HLS 15RS-1266 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 723
BY REPRESENTATIVE BURRELL
TAX CREDITS: Reduces certain income and corporation franchise tax credits
1 AN ACT
2To amend and reenact R.S. 287.759(A) and (C)(3), 297(A), (B), (C)(1), (D)(2), (F), (G)(2),
3 (H)(1), (I)(2), (J)(4), (K)(2)(a)(introductory paragraph), (L)(3)(introductory
4 paragraph), (M)(1), (N)(1)(introductory paragraph) and (2), and (P)(2), 297.2,
5 297.4(A)(1)(a)(ii), (2), (3), and (4), 297.6(A)(1) and (5), and 6107(A) and R.S.
6 51:1787(A)(1)(b) and (2) and 1807(C) and to enact R.S. 47:297.4(A)(1)(a)(iii),
7 relative to income and corporate franchise tax credits; to reduce the amount of tax
8 credits; to provide for an effective date; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 287.759(A) and (C)(3), 297(A), (B), (C)(1), (D)(2), (F), (G)(2),
11(H)(1), (I)(2), (J)(4), (K)(2)(a)(introductory paragraph), (L)(3)(introductory paragraph),
12(M)(1), (N)(1)(introductory paragraph) and (2), and (P)(2), 297.2, 297.4(A)(1)(a)(ii), (2), (3),
13and (4), 297.6(A)(1) and (5), and 6107(A) are hereby amended and reenacted and R.S.
1447:297.4(A)(1)(a)(iii) is hereby enacted to read as follows:
15 §287.759. Tax credit for employee and dependent health insurance coverage
16 A. When any contractor or subcontractor in the letting of any contract for the
17 construction of a public work offers health insurance coverage as provided for in this
18 Section, they shall be eligible for a five four percent income tax credit on forty
19 percent of the amount of the contract received in a tax year if eighty-five percent of
20 the full-time employees of each contractor are offered health insurance coverage and
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1 each such general contractor or subcontractor pays seventy-five percent of the total
2 premium for such health insurance coverage for each full-time employee who
3 chooses to participate and pays not less than fifty percent of the total premium for
4 health insurance coverage for each dependent of the full-time employee who elects
5 to participate in dependent coverage.
6 * * *
7 C.
8 * * *
9 (3) The credit shall not exceed three million two million four hundred
10 thousand dollars per year.
11 * * *
12 §297. Reduction to tax due
13 A. The tax determined as provided in this Part shall be reduced by one
14 hundred eighty dollars for any taxpayer, taxpayer's spouse, or dependent who is deaf,
15 blind, mentally incapacitated, or has lost the use of one or more limbs. Only one
16 credit is allowed for any one person.
17 B. The tax determined as provided in this Part shall be reduced by the
18 following: a credit for the elderly, a credit for contributions to candidates for public
19 office, an investment credit, a credit for foreign tax, a work incentive credit, jobs
20 credit, and residential energy credits. The amount of these credits shall be the lesser
21 of twenty-five twenty dollars or ten eight percent of the same credits allowed on the
22 federal income tax return for the same taxable period.
23 C.(1) There shall be allowed to an individual, as a credit against the tax
24 imposed by this Chapter for the taxable year, an amount equal to eighty percent of
25 the state gasoline and motor fuels taxes and special fuels taxes paid to operate or
26 propel a commercial fishing boat. The credit shall not be allowed for any such taxes
27 for which a refund has been claimed pursuant to the provisions of Part VIII of
28 Chapter 18 of this Subtitle.
29 * * *
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1 D. In addition to any other credits against the tax payable on net income
2 which the law allows to an individual taxpayer, the taxpayer shall be entitled to the
3 tax credit against the tax payable on net income provided for as follows:
4 * * *
5 (2) Any taxpayer who so qualifies shall be entitled to a maximum tax credit
6 of twenty-five twenty dollars per child for educational expenses.
7 * * *
8 F. There shall be allowed to an individual, as a credit against the tax imposed
9 by this Chapter for the taxable year, an amount equal to thirty-three and one-third
10 twenty-seven percent of the amount contributed in a family responsibility program
11 under the provisions of R.S. 46:449. The amount of this credit shall not exceed two
12 hundred one hundred sixty dollars per year.
13 G. There shall be an environmental equipment purchase tax credit to be
14 determined as follows:
15 * * *
16 (2) The tax credit shall be twenty sixteen percent of the purchase price of the
17 equipment if paid for in a single taxable year. If the equipment purchase is financed
18 over two or more taxable years, the tax credit in a taxable year shall be twenty
19 sixteen percent of that portion of the original purchase price paid in that taxable year.
