HLS 161ES-55 ORIGINAL
2016 First Extraordinary Session
HOUSE BILL NO. 24
BY REPRESENTATIVE JACKSON
TAX CREDITS: Repeals the three-year sunset of certain reductions to income and
corporation franchise tax credits (Item #10)
1 AN ACT
2To amend and reenact R.S. 47:227 and 6034(C)(1)(a)(ii)(bb)(II), (c)(ii), and (d)(ii), and
3 Sections 7 and 8 of Act No. 125 of the 2015 Regular Session of the Legislature and
4 to repeal Sections 4, 5, and 6 of Act No. 125 of the 2015 Regular Session of the
5 Legislature, relative to the sunset of reductions to tax credits in Act No. 125 of the
6 2015 Regular Session of the Legislature; to repeal the three-year sunset of reductions
7 to tax credits in Act No. 125 of the 2015 Regular Session; to provide for an effective
8 date; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:227 and 6034(C)(1)(a)(ii)(bb)(II), (c)(ii), and (d)(ii) are hereby
11amended and reenacted to read as follows:
12 §227. Offset against tax
13 Every insurance company shall be entitled to an offset against any tax
14 incurred under this Chapter, in the amount of any taxes, based on premiums, paid by
15 it during the preceding twelve months, by virtue of any law of this state. Beginning
16 on and after July 1, 2015, and before July 1, 2018, the offset shall be equal to
17 seventy-two percent of the amount of any taxes, based on premiums.
18 * * *
19 §6034. Musical and theatrical production income tax credit
20 * * *
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HB NO. 24
1 C. Income tax credits for state-certified productions and state-certified
2 musical or theatrical facility infrastructure projects:
3 (1) There is hereby authorized the following types of credits against the state
4 income tax:
5 (a)
6 * * *
7 (ii)
8 * * *
9 (bb)
10 * * *
11 (II) For state-certified higher education musical or theatrical infrastructure
12 projects that receive initial certification on or after July 1, 2015, and on or before
13 January 1, 2018, a base investment credit may be earned for expenditures made in
14 the state on or before January 1, 2022, for the construction, repair, or renovation of
15 a new state-certified higher education musical or theatrical facility infrastructure
16 project, or for investments made by a company or a financier in such infrastructure
17 project that are, in turn, expended for such construction, repair, or renovation. No
18 more than seven million two hundred thousand dollars in tax credits per project or
19 forty-three million two hundred thousand dollars total in tax credits shall be granted
20 for state-certified higher education musical or theatrical infrastructure projects that
21 receive initial certification on or after July 1, 2015, and on or before January 1, 2018.
22 Twenty-five percent of the total base investment provided for in the initial
23 certification letter of a state-certified higher education musical or theatrical
24 infrastructure project must be expended on or before January 1, 2020, in order for the
25 project to earn credits for the remaining estimated base investment provided for in
26 the initial certification letter, as expenditures are made in the state on or before
27 January 1, 2022. No credits shall be certified until the state-certified higher
28 education musical or theatrical infrastructure project is complete. The initial
29 certification letter shall be effective for qualified expenditures made no more than
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HB NO. 24
1 six months prior to the date of application. State-certified higher education musical
2 or theatrical infrastructure projects shall not be subject to the provisions of Subitem
3 (cc) of this Item nor shall such projects be subject to the provisions of Subsection H
4 of this Section.
5 * * *
6 (c)
7 * * *
8 (ii) For state-certified musical or theatrical productions that receive an initial
9 certification on or after July 1, 2015, and on or before January 1, 2018, an additional
10 tax credit of seventy-two thousandths of one percent of the amount expended to
11 employ students enrolled in Louisiana colleges, universities, and vocational-
12 technical schools in a state-certified musical or theatrical production in arts-related
13 positions, such as an actor, writer, producer, stagehand, or director, or as a technician
14 working on aspects of the production such as lighting, sound, and actual stage work,
15 or working indirectly on the production in accounting, law, management, and
16 marketing.
17 (d)
18 * * *
19 (ii) To the extent that base investment is expended on payroll for Louisiana
20 residents employed in connection with a state-certified musical or theatrical
21 production that receives initial certification on or after July 1, 2015, and on or before
22 January 1, 2018, except for the students provided for in Subparagraph (c) of this
23 Paragraph, or the construction of a state-certified musical or theatrical facility
24 infrastructure project, a company shall be allowed an additional tax credit of seven
25 and two-tenths of one percent of such payroll; however, if the amount paid to any
26 one person exceeds one million dollars, the additional credit shall not include any
27 amount paid to that person that exceeds one million dollars.
28 * * *
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HB NO. 24
1 Section 2. Sections 4, 5, and 6 of Act No. 125 of the 2015 Regular Session of the
2Legislature are hereby repealed in their entirety.
