HLS 15RS-1222 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 749
BY REPRESENTATIVE BURRELL
TAX CREDITS: Requires the review of tax credits
1 AN ACT
2To amend and reenact R.S. 47:6105, to enact R.S. 47:6004(C), 6005(G), 6006(E),
3 6006.1(G), 6007(G), 6008(D), 6009(F), 6012(F), 6013(D), 6014(F), 6015(K),
4 6016.1(N), 6017(C), 6018(F), 6022(L), 6023(I), 6025(D), 6026(G), 6030(H),
5 6032(H), 6034(K), 6035(H), 6036(K), 6037(I), 6104(D), 6106(E), and 6107(C), and
6 to repeal R.S. 47:6005(D)(2), 6010, 6028, 6029, and 6033, relative to tax credits; to
7 require certain reviews and reports relative to tax credits; to terminate certain 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. 47:6105 is hereby amended and reenacted and R.S. 47:6004(C),
116005(G), 6006(E), 6006.1(G), 6007(G), 6008(D), 6009(F), 6012(F), 6013(D), 6014(F),
126015(K), 6016.1(N), 6017(C), 6018(F), 6022(L), 6023(I), 6025(D), 6026(G), 6030(H),
136032(H), 6034(K), 6035(H), 6036(K), 6037(I), 6104(D), 6106(E), and 6107(C) are hereby
14enacted to read as follows:
15 §6004. Employer credit
16 * * *
17 C. No later than September 1, 2015, the House Committee on Ways and
18 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
19 credit authorized pursuant to the provisions of this Section to determine if the
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1 economic benefit provided by such credit outweighs the loss of revenue realized by
2 the state as a result of awarding such credit. The House and Senate committees shall
3 make a specific recommendation no later than March 1, 2017, to either continue the
4 credit or to terminate the credit.
5 §6005. Qualified new recycling manufacturing or process equipment and/or service
6 contracts
7 * * *
8 G. No later than September 1, 2015, the House Committee on Ways and
9 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
10 credit authorized pursuant to the provisions of this Section to determine if the
11 economic benefit provided by such credit outweighs the loss of revenue realized by
12 the state as a result of awarding such credit. The House and Senate committees shall
13 make a specific recommendation no later than March 1, 2017, to either continue the
14 credit or to terminate the credit.
15 §6006. Tax credits for local inventory taxes paid
16 * * *
17 E. No later than September 1, 2015, the House Committee on Ways and
18 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
19 credit authorized pursuant to the provisions of this Section to determine if the
20 economic benefit provided by such credit outweighs the loss of revenue realized by
21 the state as a result of awarding such credit. The House and Senate committees shall
22 make a specific recommendation no later than March 1, 2017, to either continue the
23 credit or to terminate the credit.
24 §6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental
25 Shelf Lands Act Waters
26 * * *
27 G. No later than September 1, 2015, the House Committee on Ways and
28 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
29 credit authorized pursuant to the provisions of this Section to determine if the
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1 economic benefit provided by such credit outweighs the loss of revenue realized by
2 the state as a result of awarding such credit. The House and Senate committees shall
3 make a specific recommendation no later than March 1, 2017, to either continue the
4 credit or to terminate the credit.
5 §6007. Motion picture investor tax credit
6 * * *
7 G. No later than September 1, 2015, the House Committee on Ways and
8 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
9 credit authorized pursuant to the provisions of this Section to determine if the
10 economic benefit provided by such credit outweigh the loss of revenue realized by
11 the state as a result of awarding such credit. The House and Senate committees shall
12 make a specific recommendation no later than March 1, 2017, to either continue the
13 credit or to terminate the credit.
14 §6008. Tax credits for donations made to assist playgrounds in economically
15 depressed areas
16 * * *
17 D. No later than September 1, 2015, the House Committee on Ways and
18 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
19 credit authorized pursuant to the provisions of this Section to determine if the
20 economic benefit provided by such credit outweighs the loss of revenue realized by
21 the state as a result of awarding such credit. The House and Senate committees shall
22 make a specific recommendation no later than March 1, 2017, to either continue the
23 credit or to terminate the credit.
