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))