)(1) and (2)(b), (c), and (d) and R.S. 51:1807(C), 2354(A) and (B),
2399.3(A)(2)(a) and (b), and 3085(B)(1)(a); Adds R.S. 47:6022(D)(3))