20 For partnerships and Subchapter S Corporations, the tax credit shall proportionately
21 pass through to each partner or shareholder in the same percentage in which other
22 shares of income, gain, loss, deduction or credit are distributed in accordance with
23 the partnership or shareholder agreement.
24 * * *
25 H.(1) The tax determined as provided in this Part shall be reduced by the
26 lesser of the tax due or five thousand four thousand dollars per taxable year up to a
27 maximum of five years for each taxpayer meeting all of the following criteria.
28 * * *
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1 I. There shall be a bone marrow donor expense tax credit for any individual
2 taxpayer required to file a Louisiana tax return, acting as a business entity authorized
3 to do business in the state, operating as either a sole proprietorship, a partner in a
4 partnership, or as a Subchapter S Corporation, for bone marrow donor expense to be
5 determined as follows:
6 * * *
7 (2) A credit against the taxes otherwise due under this Part for the tax year
8 is allowed to an employer. The amount of the credit is equal to twenty-five twenty
9 percent of the bone marrow donor expense paid or incurred during the tax year by
10 an employer to provide a program for employees who are potential bone marrow
11 donors or who actually become bone marrow donors.
12 * * *
13 J.
14 * * *
15 (4) The amount of the credit per tax year is equal to the least of the tax due,
16 or one hundred eighty percent of the educational expenses, or seven hundred fifty six
17 hundred dollars.
18 K.
19 * * *
20 (2)(a) The credit shall be two hundred one hundred sixty dollars per taxable
21 year per eligible employee.
22 * * *
23 L.
24 * * *
25 (3) The total amount of the credit shall be the lesser of the full eighty percent
26 of the purchase price including applicable taxes paid by the taxpayer or one hundred
27 eighty dollars. In order to claim the tax credit provided in this Subsection, the
28 qualified taxpayer must submit a certification from his employer which that:
29 * * *
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1 M.(1) There shall be allowed a credit against the individual income tax for
2 amounts paid as premiums for eligible long-term care insurance. The amount of the
3 credit shall be equal to ten eight percent of the total amount of premiums paid
4 annually by each individual claiming the credit.
5 * * *
6 N.(1) There shall be allowed a credit against individual income tax due in
7 a taxable year equal to eighty percent of the following amounts incurred by a
8 taxpayer during his tax year if related to the taxpayer's travel or absence from work
9 because of a living organ donation by the taxpayer or the taxpayer's spouse:
10 * * *
11 (2) The credit provided for by this Section shall not exceed ten eight
12 thousand dollars per organ donation. It shall be allowed against the income tax for
13 the taxable period in which the credit is earned. If the tax credit exceeds the amount
14 of such taxes due, then any unused credit may be carried forward as a credit against
15 subsequent tax liability for a period not to exceed ten years.
16 * * *
17 P.
18 * * *
19 (2) The amount of the credit shall be one thousand eight hundred dollars, or
20 eighty percent of the total tax liability of the taxpayer, whichever is less. The credit
21 shall be taken in the taxable year in which the construction of the dwelling is
22 completed. Only one tax credit may be granted per dwelling.
23 * * *
24 §297.2. Reduction to tax due
25 A person who maintains a household which that includes one or more
26 dependents who are physically or mentally incapable of caring for themselves may
27 take as a credit against the state income tax imposed by this Part the full eighty
28 percent of the amount of a tax credit equal to the applicable percentage of
29 employment-related expenses allowable pursuant to Section 21 of the Internal
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1 Revenue Code. Any tax credit otherwise allowed under this Section which that is
2 not used by the taxpayer in a particular year may be carried forward and offset
3 against the taxpayer's tax liability for the next succeeding tax year.
4 * * *
5 §297.4. Reduction to tax due; certain child care expenses
6 A. There shall be a credit from the tax imposed by this Part for child care
7 expenses for which a resident individual is eligible pursuant to the federal income
8 tax credit provided by Internal Revenue Code Section 21 for the same taxable year.
9 The credit shall be calculated using the following percentages :
10 (1)(a) If the resident individual's federal adjusted gross income is equal to
11 or less than twenty-five thousand dollars, the credit shall be calculated based on the
12 federal tax credit before it is reduced by the amount of the individual's federal
13 income tax and be equal to the following amounts for the following tax years:
14 * * *
15 (ii) For tax years beginning after December 31, 2006, and before December
16 31, 2014, fifty percent of the unreduced federal credit.
17 (iii) For tax years beginning after December 31. 2015, forty percent of the
18 unreduced federal credit.
