GREEN SHEET REDIGEST
HB 445 2021 Regular Session Bourriaque
TAX CREDITS. Changes the sound recording investor tax credit into a refundable tax
credit.
DIGEST
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.
Proposed law retains present law.
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 retains present law for applications received before July 1, 2021.
Proposed law authorizes a qualified music company to transfer credits to the Dept. of
Revenue for 85% of the value of the credits for applications received on and after July 1,
2021.
Proposed law requires the secretary of the Dept. of Revenue to make payments to the
Qualified Music Company from the current income tax collections.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6023(C)(4)(b))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Delete requirement that tax credits be paid from current corporate franchise tax
collections.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the engrossed bill
1. Reinstates present law provisions that limit the amount of credit that may be used
in any taxable year to offset the investor's tax liability and authorizes a carry
forward of unused credits for up to five years for applications received before
July 1, 2021.
2. Removes provisions converting the tax credit to a refundable tax credit and
requiring the secretary of the Dept. of Revenue to make refunds from the current
income tax collections.
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Prepared by Curry J. Lann. 3. Authorizes a qualified music company to transfer credits to the Dept. of Revenue
for 85% of the value of the credits for applications received on and after July 1,
2021.
4. Requires the secretary of the Dept. of Revenue to make payments to the Qualified
Music Company from the current income tax collections.
5. Makes technical corrections.
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Prepared by Curry J. Lann.