HLS 17RS-1075 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 508
BY REPRESENTATIVE JAMES AND SENATOR MORREL L
TAX CREDITS: Authorizes a fee for the transfer of film tax credits
1 AN ACT
2To amend and reenact R.S. 47:6007(C)(4)(b) and to enact R.S. 47:6007(C)(4)(g), relative
3 to motion picture production tax credits; to authorize a fee for the transfer of a
4 motion picture production credit; to establish the Louisiana Entertainment
5 Development Fund as a special treasury fund; to provide for deposits into and uses
6 of the fund; to provide for effectiveness; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6007(C)(4)(b) is hereby amended and reenacted and R.S.
947:6007(C)(4)(g) is hereby enacted to read as follows:
10 ยง6007. Motion picture production tax credit
11 * * *
12 C. Production tax credit; specific productions and projects.
13 * * *
14 (4) Transferability of the credit. Except as provided for in Item (f)(iii) of this
15 Paragraph, motion picture tax credits not previously claimed by any taxpayer against
16 its income tax may be transferred or sold to another Louisiana taxpayer or to the
17 office, subject to the following conditions:
18 * * *
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1 (b) Transferors and transferees shall submit to the Department of Revenue
2 in writing, a notification of any transfer or sale of tax credits within ten business days
3 after the transfer or sale of such tax credits. No transfer or sale of tax credits shall
4 be effective until recorded in the tax credit registry in accordance with R.S. 47:1524.
5 The notification shall include the transferor's tax credit balance prior to transfer, a
6 copy of any tax credit certification letter(s) issued by the office and the secretary of
7 the Department of Economic Development the transferor's remaining tax credit
8 balance after transfer, all tax identification numbers for both transferor and
9 transferee, the date of transfer, the amount transferred, a copy of the credit
10 certificate, price paid by the transferee to the transferor, in the case when the
11 transferor is a state-certified production, for the tax credits, and any other
12 information required by the office or the Department of Revenue. For the purpose
13 of reporting transfer prices, the term "transfer" shall include allocations pursuant to
14 Paragraph (2) of this Subsection as provided by rule. The tax credit transfer value
15 means the percentage as determined by the price paid by the transferee to the
16 transferor divided by the dollar value of the tax credits that were transferred in
17 return. The notification submitted to the Department of Revenue shall include a
18 processing fee of up to two hundred dollars per transferee, and any information
19 submitted by a transferor or transferee shall be treated by the office and the
20 Department of Revenue as proprietary to the entity reporting such information and
21 therefore confidential. However, this shall not prevent the publication of summary
22 data that includes no fewer than three transactions.
23 * * *
24 (g)(i) The notification submitted to the Department of Revenue shall include
25 a fee of two percent of the tax credit transfer value, which shall be deposited upon
26 receipt in the state treasury.
27 (ii) There is hereby established in the state treasury a special treasury fund,
28 the Louisiana Entertainment Development Fund, hereinafter referred to as the
29 "fund". Out of the funds remaining in the Bond Security and Redemption Fund after
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HB NO. 508
1 a sufficient amount is allocated from that fund to pay all obligations secured by the
2 full faith and credit of the state which becomes due and payable within any fiscal
3 year as required by Article VII, Section 9(B) of this constitution, the treasurer shall
4 deposit in and credit to the fund the fees deposited as provided in this Paragraph.
5 (iii)The money in the fund shall be appropriated by the legislature as follows:
6 (AA) Twenty-five percent to the Department of Revenue for administrative
7 purposes.
8 (BB) Seventy-five percent to the Department of Economic Development,
9 office for education development initiatives, for education development initiatives,
10 matching grants for Louisiana filmmakers, a loan guarantee program, and a deal
11 closing fund.
12 (iv) The money in the fund shall be invested by the treasurer in the same
13 manner as money in the state general fund and interest earned on the investment of
14 the money shall be credited to the fund after compliance with the requirements of
15 Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond
16 Security and Redemption Fund. All unexpended and unencumbered money in the
17 fund at the end of the year shall remain in the fund.
18 (v) The office shall promulgate rules and regulations prior to issuance of any
19 awards pursuant to the provisions of this item, in accordance with the Administrative
20 Procedure Act.
21 * * *
22 Section 2. This Act shall become effective upon signature by the governor or, if not
23signed by the governor, upon expiration of the time for bills to become law without signature
24by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
25vetoed by the governor and subsequently approved by the legislature, this Act shall become
26effective on the day following such approval.
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HB NO. 508
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 508 Original 2017 Regular Session James
Abstract: Provides for a fee for the transfer of a motion picture production tax credit.
Establishes the Louisiana Entertainment Development Fund as a special treasury
fund and deposits the collections from the fee into the fund.
Present law authorizes the transfer of tax credits and requires that the transferor and
transferee submit a notification of the transfer to the Dept. of Revenue.
Present law requires a processing fee of up to $250 per transferee be submitted with the
notification.
Proposed law changes the amount of the fee from up to $250 per transferee to 2% of the tax
credit transfer value.
Proposed law creates the Louisiana Entertainment Development Fund and deposits into the
fund the fees required in proposed law.
Proposed law requires 25% of the fund to be appropriated to the Dept. of Revenue for
administrative purposes and 75% to the Dept. of Economic Development for education
development initiatives, matching grants for Louisiana filmmakers, a loan guarantee
program, and a deal closing fund.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6007(C)(4)(b); Adds R.S. 47:6007(C)(4)(g))
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