HLS 23RS-638 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 386
BY REPRESENTATIVE BEAULLIEU
TAX CREDITS: Establishes a tax credit for infant adoptions and the Strong Louisiana
Families Tax Credit for donations to certain social service organizations
1 AN ACT
2To amend and reenact R.S. 47:297.21(A) and (C), to enact R.S. 47:297.21(D) and Chapter
3 3-A of Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950, to be
4 comprised of R.S. 47:6311 through 6318, and to repeal R.S. 47:293(9)(a)(xxiv),
5 relative to income tax credits; to authorize an income tax credit for certain infant
6 adoptions; to repeal an income tax deduction for those adoptions; to provide for the
7 amount of the infant adoption credit; to provide for refundability of the infant
8 adoption credit; to authorize an income tax credit for donations to certain charitable
9 organizations that provide social services; to name the credit the Strong Louisiana
10 Families Tax Credit; to establish the tax credit as a nonrefundable credit; to provide
11 for the amount of the credit; to authorize carrying forward of the credit; to provide
12 for claiming of the credit by corporations, individuals, estates, trusts, and partners
13 and members of entities not taxed as corporations; to provide for qualifications for
14 the credit; to provide for designation by the Department of Children and Family
15 Services of charitable organizations eligible to receive contributions qualifying for
16 the credit; to establish other duties of the Department of Children and Family
17 Services with respect to the credit; to establish duties of charitable organizations
18 receiving contributions qualifying for the credit; to provide for limitations with
19 respect to eligible charitable organizations; to provide for restrictions with respect
20 to eligible contributions; to require the secretaries of the Department of Revenue and
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1 the Department of Children and Family Services, respectively, to promulgate
2 administrative rules; to provide for definitions; to provide for applicability; to
3 provide for termination; to provide for an effective date; and to provide for related
4 matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:297.21(A) and (C) are hereby amended and reenacted and R.S.
747:297.21(D) and Chapter 3-A of Subtitle VII of Title 47 of the Louisiana Revised Statutes
8of 1950, comprised of R.S. 47:6311 through 6318, are hereby enacted to read as follows:
9 §297.21. Tax deduction credit; private adoption of certain infants
10 A.(1) There shall be allowed a deduction from tax table income a refundable
11 credit against the tax imposed by this Chapter for a taxpayer who adopts an infant
12 who is unrelated to the taxpayer and who is less than one year of age through a
13 private agency as defined in Children's Code Article 1169 or adopts an infant who
14 is unrelated to the taxpayer and who is less than one year of age through an attorney.
15 For purposes of this Section, the age of the infant shall be determined at the time of
16 the adoption placement. The amount of the deduction credit authorized by this
17 Section shall be equal to five thousand dollars and shall be applicable apply in the
18 year the adoption becomes final. The amount of the deduction credit authorized by
19 this Section shall not exceed the total taxable income of the taxpayer.
20 (2) The deduction authorized pursuant to the provisions of credit authorized
21 by this Section shall be in lieu of the dependency deduction authorized in R.S.
22 47:294.
23 * * *
24 C. If the amount of the credit authorized pursuant to the provisions of this
25 Section exceeds the amount of the taxpayer's tax liability for the taxable year, the
26 excess tax credit amount shall constitute an overpayment as defined in R.S.
27 47:1621(A), and the secretary of the Department of Revenue shall make a refund of
28 the overpayment from the current collections of the taxes imposed pursuant to this
29 Chapter. The right to a refund shall not be subject to the requirements of R.S.
30 47:1621(B).
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1 D. The secretary of the Department of Revenue may promulgate rules in
2 accordance with the Administrative Procedure Act to implement the provisions of
3 this Section, including rules related to the submission of documentation when
4 claiming the deduction credit.
5 * * *
6 CHAPTER 3-A. STRONG LOUISIANA FAMILIES TAX CREDIT
7 §6311. Definitions
8 For purposes of this Chapter, the following terms shall have the meanings
9 ascribed to them in this Section:
10 (1) "Eligible charitable organization" means an organization designated by
11 the Department of Children and Family Services as eligible to receive contributions
12 qualifying a taxpayer for the tax credit provided for in this Chapter.