24 §6009. Louisiana Basic Skills Training Tax Credit
25 * * *
26 F. No later than September 1, 2015, the House Committee on Ways and
27 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
28 credit authorized pursuant to the provisions of this Section to determine if the
29 economic benefit provided by such credit outweighs the loss of revenue realized by
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1 the state as a result of awarding such credit. The House and Senate committees shall
2 make a specific recommendation no later than March 1, 2017, to either continue the
3 credit or to terminate the credit.
4 * * *
5 §6012. Employer tax credits for donations of materials, equipment, advisors, or
6 instructors
7 * * *
8 F. No later than September 1, 2015, the House Committee on Ways and
9 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
10 credit authorized pursuant to the provisions of this Section to determine if the
11 economic benefit provided by such credit outweighs the loss of revenue realized by
12 the state as a result of awarding such credit. The House and Senate committees shall
13 make a specific recommendation no later than March 1, 2017, to either continue the
14 credit or to terminate the credit.
15 §6013. Tax credits for donations made to public schools
16 * * *
17 D. No later than September 1, 2015, the House Committee on Ways and
18 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
19 credit authorized pursuant to the provisions of this Section to determine if the
20 economic benefit provided by such credit outweighs the loss of revenue realized by
21 the state as a result of awarding such credit. The House and Senate committees shall
22 make a specific recommendation no later than March 1, 2017, to either continue the
23 credit or to terminate the credit.
24 §6014. Credit for property taxes paid by certain telephone companies; fund
25 * * *
26 F. No later than September 1, 2015, the House Committee on Ways and
27 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
28 credit authorized pursuant to the provisions of this Section to determine if the
29 economic benefit provided by such credit outweighs the loss of revenue realized by
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1 the state as a result of awarding such credit. The House and Senate committees shall
2 make a specific recommendation no later than March 1, 2017, to either continue the
3 credit or to terminate the credit.
4 §6015. Research and development tax credit
5 * * *
6 K. No later than September 1, 2015, the House Committee on Ways and
7 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
8 credit authorized pursuant to the provisions of this Section to determine if the
9 economic benefit provided by such credit outweighs the loss of revenue realized by
10 the state as a result of awarding such credit. The House and Senate committees shall
11 make a specific recommendation no later than March 1, 2017, to either continue the
12 credit or to terminate the credit.
13 * * *
14 §6016.1 Louisiana New Markets Jobs Act; premium tax credit
15 * * *
16 N. No later than September 1, 2015, the House Committee on Ways and
17 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
18 credit authorized pursuant to the provisions of this Section to determine if the
19 economic benefit provided by such credit outweighs the loss of revenue realized by
20 the state as a result of awarding such credit. The House and Senate committees shall
21 make a specific recommendation no later than March 1, 2017, to either continue the
22 credit or to terminate the credit.
23 §6017. Tax credits for certain expenses paid by economic development corporations
24 * * *
25 C. No later than September 1, 2015, the House Committee on Ways and
26 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
27 credit authorized pursuant to the provisions of this Section to determine if the
28 economic benefit provided by such credit outweighs the loss of revenue realized by
29 the state as a result of awarding such credit. The House and Senate committees shall
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1 make a specific recommendation no later than March 1, 2017, to either continue the
2 credit or to terminate the credit.
3 §6018. Tax credits for purchasers from "PIE contractors"
4 * * *
5 F. No later than September 1, 2015, the House Committee on Ways and
6 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
7 credit authorized pursuant to the provisions of this Section to determine if the
8 economic benefit provided by such credit outweighs the loss of revenue realized by
9 the state as a result of awarding such credit. The House and Senate committees shall
10 make a specific recommendation no later than March 1, 2017, to either continue the
11 credit or to terminate the credit.
12 * * *
13 §6022. Digital interactive media and software tax credit
14 * * *
15 L. No later than September 1, 2015, the House Committee on Ways and
16 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
17 credit authorized pursuant to the provisions of this Section to determine if the
18 economic benefit provided by such credit outweigh the loss of revenue realized by
19 the state as a result of awarding such credit. The House and Senate committees shall
20 make a specific recommendation no later than March 1, 2017, to either continue the
21 credit or to terminate the credit.
