HLS 15RS-848 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 806
BY REPRESENTATIVE ADAMS
TAX CREDITS: Provides for the carry forward rather than the refund of the tax credit for
the rehabilitation of residential structures
1 AN ACT
2To amend and reenact R.S. 47:297.6(A)(4), relative to income tax credits; to provide relative
3 to the tax credit for the rehabilitation of residential structures; to provide with respect
4 to the authorization for issuance of refunds for tax credits which exceed taxpayer tax
5 liability; to provide for certain limitations; to provide for effectiveness; and to
6 provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:297.6(A)(4) is hereby amended and reenacted to read as follows:
9 ยง297.6. Reduction to tax due; rehabilitation of residential structures
10 A.
11 * * *
12 (4) Any excess of the credit portion allowed in a taxable period over the
13 individual income tax liability for that taxable period against which the credit can be
14 applied shall constitute an overpayment, as defined in R.S. 47:1621(A), and the
15 secretary shall make a refund of such overpayment from the current collections of
16 the taxes imposed by Chapter 1 of Subtitle II of this Title, as amended. The right to
17 a refund of any such overpayment shall not be subject to the requirements of R.S.
18 47:1621(B). If the amount of the credit exceeds the amount of tax liability for the
19 tax year, then any unused credit may be carried forward as a credit against
20 subsequent individual income tax liability for a period not to exceed five years.
21 * * *
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-848 ORIGINAL
HB NO. 806
1 Section 2. The provisions of this Act shall be applicable to tax years beginning on
2or 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 806 Original 2015 Regular Session Adams
Abstract: Changes the tax credit for the rehabilitation of residential structures 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 provides for an individual income tax credit for eligible costs and expenses
incurred during the rehabilitation of owner-occupied residential or owner-occupied mixed
use structures located in certain districts, owner-occupied residential structures listed in or
eligible to be listed on the National Register or which has been certified by the State Historic
Preservation Office as contributing to the historical significance of the district, or a vacant
and blighted owner-occupied residential structure that is at least 50 years old. Only one
credit may be claimed per rehabilitated structure and the total amount of the credit shall not
exceed $25,000. In order to qualify for the credit, the rehabilitation costs must exceed
$10,000.
Present law provides that the taxpayer is entitled to a refund for any allowable credit which
exceeds the aggregate tax liability of the taxpayer. The department is required to pay the
refund from current tax collections.
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 individual
income tax liability for up to five years.
(Amends R.S. 47:299.6(A)(4))
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.