SLS 17RS-320 REENGROSSED
2017 Regular Session
SENATE BILL NO. 150
BY SENATORS CHABERT AND MORRELL
TAX/TAXATION. Provides for the Ports of Louisiana tax credits. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 47:6036(C)(1)(b), (G), the introductory paragraph of (I)(1),
3 (I)(1)(c) and (2)(a) and to repeal R.S. 47:6036(K), relative to the Ports of Louisiana
4 tax credits; to streamline the approval process; to change the overall credit caps; to
5 extend the sunset date of the credit; to remove an expired reporting provision; to
6 provide for an effective date; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6036(C)(1)(b), (G), the introductory paragraph of (I)(1), (I)(1)(c)
9 and (2)(a) are hereby amended and reenacted to read as follows:
10 ยง6036. Ports of Louisiana tax credits
11 * * *
12 C. Investor tax credit.
13 (1) * * *
14 * * *
15 (b) The Investor Tax Credit provided for in this Subsection shall be granted
16 by the Department of Economic Development for a qualifying project if the
17 commissioner of administration, after approval of the Joint Legislative Committee
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1 on the Budget, and the state bond commission certifies to the secretary of the
2 department that securing the project will result in a significant positive economic
3 benefit to the state. "Significant positive economic benefit" means net positive tax
4 revenue that shall be determined by taking into account direct, indirect, and induced
5 impacts of the project based on a standard economic impact methodology utilized
6 by the commissioner, and the value of the credit, and any other state tax and financial
7 incentives that are used by the department to secure the project. If the commissioner
8 with the approval of the committee so certifies, then the Department of Economic
9 Development may grant a tax credit equal to seventy-two percent of the total capital
10 costs of such qualifying project to be taken at five percent per tax year or shall grant
11 such other amount of tax credit to be taken at such other percentage which is
12 warranted by the significant positive economic benefit determined by the
13 commissioner, but no tax credit granted for a qualifying project shall exceed one
14 million eight hundred thousand dollars per tax year. However, the total amount of
15 tax credits granted on a qualifying project shall not exceed the total cost of the
16 project. In addition, the investor tax credits granted by the department to any
17 recipient pursuant to this Section shall be limited to an amount which shall not result
18 in a reduction of tax liability by all recipients of such credits to exceed four million
19 five hundred thousand dollars in any fiscal year.
20 * * *
21 G. Termination of investor and import-export cargo tax credits.
22 The provisions of Subsection C and I of this Section shall be effective until
23 January 1, 2020 July 1, 2021, and no investor tax credit or import-export cargo tax
24 credit pursuant to the provisions of this Section shall be granted after such date.
25 * * *
26 I. Import-export cargo tax credit.
27 (1) Certification of taxpayer. Only those taxpayers who have received
28 certification from the secretary of the Department of Economic Development shall
29 be eligible to take the tax credits provided for by this Subsection and then only for
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1 the taxable year or years and for the amount provided for in the commissioner of
2 administration's certification, approved by the Joint Legislative Committee on the
3 Budget and the state bond commission, provided for in Item (2)(a)(ii) of this
4 Subsection as allocated by the secretary. The secretary shall promulgate rules in
5 accordance with the Administrative Procedure Act which establish the process by
6 which a taxpayer shall apply for certification.
7 * * *
8 (c) The secretary shall provide a statement of certification to each taxpayer
9 which he has certified as eligible to take the tax credit after approval of the Joint
10 Legislative Committee on the Budget and the state bond commission, which shall
11 contain the taxable year or years for which the taxpayer is allowed the tax credit and
12 the amount of tax credit allocated for such taxable year or years. The secretary shall