22 §6023. Sound recording investor tax credit
23 * * *
24 I. No later than September 1, 2015, the House Committee on Ways and
25 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
26 credit authorized pursuant to the provisions of this Section to determine if the
27 economic benefit provided by such credit outweigh the loss of revenue realized by
28 the state as a result of awarding such credit. The House and Senate committees shall
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1 make a specific recommendation no later than March 1, 2017, to either continue the
2 credit or to terminate the credit.
3 * * *
4 §6025. Tax credit for Louisiana Citizens Property Insurance Corporation assessment
5 * * *
6 D. No later than September 1, 2015, the House Committee on Ways and
7 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
8 credit authorized pursuant to the provisions of this Section to determine if the
9 economic benefit provided by such credit outweighs the loss of revenue realized by
10 the state as a result of awarding such credit. The House and Senate committees shall
11 make a specific recommendation no later than March 1, 2017, to either continue the
12 credit or to terminate the credit.
13 §6026. Cane River heritage tax credit
14 * * *
15 G. No later than September 1, 2015, the House Committee on Ways and
16 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
17 credit authorized pursuant to the provisions of this Section to determine if the
18 economic benefit provided by such credit outweighs the loss of revenue realized by
19 the state as a result of awarding such credit. The House and Senate committees shall
20 make a specific recommendation no later than March 1, 2017, to either continue the
21 credit or to terminate the credit.
22 * * *
23 §6030. Solar energy systems tax credit
24 * * *
25 H. No later than September 1, 2015, the House Committee on Ways and
26 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
27 credit authorized pursuant to the provisions of this Section to determine if the
28 economic benefit provided by such credit outweighs the loss of revenue realized by
29 the state as a result of awarding such credit. The House and Senate committees shall
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1 make a specific recommendation no later than March 1, 2017, to either continue the
2 credit or to terminate the credit.
3 * * *
4 §6032. Tax credit for certain milk producers
5 * * *
6 H. No later than September 1, 2015, the House Committee on Ways and
7 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
8 credit authorized pursuant to the provisions of this Section to determine if the
9 economic benefit provided by such credit outweighs the loss of revenue realized by
10 the state as a result of awarding such credit. The House and Senate committees shall
11 make a specific recommendation no later than March 1, 2017, to either continue the
12 credit or to terminate the credit.
13 * * *
14 §6034. Musical and theatrical production income tax credit
15 * * *
16 K. No later than September 1, 2015, the House Committee on Ways and
17 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
18 credit authorized pursuant to the provisions of this Section to determine if the
19 economic benefit provided by such credit outweighs the loss of revenue realized by
20 the state as a result of awarding such credit. The House and Senate committees shall
21 make a specific recommendation no later than March 1, 2017, to either continue the
22 credit or to terminate the credit.
23 §6035. Tax credit for conversion of vehicles to alternative fuel usage
24 * * *
25 H. No later than September 1, 2015, the House Committee on Ways and
26 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
27 credit authorized pursuant to the provisions of this Section to determine if the
28 economic benefit provided by such credit outweighs the loss of revenue realized by
29 the state as a result of awarding such credit. The House and Senate committees shall
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1 make a specific recommendation no later than March 1, 2017, to either continue the
2 credit or to terminate the credit.
3 §6036. Ports of Louisiana tax credits
4 * * *
5 K. No later than September 1, 2015, the House Committee on Ways and
6 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
7 credit authorized pursuant to the provisions of this Section to determine if the
8 economic benefit provided by such credit outweigh the loss of revenue realized by
9 the state as a result of awarding such credit. The House and Senate committees shall
10 make a specific recommendation no later than March 1, 2017, to either continue the
11 credit or to terminate the credit.
12 §6037. Tax credit for "green job industries"
13 * * *
14 I. No later than September 1, 2015, the House Committee on Ways and
15 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
16 credit authorized pursuant to the provisions of this Section to determine if the
17 economic benefit provided by such credit outweigh the loss of revenue realized by
18 the state as a result of awarding such credit. The House and Senate committees shall
19 make a specific recommendation no later than March 1, 2017, to either continue the
20 credit or to terminate the credit.
21 * * *
22 §6104. Child care expense tax credit
23 * * *
24 D. No later than September 1, 2015, the House Committee on Ways and
25 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
26 credit authorized pursuant to the provisions of this Section to determine if the
27 economic benefit provided by such credit outweighs the loss of revenue realized by
28 the state as a result of awarding such credit. The House and Senate committees shall
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1 make a specific recommendation no later than March 1, 2017, to either continue the
2 credit or to terminate the credit.
