HLS 17RS-1075 ENGROSSED
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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HB NO. 508
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, for projects that apply to the office prior to July 1, 2017, of two hundred
26 dollars per transferee, and a fee, for projects that apply to the office on or after July
27 1, 2017, of two percent of the tax credit transfer value, which shall be deposited upon
28 receipt in the state treasury.
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HB NO. 508
1 (ii) There is hereby established in the state treasury a special treasury fund,
2 the Louisiana Entertainment Development Fund, hereinafter referred to as the
3 "fund". Out of the funds remaining in the Bond Security and Redemption Fund after
4 a sufficient amount is allocated from that fund to pay all obligations secured by the
5 full faith and credit of the state which becomes due and payable within any fiscal
6 year as required by Article VII, Section 9(B) of this constitution, the treasurer shall
7 deposit in and credit to the fund the fees deposited as provided in this Paragraph.
8 (iii)The money in the fund shall be appropriated by the legislature as follows:
9 (AA) Twenty-five percent to the Department of Revenue for administrative
10 purposes.
11 (BB) Seventy-five percent to the Department of Economic Development,
12 office for education development initiatives, matching grants for Louisiana
13 filmmakers, a loan guarantee program, and a deal closing fund.
14 (iv) The money in the fund shall be invested by the treasurer in the same
15 manner as money in the state general fund and interest earned on the investment of
16 the money shall be credited to the fund after compliance with the requirements of
17 Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond
18 Security and Redemption Fund. All unexpended and unencumbered money in the
19 fund at the end of the year shall remain in the fund.
20 (v) The office shall promulgate rules and regulations prior to issuance of any
21 awards pursuant to the provisions of this item, in accordance with the Administrative
22 Procedure Act.
23 * * *
24 Section 2. This Act shall take effect and become operative if the Act which
25originated as Senate Bill No. 254 of this 2017 Regular Session of the Legislature is enacted
26and becomes effective.
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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 Engrossed 2017 Regular Session James
Abstract: Provides for a fee for the transfer of a motion picture production tax credit.
Establishes the La. 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 $200 for
requests to transfer filed with the office prior to July 1, 2017, and 2% of the tax credit
transfer value for requests to transfer filed on or after July 1, 2017.
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 if and when Senate Bill No. 254 of this 2017 R.S. is enacted and becomes
effective.
(Amends R.S. 47:6007(C)(4)(b); Adds R.S. 47:6007(C)(4)(g))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the fee requirement for the notification of transfer from 2% of the tax
credit transfer value to $200 for projects that apply for transfer prior to July 1,
2017, and 2% of the tax credit transfer value for projects that apply for transfer
on or after July 1, 2017.
2. Change the effective date from upon signature of the governor to conditional
effectiveness if Senate Bill No. 254 from the 2017 R.S. of the Legislature is
enacted and becomes effective.
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are additions.