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))