The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Riley Boudreaux.
DIGEST
SB 91 Original 2015 Regular Session Adley
Proposed law changes various refundable income and/or corporate franchise tax credits to
nonrefundable tax credits in Title 47 applicable to taxes beginning with returns filed on and after
January 1, 2015, unless otherwise noted:
§297.6. Rehabilitation of residential structures - allows a refundable income tax credit of
varying percentages of the cost for the rehabilitation of owner-occupied residential or owner-
occupied mixed use structures (occupied by the owner for at least five years) located in a
National Register Historic District, a local historic district, a Main Street District, a cultural
products district, or a downtown development district, or if the owner-occupied residential
structure has been listed or is eligible for listing on the National Register or has been certified
by the State Historic Preservation Office as contributing to the historical significance of the
district, or is a vacant and blighted owner-occupied residential structure located anywhere
in the state that is at least 55 years old. The total credit cannot exceed $25,000 per structure
and the total credit is capped at $2.5 million per calendar year, and the rehabilitation costs
for the structure must exceed $10,000. The credit terminates January 1, 2018.
§6006. Tax credits for local inventory taxes paid - allows a refundable credit against any
Louisiana income or corporation franchise tax for ad valorem property 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.
§6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental Shelf Lands
Act Waters - allows a refundable credit against income or corporation franchise tax for all
of the ad valorem property taxes paid to political subdivisions on vessels in Outer
Continental Shelf Lands Act Waters as certified to the assessor within the calendar year
immediately preceding the taxable year of assessment of the vessel.
§6014. Credit for property taxes paid by certain telephone companies - allows a refundable
tax credit against income taxes and corporation franchise tax for 40% of the aggregate ad
valorem property taxes paid to political subdivisions by a telephone company with respect
to the telephone company's public service properties which are assessed by the Louisiana Tax
Commission at 25% of fair market value. Also requires state sales tax collected on the
furnishing of interstate and international telecommunication services, to be deposited in the
Telephone Company Property Assessment Relief Fund, to be used solely and exclusively for
the purpose of providing funds to pay the "credits or refunds" in present law.
Proposed law makes the tax credit nonrefundable beginning January 1, 2015, and allows money in the fund "to be appropriated as provided for by law".
§6015. Research and development tax credit - authorizes the Department of Economic
Development, until January 1, 2020, to approve or disapprove applications for refundable
research and development tax credits equal to 80% of the difference, if any, of the Louisiana
qualified research expenses for the taxable year minus the base amount, if a taxpayer and the
aggregate of all its affiliated companies is an entity that employs 100 or more people; 20%
if the entity employs 50 to 99 people; and 40% if the entity employs less than 50 people.
Proposed law authorizes the Department of Economic Development to grant only nonrefundable
credits for research and development tax credit applications approved on and after July 1, 2015.
§6030. Solar energy systems tax credit - grants a solar energy systems tax credit of 50% of
the first $25,000 of the cost of a system that is already installed in a newly constructed
residence or which is purchased and installed at an existing residence before January 1, 2018,
and 38% of the first $25,000 for a system that is purchased and installed "at a Louisiana
residence by a third party through a lease with the owner of the residence".
Proposed law prohibits refunds of tax credits on systems purchased and installed on or after July 1,
2015.
§6032. Tax credit for certain milk producers - allows a refundable tax credit based on the
amount of milk produced and sold below the "announced production price" when the USDA
Uniform Price in Federal Order Number 7 drops below such "announced production price"
any time during the calendar year. The maximum credit is $30,000 and the total aggregate
amount of tax credits for all producers is capped at $2.5 million per calendar year.
§6034. Musical and theatrical production income tax credit - provides income refundable and
transferable tax credits for state-certified musical or theatrical productions or infrastructure
projects or for higher education musical or theatrical infrastructure projects certified by the
Department of Economic Development .
Proposed law provides that tax credits for such projects initially certified by the department on or
after July 1, 2015, shall not be refundable or transferable.
§6035. Tax credit for conversion of vehicles to alternative fuel usage - grants a refundable
income tax credit equal to 50% of the cost of qualified clean-burning motor vehicle fuel
property which operates on "alternative fuel", defined as natural gas, liquified petroleum gas,
and any nonethanol based advanced biofuel and includes certain electric vehicles. The
purchaser of a new motor vehicle is able to claim a refundable credit of 10% of the cost of
the motor vehicle or $3,000, whichever is less.
Applicable to all income tax years beginning on and after January 1, 2015, and franchise tax years
beginning on and after January 1, 2016. Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:297.6(A)(4), 6006(B), 6006.1(C) and (D), 6014(D) and (E)(2), 6015(B)(1) and (2)
and (D), 6030(F), 6032(A) and (E), 6034(C)(1)(a)(i)(dd), (D)(1), and (E)(1)(d)(iv) and 6035(E);
repeals R.S. 6014(E)(4))