HLS 21RS-986 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 445
BY REPRESENTATIVE BOURRIAQUE
TAX CREDITS: Changes the sound recording investor tax credit into a refundable tax
credit
1 AN ACT
2To amend and reenact R.S. 47:6023(C)(4)(b), relative to the sound recording investor tax
3 credit; to eliminate certain restrictions regarding the reduction of a taxpayer's tax
4 liability; to authorize the payment of refunds under certain circumstances; to provide
5 for certain requirements and limitations; to provide for an effective date; and to
6 provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6023(C)(4)(b) is hereby amended and reenacted to read as
9follows:
10 ยง6023. Sound recording investor tax credit
11 * * *
12 C. Investor tax credit; state-certified productions.
13 * * *
14 (4)
15 * * *
16 (b) Notwithstanding the amount of the credit earned by the investor pursuant
17 to this Section, application of tax credits earned and claimed against an investor's
18 income tax liability shall never reduce the investor's income tax liability below fifty
19 percent of the amount of the liability prior to application of the credit. Any excess
20 credit may be carried forward for up to five years and shall be applied against the
21 subsequent income tax liability of the taxpayer. If the amount of the credit authorized
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-986 ORIGINAL
HB NO. 445
1 pursuant to the provisions of this Section exceeds the taxpayer's tax liability for the
2 tax year, the excess credit amount shall be refunded to the taxpayer. The secretary
3 shall make refunds to the taxpayer in the amount to which he is entitled from the
4 current collections of the taxes collected pursuant to Chapter 1 and Chapter 5 of
5 Subtitle II of this Title.
6 * * *
7 Section 2. This Act shall become effective upon signature by the governor or, if not
8signed by the governor, upon expiration of the time for bills to become law without signature
9by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
10vetoed by the governor and subsequently approved by the legislature, this Act shall become
11effective on the day following such approval.
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 445 Original 2021 Regular Session Bourriaque
Abstract: Changes the sound recording investor tax credit from a non-refundable tax credit
to a refundable tax credit.
Present law authorizes a state income tax credit for investments made in state-certified
productions until July 1, 2026. The tax credit is earned by investors at the time expenditures
are certified by the Dept. of Economic Development according to the total base investment
certified for the sound recording production company per calendar year. The aggregate
amount of credits that can be certified each year is limited to $2,160,000; however, 50% of
the credits certified each year shall be reserved for Qualified Music Companies.
Present law prohibits the application of tax credits earned and claimed against an investor's
tax liability from reducing the investor's income tax liability below 50% prior to application
of the credit, regardless of the amount of the credit the investor earned. Further authorizes
the investor to carry forward unused tax credits for up to five years to be applied against the
investor's tax liability in subsequent years.
Proposed law changes present law to delete the limitation on the amount of credit that may
be used in any taxable year to offset the investor's tax liability and converts the tax credit
from a credit that requires the carry forward of unused credits for up to five years to a
refundable tax credit wherein the amount of the tax credit which exceeds the taxpayer's
liability is refunded to the taxpayer. Proposed law requires the secretary of the Dept. of
Revenue to make refunds from the current income and corporate franchise tax collections.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6023(C)(4)(b))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.