3 §6105. Child care provider tax credit
4 A. There shall be a credit against any Louisiana individual or corporation
5 income tax or corporation franchise tax for a child care provider refundable as
6 provided for in R.S. 47:6108. The tax credit shall be an amount based upon the
7 average monthly number of children who either participate in the Child Care
8 Assistance Program administered by the office of children and family services in the
9 Department of Children and Family Services or who are foster children in the
10 custody of the Department of Children and Family Services, and who are attending
11 a child care facility or facilities operated by the child care provider, multiplied by an
12 amount which shall be based upon the quality rating of each child care facility
13 operated by the child care provider as follows:
14 Quality Rating of Child Care FacilityTax Credit Per Eligible Child Attending
15 Five star $1,500
16 Four star $1,250
17 Three star $1,000
18 Two star $750
19 One star or nonparticipating facility0
20 B. No later than September 1, 2015, the House Committee on Ways and
21 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
22 credit authorized pursuant to the provisions of this Section to determine if the
23 economic benefit provided by such credit outweighs the loss of revenue realized by
24 the state as a result of awarding such credit. The House and Senate committees shall
25 make a specific recommendation no later than March 1, 2017, to either continue the
26 credit or to terminate the credit.
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1 §6106. Credit for child care directors and staff
2 * * *
3 E. No later than September 1, 2015, the House Committee on Ways and
4 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
5 credit authorized pursuant to the provisions of this Section to determine if the
6 economic benefit provided by such credit outweighs the loss of revenue realized by
7 the state as a result of awarding such credit. The House and Senate committees shall
8 make a specific recommendation no later than March 1, 2017, to either continue the
9 credit or to terminate the credit.
10 §6107. Business-supported child care
11 * * *
12 C. No later than September 1, 2015, the House Committee on Ways and
13 Means and the Senate Committee on Revenue and Fiscal Affairs shall review the
14 credit authorized pursuant to the provisions of this Section to determine if the
15 economic benefit provided by such credit outweighs the loss of revenue realized by
16 the state as a result of awarding such credit. The House and Senate committees shall
17 make a specific recommendation no later than March 1, 2017, to either continue the
18 credit or to terminate the credit.
19 Section 2. R.S. 47:6005(D)(2), 6010, 6028, 6029, and 6033 are hereby repealed in
20their entirety.
21 Section 3. This Act shall become effective upon signature by the governor or, if not
22signed by the governor, upon expiration of the time for bills to become law without signature
23by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
24vetoed by the governor and subsequently approved by the legislature, this Act shall become
25effective on the day following such approval.
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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 749 Engrossed 2015 Regular Session Burrell
Abstract: Requires the House Ways and Means and Senate Revenue and Fiscal Affairs
committees to review certain tax credits beginning not later than Sept. 1, 2015, and
to make recommendations to either continue or terminate credits. Repeals certain
expired or inactive tax credits.
