2017 Regular Session ENROLLED
SENATE BILL NO. 150
BY SENATORS CHABERT AND MORRELL AND REPRESENTATIVE LEGER
1 AN ACT
2 To amend and reenact R.S. 47:6036(C)(1)(b) as amended by Section 2 of Act No. 125 of the
3 2015 Regular Session of the Legislature, (G), the introductory paragraph of (I)(1),
4 (I)(1)(c) and (2)(a) and to repeal R.S. 47:6036(C)(1)(b) as amended by Section 5 of
5 Act No. 125 of the 2015 Regular Session of the Legislature and R.S. 47:6036(K),
6 relative to the Ports of Louisiana tax credits; to streamline the approval process; to
7 change the overall credit caps; to extend the sunset date of the credit; to remove an
8 expired reporting provision; to provide for an effective date; and to provide for
9 related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 47:6036(C)(1)(b) as amended by Section 2 of Act No. 125 of the
12 2015 Regular Session of the Legislature, (G), the introductory paragraph of (I)(1), (I)(1)(c)
13 and (2)(a) are hereby amended and reenacted to read as follows:
14 ยง6036. Ports of Louisiana tax credits
15 * * *
16 C. Investor tax credit.
17 (1) * * *
18 * * *
19 (b) The Investor Tax Credit provided for in this Subsection shall be granted
20 by the Department of Economic Development for a qualifying project if the
21 commissioner of administration, after approval of the Joint Legislative Committee
22 on the Budget, and the state bond commission certifies to the secretary of the
23 department that securing the project will result in a significant positive economic
ACT No. 245
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1 benefit to the state. "Significant positive economic benefit" means net positive tax
2 revenue that shall be determined by taking into account direct, indirect, and induced
3 impacts of the project based on a standard economic impact methodology utilized
4 by the commissioner, and the value of the credit, and any other state tax and financial
5 incentives that are used by the department to secure the project. If the commissioner
6 with the approval of the committee so certifies, then the Department of Economic
7 Development may grant a tax credit equal to seventy-two percent of the total capital
8 costs of such qualifying project to be taken at five percent per tax year or shall grant
9 such other amount of tax credit to be taken at such other percentage which is
10 warranted by the significant positive economic benefit determined by the
11 commissioner, but no tax credit granted for a qualifying project shall exceed one
12 million eight hundred thousand dollars per tax year. However, the total amount of
13 tax credits granted on a qualifying project shall not exceed the total cost of the
14 project. In addition, the investor tax credits granted by the department to any
15 recipient pursuant to this Section shall be limited to an amount which shall not result
16 in a reduction of tax liability by all recipients of such credits to exceed four million
17 five hundred thousand dollars in any fiscal year.
18 * * *
19 G. Termination of investor and import-export cargo tax credits.
20 The provisions of Subsection C and I of this Section shall be effective until
21 January 1, 2020 July 1, 2021, and no investor tax credit or import-export cargo tax
22 credit pursuant to the provisions of this Section shall be granted after such date.
23 * * *
24 I. Import-export cargo tax credit.
25 (1) Certification of taxpayer. Only those taxpayers who have received
26 certification from the secretary of the Department of Economic Development shall
27 be eligible to take the tax credits provided for by this Subsection and then only for
28 the taxable year or years and for the amount provided for in the commissioner of
29 administration's certification, approved by the Joint Legislative Committee on the
30 Budget and the state bond commission, provided for in Item (2)(a)(ii) of this
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1 Subsection as allocated by the secretary. The secretary shall promulgate rules in
2 accordance with the Administrative Procedure Act which establish the process by
3 which a taxpayer shall apply for certification.
4 * * *
5 (c) The secretary shall provide a statement of certification to each taxpayer
6 which he has certified as eligible to take the tax credit after approval of the Joint
7 Legislative Committee on the Budget and the state bond commission, which shall
8 contain the taxable year or years for which the taxpayer is allowed the tax credit and
9 the amount of tax credit allocated for such taxable year or years. The secretary shall
10 also transmit a copy of such statement to the secretary of the Department of
11 Revenue.
12 (2)(a)(i) For taxable years beginning on and after January 1, 2014, there shall
13 be allowed a credit against the individual income, corporation income, and
14 corporation franchise tax liability of a taxpayer who has received certification
15 pursuant to the provisions of Paragraph (1) of this Subsection;, provided that the
16 credit shall be allowed only against the tax liability of the international business
17 entity which receives the certification. The amount of the credit shall be equal to the
18 product of multiplying three dollars and sixty cents by the taxpayer's number of tons
19 of qualified cargo for the taxable year which exceeds the pre-certification tonnage
20 or the product of multiplying the number of dollars by the taxpayer's number of tons
21 of qualified cargo for the taxable year or portion of a taxable year which exceeds the
22 pre-certification tonnage which is warranted by the significant positive economic
23 benefit determined by the commissioner pursuant to Item (ii) of this Subparagraph,
24 whichever is less. For purposes of this Item, "pre-certification tonnage" means the
25 number of tons of cargo which meets the definition of qualified cargo for purposes
26 of this credit, and which was owned by the international business entity receiving the
27 credit, were imported or exported to or from a manufacturing, fabrication, assembly,
28 distribution, processing, or warehouse facility located in Louisiana, and which were
29 so moved by way of an oceangoing vessel berthed at public port facilities in
30 Louisiana during the 2013 calendar year the calendar year prior to the year in
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1 which the application is submitted. However, each tax credit granted to a taxpayer
2 shall be subject to the same limit as is provided for a qualifying project pursuant to
3 Subparagraph (C)(1)(b) of this Section. In addition, the import-export cargo tax
4 credits granted by the department to any recipient pursuant to this Section shall be
5 limited to an amount which shall not result in a reduction of tax liability by all
6 recipients of such credits to exceed four million five hundred thousand dollars in any
7 fiscal year.
8 (ii) The tax credit provided for in this Subsection shall be allowed if the
9 commissioner of administration certifies to the secretary of the Department of
10 Economic Development that provided for in this Subsection whether from the
11 increased utilization of public port facilities and other activity in Louisiana
12 associated with the import or export of the international business entities qualified
13 cargo will result in a significant positive economic benefit to the state. "Significant
14 positive economic benefit" means net positive tax revenue that shall be determined
15 by taking into account direct, indirect, and induced impacts of the port and state
16 activity based on a standard economic impact methodology utilized by the
17 commissioner, and the value of the credit, and any other state tax and financial
18 incentives that are used by the department to secure the port and state activity
19 because of the tax credit, and such certification is approved by the Joint Legislative
20 Committee on the Budget, which approval shall not be granted earlier than July 1,
21 2014, and the state bond commission.
22 * * *
23 Section 2. R.S. 47:6036(C)(1)(b) as amended by Section 5 of Act No. 125 of the
24 2015 Regular Session of the Legislature and R.S. 47:6036(K) are hereby repealed.
25 Section 3. The provisions of this Act shall supersede and control to the extent of any
26 conflict between this Act and Act No. 125 of the 2015 Regular Session of the Legislature
27 as amended by Act No. 29 of the 2016 First Extraordinary Session of the Legislature.
28 Section 4. This Act shall become effective upon signature by the governor or, if not
29 signed by the governor, upon expiration of the time for bills to become law without signature
30 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
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1 vetoed by the governor and subsequently approved by the legislature, this Act shall become
2 effective on the day following such approval.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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