13 (2) "Eligible contribution" means a monetary contribution from a taxpayer,
14 subject to applicable restrictions provided in this Chapter, to an eligible charitable
15 organization.
16 (3) "Governmental agency" means any of the following entities:
17 (a) This state and any agency, department, board, commission, or other
18 instrumentality thereof.
19 (b) Any political subdivision of this state and any agency, department, board,
20 commission, or other instrumentality of a political subdivision of this state.
21 (c) Any school board or special district or authority.
22 (d) The federal government of the United States and any agency, department,
23 board, commission, or other instrumentality thereof.
24 §6312. Strong Louisiana Families Tax Credit; amount of credit; duplication of tax
25 benefits prohibited; carry-forward authorized
26 A. There shall be allowed a nonrefundable credit against individual or
27 corporate income tax, to be known as the Strong Louisiana Families Tax Credit, for
28 eligible contributions that a Louisiana taxpayer makes during a taxable year to an
29 eligible charitable organization. The amount of the credit shall be equal to the
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1 amount of eligible contributions to the eligible charitable organization or fifty
2 thousand dollars, whichever is less.
3 B.(1) The total amount of credits granted by the Department of Revenue
4 pursuant to the provisions of this Chapter shall not exceed ten million dollars per
5 calendar year.
6 (2) The granting of tax credits authorized by this Section shall be on a
7 first-come, first-served basis. If the total amount of credits claimed in a particular
8 calendar year exceeds the amount of tax credits authorized for that year, the
9 Department of Revenue shall treat the excess as having been applied for on the first
10 day of the subsequent year. The department shall treat all requests received on the
11 same business day as received at the same time. If the aggregate amount of the
12 requests received on a single business day exceeds the total amount of available tax
13 credits, the department shall approve tax credits on a pro rata basis.
14 C. The tax credit authorized by this Section may be used in addition to any
15 federal tax credit or deduction earned for the same donation. However, a taxpayer
16 shall not receive any other state tax credit, exemption, exclusion, deduction, rebate,
17 or other state tax benefit for a donation for which the taxpayer has received a tax
18 credit pursuant to this Chapter.
19 D. If the tax credit amount earned in accordance with this Chapter in a
20 taxable year exceeds the total tax liability of a taxpayer in that year, the amount of
21 the credit not used as an offset against the taxpayer's tax liability in the taxable year
22 may be carried forward as a credit against subsequent income tax liabilities for a
23 period not to exceed five taxable years.
24 §6313. Application and claiming of credit
25 The credit authorized in this Chapter may be claimed by corporations,
26 individuals, and other entities in accordance with the following provisions:
27 (1) Individuals, estates, and trusts shall claim their share of any credit on
28 their income tax return.
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1 (2) Entities not taxed as corporations shall claim their share of any credit on
2 the returns of the partners or members.
3 (3) Corporate partners or members shall claim their share of any credit on
4 their corporation income tax returns.
5 (4) Individual partners or members shall claim their share of any credit on
6 their individual income tax returns.
7 (5) Partners or members that are estates or trusts shall claim their share of
8 any credit on their fiduciary income tax returns.
9 §6314. Designation of eligible charitable organizations; duties of the Department
10 of Children and Family Services
11 A. The Department of Children and Family Services, referred to hereafter
12 in this Subsection as the "department", shall designate as an eligible charitable
13 organization any organization that meets all of the following requirements:
14 (1) The organization is exempt from federal income taxation under Section
15 501(c)(3) of the Internal Revenue Code.
16 (2) The organization is domiciled in this state and incorporated as a nonprofit
17 corporation under the provisions of R.S. 12:201 et seq.
18 (3) The organization provides any of the following services:
19 (a) Services to prevent child abuse, neglect, abandonment, or exploitation.
20 (b) Services to assist fathers in learning and improving parenting skills or to
21 encourage greater engagement of absentee fathers in their children's lives.
22 (c) Furnishing of books to the homes of children who are eligible for a
23 federal free or reduced-price meals program or who test below grade level in
24 kindergarten through grade five.
25 (d) Services to assist families with children who have a chronic illness or a
26 physical, intellectual, developmental, or emotional disability.
27 (e) Workforce development services for families of children eligible for a
28 federal free or reduced-price meals program.