19 * * *
20 (2) If the resident individual's federal adjusted gross income is greater than
21 twenty-five thousand dollars and less than or equal to thirty-five thousand dollars,
22 the credit shall be equal to thirty twenty-four percent of the federal credit for child
23 care expenses claimed on the resident individual's federal tax return.
24 (3) If the resident individual's federal adjusted gross income is greater than
25 thirty-five thousand and less than or equal to sixty thousand dollars, the credit shall
26 be equal to ten eight percent of the federal credit for child care expenses claimed on
27 the resident individual's federal tax return.
28 (4) If the resident individual's federal adjusted gross income is greater than
29 sixty thousand dollars, the credit shall be equal to the lesser of twenty-five twenty
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1 dollars or ten eight percent of the federal credit for child care expenses claimed on
2 the resident individual's federal tax return.
3 * * *
4 §297.6. Reduction to tax due; rehabilitation of residential structures
5 A.(1) There shall be a credit against individual income tax liability due under
6 this Title for the amount of eligible costs and expenses incurred during the
7 rehabilitation of an owner-occupied residential or owner-occupied mixed use
8 structure located in a National Register Historic District, a local historic district, a
9 Main Street District, a cultural products district, or a downtown development district,
10 or such owner-occupied residential structure which that has been listed or is eligible
11 for listing on the National Register, or such structure which that has been certified
12 by the State Historic Preservation Office as contributing to the historical significance
13 of the district, or a vacant and blighted owner-occupied residential structure located
14 anywhere in the state that is at least fifty years old. The tax credit authorized
15 pursuant to this Section shall be limited to one credit per structure rehabilitated. The
16 total credit shall not exceed twenty-five twenty thousand dollars per structure. In
17 order to qualify for that credit, the rehabilitation costs for the structure must exceed
18 ten thousand dollars.
19 (a) If the credit is for the rehabilitation of an owner-occupied residential
20 structure, the credit shall be twenty-five twenty percent of the eligible costs and
21 expenses of a rehabilitation for which an application for credit has been filed for the
22 first time after July 1, 2011. If the residential structure is owned and occupied by
23 two or more individuals, the applicable percentage shall be based on the sum of all
24 owner-occupants who contribute to the rehabilitation, and the credit will be divided
25 between the owner-occupants in proportion to their contribution to the eligible costs
26 and expenses.
27 (b) If the credit is for the rehabilitation of a vacant and blighted owner-
28 occupied residential structure that is at least fifty years old, the credit shall be fifty
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1 forty percent of the eligible costs and expenses of a rehabilitation for which an
2 application for credit has been filed for the first time after July 1, 2011.
3 * * *
4 (5) The maximum amount of tax credits allowed by the State Historic
5 Preservation Office to be granted in any calendar year shall not exceed ten eight
6 million dollars. The granting of credits under this Section shall be on a first-come,
7 first-served basis. If the total amount of credits applied for in any particular year
8 exceeds the aggregate amount of tax credits allowed for that year, the excess will be
9 treated as having been applied for on the first day of the subsequent year.
10 * * *
11 §6107. Business-supported child care
12 A.(1) There shall be a refundable credit against any Louisiana individual or
13 corporation income tax or corporation franchise tax for the eligible business child
14 care expenses supported by a business. The credit shall be the following percentages
15 of such eligible business child care expenses depending upon the quality rating of the
16 child care facility to which the expenses are related or the quality rating of the child
17 care facility the child attends:
18 Quality Rating of Child Care FacilityPercentage of eligible business
19 child care expenses
20 Five star 20% 16%
21 Four star 15% 12%
22 Three star 10% 8%
23 Two star 5% 4%
24 One star or nonparticipating facility 0
25 (2) There shall be an additional refundable credit against any Louisiana
26 individual or corporation income tax or corporation franchise tax for the payment by
27 a business of fees and grants to child care resource and referral agencies not to
28 exceed five thousand four thousand dollars per tax year.
