HLS 15RS-1180 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 725
BY REPRESENTATIVE LEGER
TAX CREDITS: Increases the qualified equity investment authority for the La. New
Markets Jobs Act tax credits
1 AN ACT
2To amend and reenact R.S. 47:6016.1(B)(1) and (E)(5); relative to insurance premium tax;
3 to provide for the Louisiana New Markets Jobs Act tax credits; to provide for
4 definitions, to provide for applicable percentage; to provide with respect to issuance
5 date; to provide with respect to amounts available for certification and allocation, to
6 provide for an effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6016.1(B)(1) and (E)(5) are hereby amended and reenacted to read
9as follows:
10 ยง6016.1. Louisiana New Markets Jobs Act; premium tax credit
11 * * *
12 B. As used in this Section, the following words, terms, and phrases have the
13 meaning ascribed to them unless a different meaning is clearly indicated by the
14 context:
15 (1) "Applicable percentage" means: fourteen percent for the first and second
16 credit allowance dates and eight and one-half percent for the third and fourth credit
17 allowance dates.
18 (a) With respect to qualified equity investments issued after August 1, 2013
19 but prior to January 1, 2015, fourteen percent for the first and second credit
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HB NO. 725
1 allowance dates and eight and one-half percent for the third and fourth credit
2 allowance dates.
3 (b) With respect to qualified investments issued on or after January 1, 2015,
4 zero percent for the first through third credit allowance dates and fifteen percent for
5 the fourth through sixth credit allowance dates.
6 * * *
7 E.
8 * * *
9 (5)(a) A total of fifty-five Fifty-five million dollars of qualified equity
10 investment authority shall be available for certification and allocation for
11 investments before August 1, 2015. The department shall accept applications
12 beginning on August 1, 2013, for allocation and certification of up to fifty-five
13 million dollars of qualified equity investments.
14 (b) On August 1, 2015, and thereafter, an additional one hundred million
15 dollars of qualified equity investment authority, for a total of one hundred fifty-five
16 million dollars, shall be available for certification and allocation. The department
17 shall accept applications beginning on August 1, 2015, for allocation and
18 certification of the additional one hundred million dollars of qualified equity
19 investments.
20 (c) If a pending request cannot be fully certified due to these limits of
21 qualified equity investment authority, the department shall certify the portion of
22 qualified equity investment authority that may be certified unless the qualified
23 community development entity elects to withdraw its request rather than receive
24 partial certification.
25 * * *
26 Section 2. The provisions of this Act shall be applicable to taxable periods beginning
27on or after January 1, 2016.
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HB NO. 725
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 725 Original 2015 Regular Session Leger
Abstract: Increases the total aggregate amount of tax credits allocated under the La. New
Markets Jobs Act to $155 Million, and specifies certain percentages for investments
issued beginning Jan. 1, 2016.
Present law establishes the La. New Markets Jobs Act for purposes of a tax credit which may
be claimed against insurance premium tax. Eligibility for the credit is based on the
investment of private capital in a low-income community business located in La. The
amount of the tax credit shall be the product of multiplying the amount of the investment
purchase price (investment authority) by the following percentages: 14% for the 1
st
and 2
nd
credit allowance dates and 8.5% for the 3
rd
and 4
th
credit allowance dates.
Proposed law specifies those percentages with respect to qualified equity investments issued
after Aug. 1, 2013, but prior to Jan. 1, 2015; and specifies that with respect to qualified
equity investments issued Jan. 1, 2015, and thereafter, 0% for the 1
st
through 3
rd
credit
allowance dates and 15% for the 4
th
and 6
th
credit allowance dates.
Present law authorizes a total of $55 Million of qualified equity investment authority for
certification and allocation for the purpose of earning tax credits.
Proposed law retains present law but increases the authority available for certification and
allocation for investments before Aug. 1, 2015 by $100M. Further provides that the dept.
shall accept applications beginning Aug. 1, 2015, for allocation and certification of the
additional $100 Million of qualified equity investments.
Applicable for all tax periods beginning on and after Jan. 1, 2016.
(Amends R.S. 47:6016.1(B)(1) and (E)(5))
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