HLS 15RS-841 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 803
BY REPRESENTATIVE ADAMS
TAX CREDITS: Provides for the carry forward rather than the refund of the tax credits for
certain musical and theatrical productions and certain infrastructure projects
1 AN ACT
2To amend and reenact R.S. 47:6034(D)(1), relative to income tax credits; to provide with
3 respect to the tax credit for musical and theatrical productions and certain
4 infrastructure projects; to provide with respect to authorization for issuance of
5 refunds for tax credits which exceed taxpayer tax liability; to provide for certain
6 limitations; to provide for effectiveness; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6034(D)(1) is hereby amended and reenacted to read as follows:
9 ยง6034. Musical and theatrical production income tax credit
10 * * *
11 D.(1) The credit shall be allowed against individual or corporate income tax
12 of the companies or financiers of the production or infrastructure project in
13 accordance with their share of the credit as provided for in the application for
14 certification for the production or infrastructure project. A company or financier
15 may, on a one-time basis, transfer the credit or any refund of an overpayment to an
16 individual or other entity including without limitation a bank or other lender,
17 provided that the transfer shall not be effective until receipt by the Department of
18 Revenue of written notice of such transfer. Transferors and transferees shall submit
19 to the Department of Revenue, in writing, a notification of any transfer of the tax
20 credit within ten business days after the transfer. The credit shall be allowed for the
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-841 ORIGINAL
HB NO. 803
1 taxable period in which expenditures eligible for a credit are expended. Any excess
2 of the credit over the income tax liability against which the credit may be applied
3 shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary of
4 the Department of Revenue shall make a refund of such overpayment from the
5 current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as
6 amended. The right to a refund of any such overpayment shall not be subject to the
7 requirements of R.S. 47:1621(B). If the amount of the credit exceeds the amount of
8 tax liability for the tax year, then any unused credit may be carried forward as a
9 credit against subsequent income tax for a period not to exceed five years.
10 * * *
11 Section 2. The provisions of this Act shall be applicable to tax years beginning on
12or after January 1, 2015.
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 803 Original 2015 Regular Session Adams
Abstract: Changes the tax credit for certain expenditures on state-certified musical or
theatrical projects and certain state-certified infrastructure projects from a refundable
credit to a credit in which amounts of the credit above the tax liability may be carried
forward and applied against subsequent tax liability for up to five years.
Present law authorizes an income tax credit for the following:
(1)Certified and approved production expenditures for a state-certified musical or
theatrical production or for investments made by a company or financier expended
on the production.
(2)Certified and approved expenditures for state-certified infrastructure projects which
receive initial certification on or before Jan. 1, 2014, for expenditures made before
Jan. 1, 2015, for the construction, repair, or renovation of a state-certified musical
or theatrical facility infrastructure project or for investments made by a company or
financier expended on the project.
(3)Certain amounts expended to employ students enrolled in La. colleges and
universities in a state-certified musical or theatrical production in art-related
positions.
(4)Certain amounts expended on payroll to employ La. residents in connection with
state-certified musical or theatrical productions or state-certified musical or theatrical
facility infrastructure projects.
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-841 ORIGINAL
HB NO. 803
(5)Certified and approved expenditures which receive initial certification on or before
Jan. 1, 2018, for state-certified higher education musical or theatrical infrastructure
projects for expenditures made in the state on or before Jan. 1, 2022, for the
construction, repair, or renovation of a new state-certified higher education musical
or theatrical facility infrastructure project or for investments by a company or
financier expended on the project.
Present law provides for the amount of the credit, which depends on the amount of the base
investment, application, certification, and administration of the credit.
Proposed law retains present law.
Present law authorizes a company or financier, on a one-time basis, to transfer the credit or
the refund of an overpayment; however, the transfer shall not be effective until the Dept. of
Revenue receives written notice of the transfer. Further provides that the taxpayer is entitled
to a refund for any allowable credit which exceeds the aggregate tax liability of the taxpayer.
Proposed law changes the tax credit from a refundable credit to one in which credit amounts
which exceed taxpayer liability may be carried forward against subsequent income or
corporation franchise tax liability for up to five years.
Applicable to tax years beginning on or after Jan. 1, 2015.
(Amends R.S. 47:6034(D)(1))
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.