DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 16 Engrossed 2020 First Extraordinary Session Echols
Abstract: Establishes an additional income and franchise tax credit for 30% of eligible costs and
expenses incurred during the rehabilitation of a historic structure included on the National
Register of Historic Places. Further limits eligible rehabilitation expenses from exceeding
$2M and caps the annual amount of credit a taxpayer may claim at $600,000.
Present law authorizes an income and corporation franchise tax credit for the amount of eligible costs
and expenses incurred during the rehabilitation of a historic structure located in a downtown
development district or a cultural district. The amount of the credit is 20% of the eligible costs and
expenses of the rehabilitation incurred before Jan. 1, 2022, and no taxpayer shall claim more than
$5 million of credit annually for any number of structures rehabilitated within a particular downtown
development or cultural district. The credit is effective for taxable years ending prior to Jan. 1, 2022.
Proposed law retains present law but establishes, beginning August 1, 2020, an additional income
and franchise tax credit for eligible costs and expenses incurred during the rehabilitation of a historic
structure included on the National Register of Historic Places as maintained by the National Park
Service. The amount of the credit is 30% of the eligible costs and expenses of rehabilitation incurred
on or after August 1, 2020, and before June 30, 2026. Further limits eligible costs and expenses of
rehabilitation from exceeding $2M and caps the annual amount of credit a taxpayer may claim
pursuant to proposed law at $600,000.
Effective July 1, 2020.
(Amends R.S. 47:6019(A)(1)(a))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Specify that costs and expenses that will be eligible for the tax credit shall be those
incurred or expended on projects that begin on or after August 1, 2020.
2. Change the effective date for establishment of this 30% tax credit from July 1, 2020, to
August 1, 2020.
3. Decrease the maximum amount of costs and expenses that can be incurred in order to be eligible for the tax credit from $3.25M to $2M.
4. Decrease the annual per taxpayer cap for participation in this 30% tax credit from
$750,000 to $600,000.