29 * * *
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1 Section 2. R.S. 51:1787(A)(1)(b) and (2) and 1807(C) are hereby amended and
2reenacted to read as follows:
3 §1787. Incentives
4 A. The board, after consultation with the secretaries of the Department of
5 Economic Development and Department of Revenue, and with the approval of the
6 governor, may enter into contracts not to exceed five years to provide:
7 (1) For either:
8 * * *
9 (b) A refundable investment income tax credit equal to one and one-half
10 forty one hundredths percent of the amount of qualified expenditures. For purposes
11 of this Paragraph, the term "qualified expenditures" shall mean amounts classified
12 as capital expenditures for federal income tax purposes plus exclusions from
13 capitalization provided for in Internal Revenue Code Section 263(a)(1)(A) through
14 (L), minus the capitalized cost of land, capitalized leases of land, capitalized interest,
15 capitalized costs of manufacturing machinery and equipment to the extent the
16 capitalized manufacturing machinery and equipment costs are excluded from sales
17 and use tax pursuant to R.S. 47:301(3), and the capitalized cost for the purchase of
18 an existing building. When a taxpayer purchases an existing building and capital
19 expenditures are used to rehabilitate the building, the costs of the rehabilitation only
20 shall be considered qualified expenditures. Additionally, a taxpayer shall be allowed
21 to increase their qualified expenditures to the extent a taxpayer's capitalized basis is
22 properly reduced by claiming a federal credit. A taxpayer earns the investment tax
23 credit in the year in which the project is placed in service, but the taxpayer may not
24 claim the investment tax credit until the Department of Economic Development signs
25 the project completion report or such other time as provided for by rule or regulation.
26 The project completion report for the refundable investment tax credit shall adhere
27 to the same requirements found in Subparagraph (a) for the sales and use tax rebate.
28 (2)(a) Except as provided in Subparagraph (b) of this Paragraph, for a two
29 thousand five hundred two thousand dollar tax credit per net new employee as
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1 determined by the company's average annual employment reported under the
2 Louisiana Employment Security Law during the taxable year for which credit is
3 claimed. This tax credit may be applied to any state income tax liability or any state
4 corporate franchise tax liability, but not liabilities for penalty or interest, due or
5 outstanding at the time the credit is generated. However, credits may be applied to
6 a due or outstanding tax liability attributable to tax years prior to the year in which
7 the credit is generated only if the tax liability is the result of an assessment,
8 administrative, or judicial proceeding by the Department of Revenue after an audit,
9 provided that no further interest or penalty shall be accrued on such tax liability after
10 the credit is generated. If the entire credit cannot be used in the year claimed, the
11 remainder may be applied against the income tax or corporate franchise tax for the
12 succeeding ten taxable years or until the entire credit is used, whichever occurs first.
13 These credits shall also apply to those tax liabilities, but not liabilities for penalty or
14 interest, identified in tax years where existing contracts generate the credit.
15 (b) In lieu of the tax credit provided in Subparagraph (a) of this Paragraph,
16 for aviation or aerospace industries as defined in North American Industry
17 Classification System (NAICS) Code 336411, 336412, 336413, and 332912, for a
18 five thousand four thousand dollar tax credit for each new job created. This tax
19 credit may be applied to any state income tax liability or any state franchise tax
20 liability within a ten-year period from the date that the contract becomes effective
21 or until the entire credit is used, whichever occurs first.
22 (c) Until June 30, 2009, in lieu of the tax credit provided in Subparagraph
23 (a) of this Paragraph, for the motor vehicle parts manufacturing industry as defined
24 in the 3363 NAICS Code Title, for a five thousand four thousand dollar tax credit for
25 each new job created. This tax credit may be applied to any state income tax liability
26 or any state franchise tax liability within a ten-year period from the date that the
27 contract becomes effective or until the entire credit is used, whichever occurs first.
28 As used in this Subparagraph, the term "NAICS" means the North American
29 Industrial Classification System.
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1 (d) Until June 30, 2012, in lieu of the tax credit provided in Subparagraph
2 (a) of this Paragraph, for the rubber manufacturing industry as defined by NAICS
3 Code 326211, a five thousand four thousand dollar tax credit for each new job
4 created. This tax credit may be applied to any state income tax liability or any state
5 franchise tax liability within a ten-year period from the date that the contract
6 becomes effective or until the entire credit is used, whichever occurs first.
7 * * *
8 §1807. Incentives
9 * * *
10 C. The board, after consultation with the secretaries of the Department of
11 Economic Development and the Department of Revenue and with the approval of the
12 governor, may enter into contracts to provide for a five thousand four thousand dollar
13 tax credit per net new employee as determined by the company's average annual
14 employment reported under the Louisiana Employment Security Law. This tax
15 credit may be applied to any state income tax liability or any state franchise tax
16 liability and shall be used for the taxable year in which the increase in average
17 annual employment occurred. However, if the entire credit cannot be used in the
18 year earned, the excess of the credit over the aggregate tax liabilities against which
19 the credit can be applied shall constitute an overpayment, as defined in R.S.
20 47:1621(A), and the secretary shall make a refund of such overpayment from the
21 current collections of the taxes imposed by Chapter 1 and Chapter 5 of Subtitle II of
22 Title 47 of the Louisiana Revised Statutes of 1950, as amended. The right to a
23 refund of any such overpayment shall not be subject to the requirement of R.S.
24 47:1621(B).
