Provides for the legislative intent of Act No. 451 of the 2015 Regular Session (EN NO IMPACT See Note)
Impact
The implications of HCR54 are significant for the motion picture industry in Louisiana, particularly regarding the administration of tax credits granted under state law. By specifying who can act as brokers for these tax credits, the resolution seeks to prevent abuse of the system and to ensure that transactions involving tax credits are conducted by vetted and authorized individuals. Additionally, it mandates a criminal history background examination for applicants seeking to register with the Public Registry, further safeguarding the process.
Summary
HCR54 is a concurrent resolution that expresses the intent of the Louisiana legislature regarding Act No. 451, which was enacted during the 2015 Regular Session. The resolution clarifies the definition of individuals who are considered 'brokers' of tax credits associated with motion picture investments. The law prohibits individuals not registered with the Public Registry of Motion Picture Investor Tax Credit Brokers from selling or brokering such tax credits. This aim ensures that only qualified individuals have access to sell these tax credits, thereby providing oversight and maintaining integrity within the process.
Sentiment
In discussions related to HCR54, the sentiment was generally supportive among legislators, as it aims to reinforce regulations pertinent to the motion picture industry's financial practices. Lawmakers highlighted the necessity for clarity in tax credit interactions, viewing the resolution as a safeguard against potential fraud or unethical practices in tax credit brokerage. However, there may also be concerns from individuals in the industry about the additional regulations and requirements placed on them.
Contention
Notably, while the resolution itself aims to clarify existing laws, it does not amend or create new statutes but rather serves to interpret the existing legislation regarding motion picture tax credits. The main points of contention could arise from how these regulations may affect small business tax preparers or employees who facilitate the sale of credits specifically for their clients, as they are excluded from the definition of 'broker' under the new interpretation. This distinction raises questions about compliance and possible unintended consequences on how tax services are rendered in the context of motion picture tax credits.
Provides relative to the legislative intent regarding the effectiveness provisions of the Act that originated as House Bill No. 646 of the 2017 Regular Session of the Legislature
Reduces the amount of certain tax credits beginning January 1, 2014, for income tax credits and January 1, 2015, for corporate franchise credits (RE INCREASE GF RV See Note)
Establishes a registry for tax credits and provides relative to the period of time to report claims or a transfer to the registry (EN SEE FISC NOTE GF EX See Note)