HLS 17RS-609 ENGROSSED
2017 Regular Session
HOUSE BILL NO. 337
BY REPRESENTATIVES STOKES AND SIMON
TAX CREDITS: Provides for an individual income tax credit for improvements made to the
residences of individuals with certain disabilities
1 AN ACT
2To amend and reenact R.S. 47:297(P)(1), (2), and (5) and to enact R.S. 47:297(P)(3)(e),
3 relative to individual income tax credits; to authorize an individual income tax credit
4 for certain residential improvements made by persons with certain disabilities; to
5 provide for a program cap; to provide for effectiveness; and to provide for related
6 matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:297(P)(1), (2), and (5) are hereby amended and reenacted and
9R.S. 47:297(P)(3)(e) is hereby enacted to read as follows:
10 ยง297. Reduction to tax due
11 * * *
12 P.(1) There shall be allowed a credit against the individual income tax
13 liability of a taxpayer for the inclusion of accessible and barrier-free design elements
14 in either the construction of a new one- or two-family dwelling or the renovation of
15 an existing dwelling. For purposes of this Subsection, "taxpayer" shall mean an
16 individual who owns a newly constructed one- or two-family dwelling, or the
17 existing dwelling that is renovated, and who qualifies for and claims a homestead
18 exemption on a dwelling which meets all of the design elements necessary for
19 claiming the tax credit authorized by the provisions of this Subsection.
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HB NO. 337
1 (2) The amount of the credit shall be seven hundred twenty five thousand
2 dollars, or seventy-two percent of the total tax liability of the taxpayer, whichever
3 is less. The credit shall be taken in the taxable year in which the construction of the
4 dwelling is completed. Only one tax credit may be granted per dwelling. If the
5 amount of the credit authorized by this Paragraph exceeds the amount of tax liability
6 for the tax year, the amount of unused credit may be carried forward as a credit
7 against subsequent Louisiana individual income tax liability for a period not to
8 exceed five years.
9 (3) A dwelling which meets all of the following requirements shall be
10 deemed to include accessible and barrier-free design elements for purposes of the tax
11 credit:
12 * * *
13 (e) It meets all of the accessibility standards as required by the 2010
14 Americans with Disabilities Act Standards for Accessible Design, or its successor.
15 * * *
16 (5) The provisions of this Subsection shall be effective for all tax years
17 beginning on or after January 1, 2012. The total amount of tax credit granted by the
18 department in any calendar year shall not exceed five hundred thousand dollars.
19 Claims for tax credits shall be allowed on a first-come, first-served basis. Any
20 taxpayer whose claim exceeds the amount of tax credit that the department is
21 authorized to grant in a calendar year may claim the credit against the individual
22 income tax liability on an original tax return filed in the next calendar year and his
23 claim shall have priority over other claims filed after the date and time of his original
24 claim. If the department does not grant the entire five hundred thousand dollars of
25 tax credits in any calendar year, the amount of residual unused tax credits shall carry
26 forward to subsequent calendar years and may be granted in any year without regard
27 to the five hundred thousand dollar per year limitation.
28 Section 2. Notwithstanding the provisions of Section 8 of Act No. 125 of the 2015
29Regular Session as amended by Act No. 29 of the 2016 First Extraordinary Session of the
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HB NO. 337
1Legislature, R.S. 47:297(P)(2) as enacted by Section 5 of Act No. 125 of the 2015 Regular
2Session shall not become effective.
3 Section 3. The provisions of this Act shall be applicable for all taxable periods
4beginning on and after January 1, 2018.
5 Section 4. This Act shall become effective on January 1, 2018.
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 337 Engrossed 2017 Regular Session Stokes
Abstract: Expands the individual income tax credit for the inclusion of accessible and
barrier-free design elements in the construction of certain dwellings and provides for
a program cap.
Present law authorizes a credit against individual income tax for the owner of a newly
constructed one- or two-family dwelling that includes certain accessible and barrier-free
design elements. Eligibility is limited to individuals who own such a dwelling, claim the
homestead exemption thereon, and the dwelling meets all of the design elements necessary
for claiming the tax credit.
Present law further requires that the tax credit be taken in the taxable year in which the
construction is completed. The credit is limited to the lesser of $720 or 72% of the
taxpayer's total tax liability. Only one tax credit may be granted per dwelling.
Proposed law adds existing dwellings that are renovated to include accessible and barrier-
free design elements as a dwelling for which a taxpayer may be eligible to receive the credit.
Proposed law changes the amount of the credit from the lesser of $720 or 72% of the
taxpayer's total tax liability to $5,000. Further authorizes excess, unused credit to be carried
forward and applied to subsequent tax liability for five years.
Present law requires the dwelling to meet certain standards to be eligible for the tax credit.
Proposed law retains present law and adds the requirement that the dwelling meet the
accessibility standards required by federal law.
Proposed law establishes a program cap not to exceed $500,000 in credits granted by the
Dept. of Revenue each calendar year and provides for the claim of credits on a first-come,
first-served basis. A taxpayer whose claims is disallowed due to the cap may claim the
credit in the next calendar year and have priority over other claims. Allows any amount not
granted to roll over to subsequent years.
Effective Jan. 1, 2018.
(Amends R.S. 47:297(P)(1), (2), and (5); Adds R.S. 47:297(P)(3)(e))
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HB NO. 337
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Add provisions to allow for a first-come, first-served priority order for taxpayers
whose claim for the credit is disallowed because the annual cap has been met.
2. Add provisions that the claims of credits are on a first-come, first-served basis
and allows taxpayer whose claims is disallowed due to the cap to claim the credit
in the next calendar year and have priority over other claims.
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