GREEN SHEET REDIGEST
HB 651 2017 Regular Session Broadwater
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX/CORP INCOME: Provides relative to corporate income tax credits
DIGEST
Proposed law amends certain income and sales tax credits and exemptions as follows:
(1)(R.S. 47:227) Corporate income tax offset for state insurance premium taxes paid is
increased from 72% to 100%.
(2)(R.S. 47:287.759) Income tax credits for employee and dependent health insurance
from 3 6/10ths% to 4% on 40% of the amount of the contract received in a tax year
if 85% of the full-time employees of each contractor are offered health insurance and
each contractor or sub-contractor pays 75% of the premium for each full-time
employee.
(3)(R.S. 47:297(B)) Income tax credits for elderly, contributions to candidate for public
office, investments, foreign taxes, work incentive, jobs, and residential energy credits
from 7 2/10ths% to 7%.
(4)(R.S. 47:297(G)) Income tax credit for environmental equipment purchase from 14
4/10ths% to 14%.
(5)(R.S. 47:297.6) Income tax reduction for rehabilitation of owner-occupied residential
structures from 18 ½% to 18% of the eligible costs and expenses.
(6)(R.S. 47:6005) Sales tax exemption for purchase of new recycling manufacturing or
process equipment and service contracts from 14 4/10ths% to 14% of the cost of the
equipment or contract.
(7)(R.S. 47:6013) Corporate income and franchise tax credit for donations made to a
public school from 28 8/10ths% to 28%.
(8)(R.S. 47:6020) Angel Investor Tax Credit from 25 2/10ths% to 25% of the amount
of investment.
(9)(R.S. 47:6022) Corporate Income tax credit for digital interactive media and software
from 7 2/10ths% to 7%.
(10)(R.S. 47:6034) Income tax credit for musical and theatrical production where total
base investment is between $100,000 and $300,000 from 7 2/10ths% to 7%; and
where the total base investment is between $300,000 and $1 million from 14
4/10ths% to 14%; and if the base investment is spent on payroll for Louisiana
residents, an additional credit from 7 2/10ths% to 7%. Per project cap of $1 million
added. Annual program cap of $10 million added and 50% of the annual cap is
reserved for approved nonprofits. July 1, 2021, sunset added.
(11)(R.S. 47:6035) Corporate income tax credit for conversion of vehicles to alternative
fuel from 7 2/10ths% to 7% of the cost of the motor vehicle.
(12)(R.S. 47:6037) Income tax credit for green jobs industries where total base
investment is between $100,000 and $300,000 from 7 2/10ths% to 7%; and where
the total base investment is between $300,000 and $1 million from 14 4/10ths% to
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Prepared by Leonore F. Heavey. 14%; and if the base investment is spent on payroll for Louisiana residents, an
additional $1 million credit from 7 2/10ths% to 7%.
(13)(R.S. 51:2354) Technology commercialization credit from 28 8/10ths% to 29% of
the money invested in commercialization costs for one business location; and a credit
for new jobs created from 4 32/100ths% to 4%.
(14)(R.S. 51:2399.3) Modernization credit approved on or after July 1, 2015, from 3
6/10ths% to 4%.
