SLS 17RS-207 ENGROSSED
2017 Regular Session
SENATE BILL NO. 48
BY SENATOR MORRELL
TAX/TAXATION. Provides for the termination of the credit for purchase of qualified
recycling equipment or service contracts. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 47:6005(C)(1), (D)(1), and (G) and to repeal R.S. 47:6005(C)(1)
3 and (D)(1) as amended by Section 5 of Act No. 125 of the 2015 Regular Session of
4 the Legislature as amended by Section 8 of Act No. 29 of the 2016 First
5 Extraordinary Session of the Legislature, relative to tax credits; to provide for the
6 termination of the tax credit for qualified new recycling manufacturing or process
7 equipment and service contracts; to provide for an effective date; and to provide for
8 related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:6005(C)(1), (D)(1), and (G) are hereby amended and reenacted
11 to read as follows:
12 §6005. Qualified new recycling manufacturing or process equipment and/or service
13 contracts
14 * * *
15 C.(1) A taxpayer who purchases qualified new recycling manufacturing or
16 process equipment or qualified service contracts, or both, as defined in this Section
17 and certified by the secretary of the Department of Environmental Quality to be used
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 48
SLS 17RS-207 ENGROSSED
1 or performed exclusively in this state before January 1, 2020, shall be entitled to
2 a credit against any income and corporation franchise taxes imposed by the state in
3 an amount equal to fourteen and four-tenths of one percent of the cost of the new
4 recycling manufacturing or process equipment or qualified service contract, or both,
5 less the amount of any other tax credits received for the purchase of such equipment
6 or contract, or both.
7 * * *
8 D.(1) The amount of the credit claimed in the taxable period for which
9 certification of equipment is received, and the amount of credit claimed therefor in
10 each taxable period thereafter, shall not exceed twenty percent of the amount of the
11 total credit allowable. In no case shall the credit claimed exceed fifty percent of the
12 tax liability which that would be otherwise due for that taxable period. Any unused
13 credit for a taxable year in which a credit is allowed may be carried forward to
14 subsequent years until the credit is exhausted. Total credits certified by the secretary
15 of the Department of Environmental Quality in any calendar year shall not exceed
16 three million six hundred thousand dollars.
17 * * *
18 G. Commencing no later than January 31, 2016, the House Committee on
19 Ways and Means and the Senate Committee on Revenue and Fiscal Affairs shall
20 review the credit authorized pursuant to the provisions of this Section to determine
21 if the economic benefit provided by such credit outweighs the loss of revenue
22 realized by the state as a result of awarding such credit. The House and Senate
23 committees shall make a specific recommendation no later than March 1, 2017, to
24 either continue the credit or to terminate the credit After December 31, 2019, no
25 credits under this Section shall be earned or granted for purchases of recycling
26 manufacturing or process equipment, or for expenditures made under existing
27 service contracts, or for new contracts or contract renewals entered into after
28 December 31, 2019.
29 Section 2. R.S. 47:6005(C)(1) and (D)(1) as amended by Section 5 of Act No. 125
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 48
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1 of the 2015 Regular Session of the Legislature as amended by Section 8 of Act No. 29 of the
2 2016 First Extraordinary Session of the Legislature are hereby repealed.
3 Section 3. This Act shall become effective upon signature by the governor or, if not
4 signed by the governor, upon expiration of the time for bills to become law without signature
5 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
6 vetoed by the governor and subsequently approved by the legislature, this Act shall become
7 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 48 Engrossed 2017 Regular Session Morrell
Present law provides a tax credit against income and corporation franchise taxes imposed
by the state on the purchase of qualified new recycling manufacturing or process equipment
or qualified service contracts. Provides that this credit, which is effective through June 30,
2018, equals 14.4% and then equals 20% on July 1, 2018.
Proposed law retains the 14.4% credit through June 30, 2018, but removes the credit increase
to 20%. Proposed law provides that in order to receive this credit, the purchase of qualified
new recycling manufacturing or process equipment or qualified service contracts must occur
on or before December 31, 2019, after which the credit is terminated.
Present law provides that the amount of the credit claimed in the taxable period for which
certification of equipment is received, and the amount of credit claimed therefor in each
taxable period thereafter, shall not exceed 20% of the amount of the total credit allowable
and that in no case shall the credit claimed exceed 50% of the tax liability which would
otherwise be due for that taxable period. Proposed law retains these provisions.
Present law limits the total credits certified by the secretary of the Department of
Environmental Quality in any calendar year to $3.6 million and authorizes that any unused
credit may be carried forward to subsequent years until the credit is exhausted.
Present law is effective through June 30, 2018, and increases the annual limitation from $3.6
million to $5 million effective July 1, 2018. Proposed law removes the July 1, 2018, increase
in the credit limitation and provides that the $3.6 million limitation is effective until
December 31, 2019.
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 replaces the review and reporting requirement with a provision that
terminates the program on December 31, 2019.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6005(C)(1), (D)(1), and (G); repeals R.S. 47:6005(C)(1) and (D)(1) as
amended by Acts 2015, No. 125 §5 as amended by Acts 2016 1st E.S., No. 29 §8)
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.