3 Section 3. Sections 7 and 8 of Act No. 125 of the 2015 Regular Session of the
4Legislature are hereby amended and reenacted as follows:
5 * * *
6 Section 7.(A) Except as provided for in Subsection (B) of this Section, the
7 provisions of Sections 1, 2, and 3 of this Act shall apply to a claim for a credit on any
8 return filed on or after July 1, 2015, but before June 30, 2018, regardless of the
9 taxable year to which the return relates.
10 (B) The provisions of Sections 1, 2, and 3 of this Act shall not apply to an
11 amended return filed on or after July 1, 2015, but before June 30, 2018, relating to
12 a credit properly claimed on an original return filed prior to July 1, 2015.
13 (C) If a return is filed after July 1, 2015, but before June 30, 2018, for which
14 a valid filing extension has been allowed prior to July 1, 2015, then any portion of
15 the credit reduced by the provisions of Sections 1, 2, or 3 of this Act shall be allowed
16 as a credit in the amount of one-third of the reduced portion of the credit on the
17 taxpayer's return for each of the taxable years beginning during calendar years 2017,
18 2018, and 2019.
19 Section 8. The provisions of Sections 1, 2, and 3 of this Act shall become
20 effective on July 1, 2015 and shall remain effective through June 30, 2018. The
21 provisions of Sections 4, 5, and 6 of this Act shall become effective on July 1, 2018
22 and shall apply to original returns filed on or after July 1, 2018.
23 Section 4. This Act shall become effective upon signature by the governor or, if not
24signed by the governor, upon expiration of the time for bills to become law without signature
25by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
26vetoed by the governor and subsequently approved by the legislature, this Act shall become
27effective on the day following such approval.
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HB NO. 24
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 24 Original 2016 First Extraordinary Session Jackson
Abstract: Repeals three-year sunset of 28% reductions made to tax credits in Act No. 125
of the 2015 R.S.
Present law sunsets on June 30, 2018, the 28% reductions made in Act No. 125 of the 2015
R.S. to the following tax credits:
(1)R.S. 25:1226.4 Atchafalaya Trace Heritage Area Development Zone tax credit
(2)R.S. 47:34 Corporation tax credit
(3)R.S. 47:35 Neighborhood assistance tax credit
(4)R.S. 47:37 Credit for contributions to educational institutions
(5)R.S. 47:227 Offset against tax; insurance premium
(6)R.S. 47:265 Credits arising from refunds by utilities
(7)R.S. 47:287.664 Credits arising from refunds by utilities
(8)R.S. 47:287.748 Corporation tax credit; re-entrant jobs credit
(9)R.S. 47:287.749 Jobs credit
(10)R.S. 47:287.752 Credit for employment of first-time nonviolent offenders
(11)R.S. 47:287.753 Neighborhood assistance tax credit
(12)R.S. 47:287.755 Credit for contributions to educational institutions
(13)R.S. 47:287.758 Credit for bone marrow donor expense
(14)R.S. 47:287.759 Credit for employee and dependent health insurance coverage
(15)R.S. 47:297 Reduction to tax due
(16)R.S. 47:297.6 Credit for rehabilitation of residential structures
(17)R.S. 47:297.9 Certain military servicemembers and dependents hunting and fishing
licenses
(18)R.S. 47:6004 Employer Credit
(19)R.S. 47:6005 Qualified new recycling manufacturing equipment and service
contracts
(20)R.S. 47:6008 Credit for donations to assist playgrounds in economically depressed
areas
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HB NO. 24
(21)R.S. 47:6009 Louisiana Basic Skills Training Tax Credit
(22)R.S. 47:6012 Employer tax credits for donations of materials, equipment, advisors,
or instructors
(23)R.S. 47:6013 Credit for donations to public schools
(24)R.S. 47:6017 Credit for expenses paid by economic development corporations
(25)R.S. 47:6018 Credit for purchasers from "PIE contractors"
(26)R.S. 47:6020 Angel Investor tax credit program
(27)R.S. 47:6022 Digital interactive media and software tax credit
(28)R.S. 47:6023 Sound recording investor tax credit
(29)R.S. 47:6025 Credit for La. Citizens Property Insurance Corp. assessment
(30)R.S. 47:6026 Cane River heritage tax credit
(31)R.S. 47:6032 Credit for certain milk producers
(32)R.S. 47:6034 Musical and theatrical production income tax credit
(33)R.S. 47:6035 Credit for conversion of vehicles to alternative fuel usage
(34)R.S. 47:6037 Credit for "green job industries"
(35)R.S. 51:1807 Incentives (Urban Revitalization)
(36)R.S. 51:2354 Technology commercialization credit
(37)R.S. 51:2399.3 Modernization tax credit
Proposed law repeals the three-year sunset on the 28% reductions to tax credits in Act No.
125 of the 2015 R.S. making the 28% reductions permanent.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:227 and 6034(C)(1)(a)(ii)(bb)(II), (c)(ii), and (d)(ii), and §§7 and 8 of Act
No. 125 of the 2015 R.S.; Repeals §§4, 5, and 6 of Act No. 125 of the 2015 R.S.)
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