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1 (4) The organization provides to the department accurate information
2 concerning its operations. Such information shall include, at a minimum, all of the
3 following:
4 (a) A description of any services listed in Paragraph (3) of this Subsection
5 that the organization provides.
6 (b) The total number of individuals who received assistance from the
7 organization through services listed in Paragraph (3) of this Subsection during the
8 last calendar year.
9 (c) The total number of individuals who received assistance from the
10 organization during the last calendar year as a result of eligible contributions made
11 to the organization in accordance with this Chapter.
12 (d) Basic financial information regarding the organization including
13 information on financing the costs of all services listed in Paragraph (3) of this
14 Subsection that the organization provides.
15 (e) Information concerning the outcomes of any services listed in Paragraph
16 (3) of this Subsection that the organization provides.
17 (f) Contact information for executive-level staff of the organization.
18 (5) The organization annually submits to the department a statement, signed
19 under penalty of perjury by a current officer of the organization, affirming that the
20 organization meets all criteria to qualify as an eligible charitable organization, has
21 fulfilled its responsibilities as required by R.S. 47:6315 for the previous fiscal year
22 if it received eligible contributions during that year, and intends to fulfill its
23 responsibilities during the upcoming year.
24 (6) The organization provides all documentation requested by the department
25 to verify its status as an eligible charitable organization or compliance with the
26 applicable requirements of this Chapter.
27 B. The Department of Children and Family Services shall not designate as
28 an eligible charitable organization any organization that meets either of the following
29 criteria:
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1 (1) The organization provides abortions or pays for or provides coverage for
2 abortions.
3 (2) In the prior fiscal year, the organization received more than fifty percent
4 of its total annual revenue from one or more governmental agencies, either directly
5 or through one or more contractors of any governmental agency.
6 C. The Department of Children and Family Services shall do all of the
7 following with respect to organizations that it designates as eligible charitable
8 organizations in accordance with this Section:
9 (1) Annually redesignate eligible charitable organizations that have complied
10 with all requirements of this Section.
11 (2)(a) Remove the designation of organizations that fail to meet all
12 requirements of this Section.
13 (b) An organization that has had its designation removed pursuant to
14 Subparagraph (a) of this Paragraph may reapply to the Department of Children and
15 Family Services for designation as an eligible charitable organization. The
16 department shall redesignate such organization if it meets the applicable
17 requirements of this Chapter and demonstrates through its application that all factors
18 leading to the removal of its eligible charitable organization designation have been
19 adequately addressed.
20 (3) Publish information regarding the Strong Louisiana Families Tax Credit
21 program and eligible charitable organizations on its website. The page of the
22 department's website providing this information shall, at a minimum, feature all of
23 the following:
24 (a) The requirements and process for becoming designated or redesignated
25 as an eligible charitable organization.
26 (b) A list of all eligible charitable organizations that are currently designated
27 by the department along with the information provided to the department in
28 accordance with Paragraph (A)(4) of this Section for each organization, respectively.
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1 D. The Department of Children and Family Services shall compel the return
2 of monies donated to an eligible charitable organization through eligible
3 contributions if that organization fails to comply with the requirements of this
4 Section. Eligible charitable organizations required by the provisions of this
5 Subsection to return donated monies shall be ineligible to receive contributions
6 pursuant to this Chapter for a period of ten years after final action by the state to
7 compel the return of those monies.
8 §6315. Responsibilities of eligible charitable organizations
9 An eligible charitable organization that receives an eligible contribution shall
10 comply with all of the following requirements:
11 (1) Obtain state and national criminal history record information from the
12 Louisiana Bureau of Criminal Identification and Information of the office of state
13 police and the Federal Bureau of Investigation on each staff member and volunteer
14 who works directly with children in any program funded wholly or partly with
15 monies received through eligible contributions. Additionally, the organization shall
16 perform a check of the Dru Sjodin National Sex Offender Public Website on each
17 staff member and volunteer who works directly with children in any program funded
18 wholly or partly with such monies.
19 (2) Expend the entirety of the eligible contribution on providing to Louisiana
20 residents one or more of the types of services listed in R.S. 47:6314(A)(3).