25 * * *
26 Section 3. This Act shall become effective July 1, 2015.
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HB NO. 723
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 723 Original 2015 Regular Session Burrell
Abstract: Reduces the amount of certain income and corporation franchise tax credits by
20%.
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 $3M per year.
Proposed law retains present law but reduces the amount of the credit allowed from 5% to
4% and reduces the maximum credit amount from $3M to $2.4M.
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 $80.
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 $20 or 8% 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 80%.
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 $20.
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 27%
of the contribution and reduces the maximum credit from $200 to $160.
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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 16%.
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 5 years for each taxpayer meeting the criteria.
Proposed law retains present law but reduces the amount of the credit from $5,000 to $4,000
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 20%.
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, 80% of the
education expenses, or $600.
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 80% of the full purchase price
including applicable taxes or $80.
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 8%.
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 $8,000.
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
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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 $800 or 80% of the total tax liability of the
taxpayer.
Present law (R.S. 47:297.2) provides for an income tax credit for persons who maintain a
household that includes one or more dependents who are physically or mentally incapable
of caring for themselves. The amount of the credit is equal to the applicable percentage of
employment-related expenses allowable pursuant to Section 21 of the IRC.
Proposed law retains present law but reduces the amount of the credit from 100% of the
applicable percentage of the allowable employment-related expenses to 80% of the
applicable percentage of the allowable employment-related expenses.
Present law (R.S. 47:297.4) provides for an income tax credit for individual taxpayers for
certain child care expenses for which the individual is eligible for a federal income tax credit
for the same year. The credit is allowed at varying amounts.
Proposed law retains present law but reduces the amounts of the credits as follows:
(1)For taxpayers whose federal adjusted gross income is equal to or less than $25,000,
from 50% to 40% of the unreduced federal credit.
(2)For taxpayers whose federal adjusted gross income is greater than $25,000, but less
than or equal to $35,000, from 30% to 24% of the federal credit allowed.
(3)For taxpayers whose federal adjusted gross income is greater than $35,000, but less
than $60,000, from 10% to 8% of the federal credit allowed.
(4)For taxpayers whose federal adjusted gross income is greater than $60,000, from the
lesser of $25 or 10% to the lesser of $20 or 8% of the federal credit allowed.
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 of 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 $10M.
Proposed law retains present law but reduces the credit amount from 25% to 20% of eligible
costs and expenses and reduces the credit amount from 50% to 40% 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 $20,000 and reduces the
program cap from $10M to $8M.
Present law (R.S. 47:6107) provides for a refundable income tax or corporation franchise tax
credit for eligible business child care expenses supported by a business. The amount of the
credit shall be based on a percentage of eligible business child care expenses depending upon
the quality rating of the child care facility to which the expenses are related or the quality
rating of the child care facility the child attends. Present law provides for an additional
refundable income or corporation franchise tax for the payment by a business of fees and
grants to child care resource and referral agencies not to exceed $5,000 per tax year.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1266 ORIGINAL
HB NO. 723
Proposed law retains present law but reduces the maximum amount of the additional
refundable income or corporation franchise tax from $5,000 to $4,000. Further reduces the
amount of the credit as follows:
(1)From 20% of eligible business child care expenses to 16% for 5 star facilities.
(2)From 15% of eligible business child care expenses to 12% for 4 star facilities.
(3)From 10% of eligible business child care expenses to 8% for 3 star facilities.
(4)From 5% of eligible business child care expenses to 4% for 2 star facilities.
Present law (R.S. 51:1787) provides for a refundable investment income tax credit for state
income or corporate franchise tax liability for qualified expenditures made by a taxpayer in
the economic development of qualified enterprise zones. The amount of the credit is 1.5%
of the amount of the qualified expenditure. An additional credit of $2,500 is allowed for
each net new employee. A $5,000 credit for each new job created is allowed for certain
specific industries in lieu of this $2,500 credit.
Proposed law retains present law but reduces the amount of the credit for qualified
expenditures from 1.5% to 1.2% and reduces the amount of the additional credit for each net
new employee from $2,500 to $2,000. Further reduces the additional credits for specific
industries from $5,000 for each new job created to $4,000.
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 $4,000.
Effective July 1, 2015.
(Amends R.S. 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)(intro. para.), (L)(3)(intro. para.), (M)(1), (N)(1)(intro. para.) and (2), and
(P)(2), 297.2, 297.4(A)(1)(a)(ii), (2), (3), and (4), 297.6(A)(1) and (5), and 6107(A) and R.S.
51:1787(A)(1)(b) and (2) and 1807(C); Adds 47:297.4(A)(1)(a)(iii))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.