Proposed law repeals the sunset date (June 30, 2018) for the 28% reductions to the following
tax credits contained in Act No. 125 of the 2015 RS, as amended by Act No. 29 of the 2016
1st ES, thereby providing for the continued effectiveness of the 28% reductions:
(1)R.S. 25:1226.4 Atchafalaya Trace Heritage Area Development Zone tax credit
(2)R.S. 47:34 Corporation tax credit
(3)R.S. 47:35 Neighborhood assistance tax credit
(4)R.S. 47:37 Credit for contributions to educational institutions
(5)R.S. 47:227 Offset against tax; insurance premium
(6)R.S. 47:265 Credits arising from refunds by utilities
(7)R.S. 47:287.664 Credits arising from refunds by utilities
(8)R.S. 47:287.748 Corporation tax credit; re-entrant jobs credit
(9)R.S. 47:287.749 Jobs credit
(10)R.S. 47:287.752 Credit for employment of first-time nonviolent offenders
(11)R.S. 47:287.753 Neighborhood assistance tax credit
(12)R.S. 47:287.755 Credit for contributions to educational institutions
(13)R.S. 47:287.758 Credit for bone marrow donor expense
(14)R.S. 47:287.759 Credit for employee and dependent health insurance coverage
(15)R.S. 47:297 Reduction to tax due
(16)R.S. 47:297.6 Credit for rehabilitation of residential structures
(17)R.S. 47:297.9 Certain military service members and dependents hunting and fishing
licenses
(18)R.S. 47:6004 Employer Credit
(19)R.S. 47:6005 Qualified new recycling manufacturing equipment and service contracts
(20)R.S. 47:6008 Credit for donations to assist playgrounds in economically depressed
areas
(21)R.S. 47:6009 Louisiana Basic Skills Training Tax Credit
(22)R.S. 47:6012 Employer tax credits for donations of materials, equipment, advisors,
or instructors
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Prepared by Leonore F. Heavey. (23)R.S. 47:6013 Credit for donations to public schools
(24)R.S. 47:6017 Credit for expenses paid by economic development corporations
(25)R.S. 47:6018 Credit for purchasers from "PIE contractors"
(26)R.S. 47:6020 Angel Investor tax credit program
(27)R.S. 47:6022 Digital interactive media and software tax credit
(28)R.S. 47:6023 Sound recording investor tax credit
(29)R.S. 47:6025 Credit for La. Citizens Property Insurance Corp. assessment
(30)R.S. 47:6026 Cane River heritage tax credit
(31)R.S. 47:6032 Credit for certain milk producers
(32)R.S. 47:6034 Musical and theatrical production income tax credit
(33)R.S. 47:6035 Credit for conversion of vehicles to alternative fuel usage
(34)R.S. 47:6036 Ports of Louisiana tax credit
(35)R.S. 47:6037 Credit for "green job industries"
(36)R.S. 51:1807 Incentives (Urban Revitalization)
(37)R.S. 51:2354 Technology commercialization credit
(38)R.S. 51:2399.3 Modernization tax credit
(39)R.S. 51:3085 Community Development Financial Institution tax credit
Effective upon signature of governor or lapse of time for gubernatorial action.
(R.S. 47:227, 287.759(A), 297(B) and (G)(2), 297.6(A)(1)(a), 6005(C)(1), 6013(A),
6020(D)(2)(a), 6034(C)(1)(a)(ii)(bb), (iii)(bb)(intro. para.), and (d)(ii), 6035(D), and
6037(B)(2)(b)(i) and (ii) and (c) all as amended by §2 of Act No. 125 of 2015 R.S., R.S.
47:6022(D)(3)(intro. para.), 6034(C)(1)(a)(ii)(aa), (4), and (K) and R.S. 51:2354(B)(intro.
para.) and 2399.3(A)(2)(b)(intro. para.) both as amended by §3 of Act No. 125 of 2015 R.S.,
R.S. 51:2354(C), and §§7 and 8 of Act No. 125 of 2015 R.S.; adds R.S. 47:6022(D)(4) and
6034(C)(1)(a)(iii)(cc) and R.S. 51:2354(D) and 2399.3(A)(2)(c); repeals §§4, 5, and 6 of Act
No. 125 of 2015 R.S.)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the reengrossed bill
1. Removes permanently removes the 28% reduction from the offset against the
corporate income tax for insurance premium tax paid.
2. Adds per fiscal year and per project caps for the musical and theatrical credit,
reserves 50% of the annual cap for nonprofit organizations.
3. Adds a July 1, 2021, sunset for the musical and theatrical credit.
4. Makes technical changes.
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Prepared by Leonore F. Heavey.