2017 Regular Session ENROLLED
SENATE BILL NO. 248
BY SENATOR MORRELL
1 AN ACT
2 To amend and reenact R.S. 47:6034(C)(1)(a)(ii)(aa) and (bb), (4), and (K) and to repeal R.S.
3 47:6034(C)(1)(a)(ii)(bb) as amended by Section 5 of Act No. 125 of the 2015
4 Regular Session of the Legislature, relative to tax credits; to provide for an annual
5 credit cap for the musical and theatrical production income tax credit; to provide for
6 a termination date; to provide for an effective date; and to provide for related
7 matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:6034(C)(1)(a)(ii)(aa) and (bb), (4) and (K) are hereby amended
10 and reenacted to read as follows:
11 ยง6034. Musical and theatrical production income tax credit
12 * * *
13 C. Income tax credits for state-certified productions and state-certified
14 musical or theatrical facility infrastructure projects:
15 (1) There is hereby authorized the following types of credits against the state
16 income tax:
17 (a) * * *
18 (ii)(aa) For state-certified infrastructure projects that receive initial
19 certification on or before January 1, 2014, a base investment credit may be earned
20 for expenditures made in the state on or before January 1, 2015, for the construction,
21 repair, or renovation of a state-certified musical or theatrical facility infrastructure
22 project or for investments made by a company or a financier in such infrastructure
23 project which are, in turn, expended for such construction, repair, or renovation, not
24 to exceed ten million dollars per state-certified infrastructure project, under
ACT No. 396
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1 conditions provided for in this Item. No more than sixty million dollars in tax credits
2 under this Section shall be granted for infrastructure projects per year.
3 (bb)(I) For state-certified higher education musical or theatrical infrastructure
4 projects that receive initial certification before July 1, 2015, a base investment credit
5 may be earned for expenditures made in the state on or before January 1, 2022, for
6 the construction, repair, or renovation of a new state-certified higher education
7 musical or theatrical facility infrastructure project, or for investments made by a
8 company or a financier in such infrastructure project that are, in turn, expended for
9 such construction, repair, or renovation. No more than ten million dollars in tax
10 credits per project or sixty million dollars total in tax credits shall be granted for
11 state-certified higher education musical or theatrical infrastructure projects for
12 projects that receive initial certification before July 1, 2015. Twenty-five percent of
13 the total base investment provided for in the initial certification letter of a state-
14 certified higher education musical or theatrical infrastructure project must be
15 expended on or before January 1, 2020, in order for the project to earn credits for the
16 remaining estimated base investment provided for in the initial certification letter,
17 as expenditures are made in the state on or before January 1, 2022. No credits shall
18 be certified until the state-certified higher education musical or theatrical
19 infrastructure project is complete. The initial certification letter shall be effective for
20 qualified expenditures made no more than six months prior to the date of application.
21 State-certified higher education musical or theatrical infrastructure projects shall not
22 be subject to the provisions of Subitem (cc) of this Item nor shall such projects be
23 subject to the provisions of Subsection H of this Section.
24 (II) For state-certified higher education musical or theatrical infrastructure
25 projects that receive initial certification on or after July 1, 2015, and on or before
26 January 1, 2018, a base investment credit may be earned for expenditures made in
27 the state on or before January 1, 2022, for the construction, repair, or renovation of
28 a new state-certified higher education musical or theatrical facility infrastructure
29 project, or for investments made by a company or a financier in such infrastructure
30 project that are, in turn, expended for such construction, repair, or renovation. No
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1 more than seven million two hundred thousand dollars in tax credits per project or
2 forty-three million two hundred thousand dollars total in tax credits shall be granted
3 for state-certified higher education musical or theatrical infrastructure projects that
4 receive initial certification on or after July 1, 2015. Twenty-five percent of the total
5 base investment provided for in the initial certification letter of a state-certified
6 higher education musical or theatrical infrastructure project must be expended on or
7 before January 1, 2020, in order for the project to earn credits for the remaining
8 estimated base investment provided for in the initial certification letter, as
9 expenditures are made in the state on or before January 1, 2022. No credits shall be
10 certified until the state-certified higher education musical or theatrical infrastructure
11 project is complete. The initial certification letter shall be effective for qualified
12 expenditures made no more than six months prior to the date of application. State-
13 certified higher education musical or theatrical infrastructure projects shall not be
14 subject to the provisions of Subitem (cc) of this Item nor shall such projects be
15 subject to the provisions of Subsection H of this Section.
16 * * *
17 (4)(a) Beginning July 1, 2017, the total amount of tax credits granted by
18 the department in any fiscal year shall not exceed ten million dollars.
19 (b) For applications received on or after July 1, 2017, no more than one
20 million dollars in tax credits shall be granted per project.
21 (c) The granting of credits under this Section shall be on a first-come, first-
22 served basis, with fifty percent of total tax credits available to be granted
23 annually reserved for state-certified musical or theatrical productions by
24 approved nonprofit organizations, as further provided by rules promulgated by
25 the department. If the total amount of credits applied for in any particular year
26 exceeds the aggregate amount of tax credits allowed for that year, the excess shall
27 be treated as having been applied for on the first day of the subsequent year. If the
28 total amount of credits granted in any fiscal year is less than the amount
29 available to be granted, any residual credit remaining shall be available to be
30 granted in subsequent fiscal years.
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1 * * *
2 K. Commencing no later than January 31, 2016, the House Committee on
3 Ways and Means and the Senate Committee on Revenue and Fiscal Affairs shall
4 review the credit authorized pursuant to the provisions of this Section to determine
5 if the economic benefit provided by such credit outweighs the loss of revenue
6 realized by the state as a result of awarding such credit. The House and Senate
7 committees shall make a specific recommendation no later than March 1, 2017, to
8 either continue the credit or to terminate the credit. No credit shall be granted
9 pursuant to this Section for applications received on or after July 1, 2025.
10 Section 2. R.S. 47:6034(C)(1)(a)(ii)(bb) as amended by Section 5 of Act No. 125 of
11 the 2015 Regular Session of the Legislature is hereby repealed.
12 Section 3. This Act shall become effective on July 1, 2017.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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