SSHB445 416 3410
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 445 2021 Regular Session Bourriaque
TAX CREDITS: Changes the sound recording investor tax credit into a refundable tax credit
Synopsis of Senate Amendments
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 authorize a carry
forward of unused credits for up to five years for applications received before
July 1, 2021.
2.Removes provisions of proposed law that converted the tax credit to a
refundable tax credit and required the secretary of the Dept. of Revenue to make
refunds from the current income tax collections.
3.At the time of final certification of credits, requires a Quality 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 Quality
Music Companies from the current income tax collections.
Digest of Bill as Finally Passed by Senate
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 (QMCs).
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.
Proposed law requires a QMC at the time of final certification of credits to transfer credits
to the Dept. of Revenue (DOR) for 85% of the value of the credits for applications received
on and after July 1, 2021.
Proposed law requires the secretary of DOR to make payments to the QMC 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))
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