Present law provides for the following income and corporation franchise tax credits:
(1)R.S. 47:6004 Employer Credit
(2)R.S. 47:6005 Qualified new recycling manufacturing or process equipment and/or
service contracts
(3)R.S. 47:6006 Tax credits for local inventory taxes paid
(4)R.S. 47:6006.1 Tax credits for taxes paid with respect to vessels in Outer Continental
Shelf Lands Act Waters
(5)R.S. 47:6007 Motion picture investor tax credit
(6)R.S. 47:6008 Tax credits for donations made to assist playgrounds in economically
depressed areas
(7)R.S. 47:6009 Louisiana Basic Skills Training Tax Credit
(8)R.S. 47:6010 Employer tax credit for employee alcohol and substance abuse
treatment programs
(9)R.S. 47:6012 Employer tax credits for donations of materials, equipment, advisors,
or instructors
(10)R.S. 47:6013 Tax credits for donations made to public schools
(11)R.S. 47:6014 Credit for property taxes paid by certain telephone companies; fund
(12)R.S. 47:6015 Research and development tax credit
(13)R.S. 47:6016.1 Louisiana New Markets Jobs Act; premium tax credit
(14)R.S. 47:6017 Tax credits for certain expenses paid by economic development
corporations
(15)R.S. 47:6018 Tax credits for purchasers from "PIE contractors"
(16)R.S. 47:6022 Digital interactive media and software tax credit
(17)R.S. 47:6023 Sound recording investor tax credit
(18)R.S. 47:6025 Tax credit for Louisiana Citizens Property Insurance Corporation
assessment
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(19)R.S. 47:6026 Cane River heritage tax credit
(20)R.S. 47:6028 Tax credit for certain overpayments
(21)R.S. 47:6029 Tax credit for conversion or acquisition of trailers which haul
sugarcane
(22)R.S. 47:6030 Solar energy systems tax credit
(23)R.S. 47:6032 Tax credit for certain milk producers
(24)R.S. 47:6033 Apprenticeship tax credits
(25)R.S. 47:6034 Musical and theatrical production income tax credit
(26)R.S. 47:6035 Tax credit for conversion of vehicles to alternative fuel usage
(27)R.S. 47:6036 Ports of Louisiana tax credit
(28)R.S. 47:6037 Tax credit for "green job industries"
(29)R.S. 47:6104 Child care expense tax credit
(30)R.S. 47:6105 Child care provider tax credit
(31)R.S. 47:6106 Credit for child care directors and staff
(32)R.S. 47:6107 Business-supported child care
Proposed law requires the review of (1) through (7), (9) through (19), (22), (23), (25)
through (32), and repeals part of (2) and all of (8), (20), (21) and (24).
REVIEW OF TAX CREDITS IN PRESENT LAW
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.
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 $5M.
Present law (R.S. 47:6006) provides for an income or corporation franchise tax credit for ad
valorem taxes paid to political subdivisions on inventory held by manufacturers, distributors,
and retailers and on natural gas held, used, or consumed in providing natural gas storage
services or operating natural gas storage facilities. The amount of the credit is equal to
100% of the inventory taxes paid to the political subdivision.
Present law (R.S. 47:6006.1) provides for an income or corporation franchise tax credit for
ad valorem taxes paid without protest to political subdivisions on vessels in Outer
Continental Shelf Lands Act Waters as certified to the assessor within the calendar year
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immediately preceding the taxable year of assessment of such vessel. The amount of the
credit is equal to 100% of the ad valorem taxes paid to the political subdivision.
Present law (R.S. 47:6007) provides for an income tax credit for La. taxpayers for
investment in state-certified productions earned at the time expenditures are made by a
motion picture production company in a state-certified production. The amount of the credit
is equal to 30% of the base investment made by the investor if the total base investment is
more than $300,000. Additionally provides for a credit equal to 5% of base investment
expended on payroll for La. residents employed in connection with a state-certified
production. However, this credit does not apply to the payroll of any one person that
exceeds $1 million dollars.
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.
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.
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, secondary and postsecondary vocational-technical schools, apprenticeship
program 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.
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.
Present law (R.S. 47:6014) provides for an income and corporation franchise tax credit for
ad valorem taxes paid to political subdivisions by a telephone company for the company's
public service properties. The amount of the credit is equal to 40% of the aggregate ad
valorem taxes paid by the telephone company to the political subdivision.
Present law (R.S. 47:6015) provides for an income and corporation franchise tax credit for
taxpayers who employ persons in the state and claims a federal income tax credit for
increasing research activities. The credit is allowed at varying amounts.
Present law (R.S. 47:6016.1) provides for the La. New Markets Jobs Act for purposes of a
tax credit that may be claimed against insurance premium tax. Eligibility is based on the
investment of private capital in a low-income community business in La. The amount of the
credit is authorized in varying amounts.
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 incurred by an economic development
corporation in the preparation and issuance of bonds. The amount of the credit is equal to
the amount of the filing fee paid.
Present law (R.S. 47:6018) provides for an income or corporation franchise tax credit for
purchasers of specialty apparel items from businesses known as "PIE contractors" that utilize
inmate labor in producing items for sale and then pay 30% of the salary paid to such inmates
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back to the state. The amount of the credit is equal to the sales and use tax paid on the
purchase.
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.
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 $15K, or in excess of $5K 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 $3M.
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 levied due to Hurricane Katrina
and Rita.
