RÉSUMÉ DIGEST
SB 14 2020 Second Extraordinary Session Johns
Prior law provided for the Louisiana New Markets Jobs Act tax credit that may be claimed
against insurance premium tax. Eligibility for the credit is based on the investment of private
capital in a low-income community business located in La.
Prior law defined "qualified active low-income community business" as an entity which
under federal law is defined as a business located in either a census tract with a poverty rate
of at least 20% or a census tract with a median income that does not exceed 80% of the
benchmark median income and has an applicable NAICS code of 11, 21, 23, 31, 32, 33, 42,
48, 49, 54, 56, 62, 72, or 81 and no more than 250 employees or the number of employees
set forth for the business's NAICS code sector.
New law further defines "qualified active low-income community business" to include
businesses in the recovery zone that are not located in a low-income community and defines
"recovery zone" as those parishes declared by FEMA to be eligible for both individual and
public assistance due to Hurricane Laura.
Prior law included a recapture condition for investments made on or after August 1, 2020,
if there has been a failure to invest an amount equal to 100% of the purchase price of the
investment within nine months of the issuance of the investment or less than 50% of the
purchase price was invested in "impact businesses".
Prior law defined "impact business" as qualified active low-income community business
either located in a rural parish (population of less than 100,000) or more than 50% owned
by women, minorities, or military veterans.
New law adds businesses located in the recovery zone to the definition of "impact business".
Effective upon signature of the governor (October 16, 2020).
(Amends R.S. 47:6016.1(B)(4), (6), (7), (8), (9), (10), and (11); adds R.S. 47:6016.1(B)(12))