13 also transmit a copy of such statement to the secretary of the Department of
14 Revenue.
15 (2)(a)(i) For taxable years beginning on and after January 1, 2014, there shall
16 be allowed a credit against the individual income, corporation income, and
17 corporation franchise tax liability of a taxpayer who has received certification
18 pursuant to the provisions of Paragraph (1) of this Subsection;, provided that the
19 credit shall be allowed only against the tax liability of the international business
20 entity which receives the certification. The amount of the credit shall be equal to the
21 product of multiplying three dollars and sixty cents by the taxpayer's number of tons
22 of qualified cargo for the taxable year which exceeds the pre-certification tonnage
23 or the product of multiplying the number of dollars by the taxpayer's number of tons
24 of qualified cargo for the taxable year or portion of a taxable year which exceeds the
25 pre-certification tonnage which is warranted by the significant positive economic
26 benefit determined by the commissioner pursuant to Item (ii) of this Subparagraph,
27 whichever is less. For purposes of this Item, "pre-certification tonnage" means the
28 number of tons of cargo which meets the definition of qualified cargo for purposes
29 of this credit, and which was owned by the international business entity receiving the
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1 credit, were imported or exported to or from a manufacturing, fabrication, assembly,
2 distribution, processing, or warehouse facility located in Louisiana, and which were
3 so moved by way of an oceangoing vessel berthed at public port facilities in
4 Louisiana during the 2013 calendar year the calendar year prior to the year in
5 which the application is submitted. However, each tax credit granted to a taxpayer
6 shall be subject to the same limit as is provided for a qualifying project pursuant to
7 Subparagraph (C)(1)(b) of this Section. In addition, the import-export cargo tax
8 credits granted by the department to any recipient pursuant to this Section shall be
9 limited to an amount which shall not result in a reduction of tax liability by all
10 recipients of such credits to exceed four million five hundred thousand dollars in any
11 fiscal year.
12 (ii) The tax credit provided for in this Subsection shall be allowed if the
13 commissioner of administration certifies to the secretary of the Department of
14 Economic Development that provided for in this Subsection whether from the
15 increased utilization of public port facilities and other activity in Louisiana
16 associated with the import or export of the international business entities qualified
17 cargo will result in a significant positive economic benefit to the state. "Significant
18 positive economic benefit" means net positive tax revenue that shall be determined
19 by taking into account direct, indirect, and induced impacts of the port and state
20 activity based on a standard economic impact methodology utilized by the
21 commissioner, and the value of the credit, and any other state tax and financial
22 incentives that are used by the department to secure the port and state activity
23 because of the tax credit, and such certification is approved by the Joint Legislative
24 Committee on the Budget, which approval shall not be granted earlier than July 1,
25 2014, and the state bond commission.
26 * * *
27 Section 2. R.S. 47:6036(K) is hereby repealed.
28 Section 3. The provisions of this Act shall supercede and control to the extent of any
29 conflict between this Act and Act No. 125 of the 2015 Regular Session of the Legislature
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1 as amended by Act No. 29 of the 2016 First Extraordinary Session of the Legislature.
2 Section 4. This Act shall become effective upon signature by the governor or, if not
3 signed by the governor, upon expiration of the time for bills to become law without signature
4 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
5 vetoed by the governor and subsequently approved by the legislature, this Act shall become
6 effective on the day following such approval.
The original instrument was prepared by Leonore F. Heavey. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Ben Huxen.
DIGEST
SB 150 Reengrossed 2017 Regular Session Chabert
Present law provides for an investor tax credit of up to $1.8 million per project for 72% of
the capital costs associated with a qualifying port project that is approved by the commission
of administration, the Joint Legislative Committee on the Budget, and the State Bond
Commission. Proposed law removes the requirement of prior approval by the State Bond
Commission.
Present law provides for an import-export cargo tax credit of up to $1.8 million per taxpayer
at the rate of $3.60 per ton of qualified cargo that is approved by the commission of
administration, the Joint Legislative Committee on the Budget, and the State Bond
Commission. Proposed law removes the requirement of prior approval by the State Bond
Commission.
Present law defines "pre-certification tonnage" as the number of tons of qualified cargo
owned by the international business entity receiving the credit, imported or exported, and
which were moved by way of an oceangoing vessel berthed at public port facilities in this
state during the 2013 calendar year.
Proposed law retains this provision but provides that the vessel was berthed at public port
facilities in the state during the year prior to the year in which the import-export cargo credit
application is submitted.
Present law terminates both the investor credit and the import-export cargo credit on
January 1, 2020. Proposed law extends the termination date of both credits to July 1, 2021.
Present law requires the House Committee on Ways and Means and the Senate Committee
on Revenue and Fiscal Affairs to review the credit to determine if the economic benefit
provided by the credit outweighs the loss of revenue realized by the state as a result of
awarding the credit. Requires the House and Senate committees to make their
recommendations no later than March 1, 2017, to either continue the credit or to terminate
the credit. Proposed law repeals the review and reporting requirement.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6036(C)(1)(b), (G), (I)(1)(intro para), (I)(1)(c) and (2)(a); repeals R.S.
47:6036(K))
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Makes the base year the previous year for cargo credits.
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Eliminates provisions that would increase the annual program cap for the
investor and cargo credits to $6.25 million for the remainder of the program.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.