Present law (R.S. 47:6026) provides a credit against income or corporation franchise taxes
for a heritage-based cottage industry located in the Cane River Heritage Area Development
Zone. The credit is provided in an amount up to $1,500.
Present law (R.S. 47:6030) provides for an income tax credit for the cost of purchase and
installation of a wind or solar energy system, or both, by a taxpayer at his La. residence, by
the owner of a residential rental apartment project, or by a taxpayer who purchases and
installs a system in a residence or a residential rental apartment project located in La.
Present law limits one credit per system. The amount of the credit is equal to 50% of the
first $25,000 of the cost of each wind energy system or solar energy system, including
installation costs, purchased and installed on or after Jan. 1, 2008.
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 $2.5M per
calendar year and limits the credit allowed for each producer at varying amounts.
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 $10M in tax credits are
allowed per project and no more than $60M is allowed for all state-certified higher education
musical or theatrical infrastructure projects. The credit for an investor is granted in varying
amounts.
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.
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HB NO. 749
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.
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 $1M per project cap and a $5M
annual program cap. The credit allowed is at varying amounts.
Present law (R.S. 47:3037) further 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 $1M 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.
Present law (R.S. 47:6104) provides for an individual income tax credit for child care
expenses based on the quality rating of the child care facility which the child attends. The
amount of the credit is a percentage of a credit provided for in present law and varies
depending on the quality rating of the child care facility.
Present law (R.S. 47:6105) provides for a refundable income or corporation franchise tax
credit for child care providers. The amount of the credit is equal to an amount based upon
the average monthly number of children who either participate in the Child Care Assistance
Program or who are foster children in the custody of the Department of Children and Family
Services, and who are attending a child care facility or facilities operated by the child care
provider, multiplied by an amount that is based upon the quality rating of each child care
facility operated by the child care.
Present law (R.S. 47:6106) provides for a refundable individual income tax credit for eligible
child care directors and eligible child care staff. The amount of the credit varies based upon
the qualifications of the provider.
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.
Proposed law requires the House Committee on Ways and Means to review the credits in
present law no later than September 1, 2015, and make a specific recommendation no later
than March 1, 2017, to either continue the credits or to terminate the credits.
REPEAL OF EXPIRED OR INACTIVE TAX CREDITS
Present law (R.S. 47:6005(D)(2)) provides for an income tax credit for taxpayers for the
purchase of qualified new recycling manufacturing or processing equipment. Further
provides a credit of 100% of the purchase price for steelworks and blast furnaces, including
coke ovens and rolling mills that are classified as SIC 312 by the Standard Industrial
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HB NO. 749
Classification Code. Limited application to claims made by the taxpayer prior to July 1,
2002.
Present law (R.S. 47:6010) provides an income tax credit for employers who provided
certain qualified alcohol or substance abuse treatment programs to their employees.
Present law (R.S. 47:6028) provides an income or corporation franchise tax credit for the
amount of any overpayment made by a taxpayer with gross receipts from business of
$500,000 or less as a result of failing to claim any inventory tax credit between tax years
1999 through 2002 for income taxes and 2000 through 2003 for corporation franchise taxes.
Present law (R.S. 47:6029) provides an income or corporation franchise tax for the purchase
of an eligible sugarcane trailer to replace an ineligible sugarcane trailer as provided for in
present law. The credit is allowed in varying amounts, but there is no credit allowed for
costs paid on or after Jan. 1, 2014.
Present law (R.S. 47:6033) provides an individual or corporation income tax or corporation
franchise tax credit for employers who employ an eligible apprentice as defined in present
law. The amount of the credit if equal to one dollar for each hour of employment of each
eligible apprentice and applies to taxable periods ending prior to Jan. 1, 2015.
Proposed law repeals present law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6105; Adds R.S. 47:6004(C), 6005(G), 6006(E), 6006.1(G), 6007(G),
6008(D), 6009(F), 6012(F), 6013(D), 6014(F), 6015(K), 6016.1(N), 6017(C), 6018(F),
6022(L), 6023(I), 6025(D), 6026(G), 6030(H), 6032(H), 6034(K), 6035(H), 6036(K),
6037(I), 6104(D), 6106(E), and 6107(C); Repeals R.S. 47:6005(D)(2), 6010, 6028, 6029,
and 6033)
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