SLS 15RS-233 REENGROSSED
2015 Regular Session
SENATE BILL NO. 106
BY SENATOR MORRELL AND REPRESENTATIVE TALBOT
TAX/TAXATION. Requires recovery of motion picture investor tax credits issued in
violation of the tax credit law or its administrative interpretation and those issued to an
investor convicted of a criminal violation related to such tax credits. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 47:6007(B)(6) and to enact R.S. 47:6007(G), relative to motion
3 picture investor tax credits; to provide for eligibility for the credits; to provide for the
4 invalidity of credits and their recovery under certain circumstances; to provide for
5 retroactivity and severability; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6007(B)(6) is hereby amended and R.S. 47:6007(G) is hereby
8 enacted to read as follows:
9 ยง6007. Motion picture investor tax credit
10 * * *
11 B. Definitions. For the purposes of this Section:
12 * * *
13 (6) "Motion picture production company" means a company engaged in the
14 business of producing nationally or internationally distributed motion pictures as
15 defined in this Section. Motion picture production company shall not mean or
16 include any company owned, affiliated, or controlled, in whole or in part, by any of
17 the following companies or persons:
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1 (a) any Any company or person which is in default on a loan made by the
2 state or a loan guaranteed by the state,.
3 (b) nor with any Any company or person who has ever declared bankruptcy
4 under which an obligation of the company or person to pay or repay public funds or
5 monies was discharged as a part of such bankruptcy.
6 (c) Any company or person who has been convicted of a criminal
7 violation related to the tax credits provided for in this Section.
8 (d) Any company or person who was granted, or was required to be
9 granted, tax credits in violation of the provisions of this Section or the
10 administrative interpretation of this Section by the office or the office's
11 predecessors.
12 * * *
13 G. Notwithstanding the provisions of Subsections E and F of this Section
14 or any other law to the contrary:
15 (1)(a) If the office determines that an investor was granted, or was
16 required to be granted, tax credits in violation of the provisions of this Section
17 or the administrative interpretation of this Section by the office or the office's
18 predecessors, such tax credits granted shall be invalidated and the amount shall
19 be recovered by the secretary of the Department of Revenue.
20 (b) If the office determines that any investor who was granted a tax
21 credit pursuant to this Section has been convicted of a criminal violation related
22 to the tax credits provided for in this Section, no further tax credits shall be
23 issued and all tax credits previously issued to such investor shall be invalidated
24 and shall be recovered by the secretary of the Department of Revenue by an
25 action for recovery initiated at any time, and the running of any prescription
26 against such claim shall be interrupted until the action for recovery is filed by
27 the secretary.
28 (c) An investor under Paragraph (1) or Paragraph (2) of this Subsection
29 shall be assessed for the tax period in which the tax credits are invalidated by
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1 the amount necessary for the recapture of tax credits provided for in this
2 Subsection and the secretary of the Department of Revenue shall recover such
3 tax credits through any collection remedy authorized by R.S. 47:1561, plus
4 interest and penalties provided for the delinquent payment of taxes.
5 (d) The provisions of this Subsection shall not apply to a good faith
6 transferee of tax credits, which transfer has completed the procedure provided
7 for in Paragraph (C)(4) of this Section.
8 (2) If the office determines that any investor has been charged with a
9 criminal violation related to tax credits provided for in this Section, the office
10 shall defer issuance of any credits until conviction or acquittal of such charges.
11 (3) For purposes of this Subsection, "investor" shall mean any investor,
12 applicant production company, or any individual with an ownership interest of
13 five percent or more in an applicant production company.
14 Section 2. The provisions of this Act shall be retroactive.
15 Section 3. The provisions of this Act shall be severable.
16 Section 4. This Act shall become effective upon signature by the governor or, if not
17 signed by the governor, upon expiration of the time for bills to become law without signature
18 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
19 vetoed by the governor and subsequently approved by the legislature, this Act shall become
20 effective on the day following such approval.
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Ann S. Brown.
DIGEST
SB 106 Reengrossed 2015 Regular Session Morrell
Present law defines a "motion picture production company" eligible for motion picture
investor tax credits.
Proposed law adds to that definition that such a "motion picture production company" shall
not include any company owned, affiliated, or controlled, in whole or in part, by:
(1)Any company or person who has been convicted of a criminal violation related to the
tax motion picture investor tax credits.
(2)Any company or person who was granted, or was required to be granted, tax credits
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in violation of the provisions of the motion picture investor tax credit law or the
administrative interpretation of the law by the office of entertainment industry
development in the Department of Economic Development, or that office's
predecessors.
Proposed law requires motion picture investor tax credits to be invalidated and the amount
recovered by the secretary of the Department of Revenue if:
(1)The office of entertainment industry development determines that an investor was
granted, or was required to be granted, the credits in violation of the provisions of
the motion picture investor tax credit law or the administrative interpretation of the
law by the office, or that office's predecessors.
(2)If the office determines that any investor who was granted motion picture investor
tax credits has been convicted of a criminal violation related to the tax credits, no
further tax credits shall be issued and all tax credits previously issued investor must
be invalidated and must be recovered by the secretary of LDR by an action for
recovery initiated at any time, and the running of any prescription against such claim
is interrupted until the action for recovery is filed by the secretary.
Proposed law requires certain investor shall be assessed for the state income tax period in
which the tax credits are invalidated by the amount necessary for the recapture of tax credits
and the secretary of LDR must recover such tax credits through any collection remedy
authorized by R.S. 47:1561, plus interest and penalties provided for the delinquent payment
of taxes.
Proposed law shall not apply to a good faith transferee of tax credits, which transfer has
completed the procedure provided in present law.
Proposed law provides that if the office determines that any investor has been charged with
a criminal violation related to tax credits, the office shall defer issuance of any credits until
conviction or acquittal of such charges.
Proposed law clarifies that "investor" shall mean any investor, applicant production
company, or any individual with an ownership interest of five percent or more in an
applicant production company.
Provides that the provisions of the proposed law are retroactive and specifies that its
provisions are severable.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6007(B)(6); adds R.S. 47:6007(G))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Removes the provision that states that a motion picture production company
shall not include any company owned, affiliated, or controlled, in whole or
in part, by any company or person who has only been charged with a
criminal violation of the tax motion picture investor tax credits.
2. Provides that no further tax credits shall be issued and all previously issued
tax credits shall be invalidated and recovered by LDR's secretary when the
office determines that an investor who was granted motion picture tax credits
has been convicted of a criminal violation related to the tax credits.
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SLS 15RS-233 REENGROSSED
3. Provides a definition of "investor".
4. Provides that the provision of proposed law shall not apply to a good faith
transferee of tax credits when the transfer has been completed in accordance
to present law.
5. Requires the office to defer issuance of any tax credits until conviction or
acquittal of such charges when the office has determined that an investor has
been charged with a criminal violation related to tax credits.
6. Technical amendments.
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words in boldface type and underscored are additions.