GREEN SHEET REDIGEST
HB 337 2017 Regular Session Stokes
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX CREDITS: Provides for an individual income tax credit for improvements made
to the residences of individuals with certain disabilities
DIGEST
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 if the taxpayer, the taxpayer's spouse, or an individual
who qualifies as a dependent of the taxpayer for purposes of determining the taxpayer's
federal income tax liability and who resides with the taxpayer has a physical disability that
requires, or will require, the inclusion of such accessible and barrier-free design elements in
the dwelling.
Proposed law further provides that if the dwelling is co-owned in indivision by two or more
taxpayers who qualify for and claim a homestead exemption on the dwelling, the credit
allowed to each taxpayer shall be limited to the pro-rata ownership interest of the taxpayers.
Proposed law changes the amount of the credit from the lesser of $720 or 72% of the
taxpayer's total tax liability to the lesser of $5,000 or the cost of the construction. 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 requires the renovation of an existing dwelling to meet any of the standards
enumerated in present law to be eligible for the tax credit.
Proposed law provides, notwithstanding any law to the contrary, that the taxpayer shall be
allowed to claim the tax credit if any individual in the taxpayer's household has a physical
disability that requires, or will require, the inclusion of accessible and barrier-free design
elements in the dwelling, provided that such individual who, for the taxable year of the
taxpayer, has as his principal place of abode the home of the taxpayer and can be identified
as a member of the taxpayer's household.
Proposed law provides, notwithstanding any law to the contrary, the taxpayer shall be
allowed to claim the tax credit in any case where there is a valid and enforceable contract of
lease, as defined in present law, between the taxpayer and any individual who has a physical
disability that requires, or will require, the inclusion of accessible and barrier-free design
elements in the dwelling and who occupies and resides in any portion of such dwelling
pursuant to the terms of the contract of lease
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 claim is disallowed due to the cap may claim the credit
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Prepared by James Benton. 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), (3)(intro. para.), and (5))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. 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.
The House Floor Amendments to the engrossed bill:
1. Delete the requirement that a dwelling meet all accessibility standards required
by federal law to be eligible for the credit.
2. Clarify that a new dwelling is required to meet all of the requirements in present
law and that a renovated dwelling is required to meet any requirement in present
law.
3. Change the amount of the credit from $5,000 to $5,000 or the cost of the
construction or renovation, whichever is less.
4. Make technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Adds to the eligibility requirements to receive the 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.
2. Provides for a pro-rata division of the credit against individual income tax for co-
owned dwellings.
3. Provides that the principal place of abode of a disable person determines the
qualification of the taxpayer for the credit.
4. Provides for eligibility of the credit for lessors who have a valid enforceable
contract of lease with a lessee who is disabled and requires inclusion of
accessible and barrier-free design elements.
5. Makes technical changes.
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Prepared by James Benton.