21 (3) Annually submit all of the following to the Department of Children and
22 Family Services:
23 (a) An audit of the eligible charitable organization conducted by an
24 independent certified public accountant in accordance with generally accepted
25 auditing standards. The audit report shall include a report on financial statements of
26 the organization presented in accordance with generally accepted accounting
27 principles. The organization shall provide the audit report to the Department of
28 Children and Family Services within one hundred eighty days after completion of its
29 fiscal year.
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1 (b) A copy of the eligible charitable organization's most recent Return of
2 Organization Exempt from Income Tax form (Form 990) filed with the Internal
3 Revenue Service.
4 (4) Notify the Department of Children and Family Services within five
5 business days after the eligible charitable organization ceases to meet any eligibility
6 requirement provided in this Chapter or fails to fulfill its responsibilities as
7 prescribed in this Section.
8 (5) Upon receipt of an eligible contribution, provide the taxpayer that made
9 the contribution with a certificate of contribution. Each certificate of contribution
10 shall include the taxpayer's name, the amount contributed, the date of the
11 contribution, the name of the eligible charitable organization, and, if available, the
12 taxpayer's federal employer identification number.
13 §6316. Eligible contributions; restriction
14 A taxpayer who makes an eligible contribution may not designate a specific
15 child assisted by the eligible charitable organization as the beneficiary of the
16 contribution.
17 §6317. Administrative rulemaking; Department of Revenue and Department of
18 Children and Family Services
19 A. The secretary of the Department of Revenue and the secretary of the
20 Department of Children and Family Services, respectively, shall promulgate rules
21 in accordance with the Administrative Procedure Act as are necessary to implement
22 the provisions of this Chapter.
23 B. The secretary of the Department of Revenue and the secretary of the
24 Department of Children and Family Services shall collaborate in developing the rules
25 required by this Section. Each secretary and may incorporate recommendations of
26 the other in any final rules for implementation of the provisions of this Chapter.
27 §6318. Termination
28 The provisions of this Chapter shall terminate on December 31, 2028, and
29 shall have no effect on and after that date.
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HB NO. 386
1 Section 2. R.S. 47:293(9)(a)(xxiv) is hereby repealed in its entirety.
2 Section 3. This Act shall become effective on January 1, 2024.
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 386 Original 2023 Regular Session Beaullieu
Abstract: Establishes the Strong Louisiana Families Tax Credit for donations to certain
charitable organizations designated by the Dept. of Children and Family Services;
repeals a tax deduction for private infant adoptions and replaces it with a tax credit.
Present law establishes an income tax deduction in the amount of $5,000 for a taxpayer who
adopts an unrelated infant who is less than one year of age through either of the following:
(1)A private agency as defined in present law (Ch.C. Art. 1169).
(2)An attorney.
Proposed law repeals present law and establishes in lieu thereof a refundable tax credit of
$5,000 for taxpayers for such adoptions.
Proposed law authorizes a nonrefundable credit against individual or corporate income tax,
to be known as the Strong Louisiana Families Tax Credit, for eligible contributions that a
Louisiana taxpayer makes during a taxable year to an eligible charitable organization.
Defines "eligible charitable organization" as an organization designated by the Dept. of
Children and Family Services (DCFS) as eligible to receive contributions qualifying a
taxpayer for the tax credit provided for in proposed law.
Proposed law provides that the amount of the credit shall be equal to the amount of eligible
contributions to an eligible charitable organization or $50,000, whichever is less. Caps the
total amount of credits granted by the Dept. of Revenue pursuant to proposed law at
$10,000,000 per calendar year.
Proposed law allows the use of the credit in addition to any federal tax credit or deduction
earned for the same donation. However, proposed law prohibits taxpayers from receiving
any other state tax credit, exemption, exclusion, deduction, rebate, or other state tax benefit
for a donation for which the taxpayer has received a tax credit pursuant to proposed law.
Proposed law provides that if the tax credit amount earned in a taxable year exceeds the total
tax liability of a taxpayer in that year, the amount of the credit not used as an offset against
the taxpayer's tax liability in the taxable year may be carried forward as a credit against
subsequent income tax liabilities for a period not to exceed five taxable years.
Proposed law authorizes means for claiming of the credit by corporations, individuals,
estates, trusts, and partners and members of entities not taxed as corporations.
Proposed law requires DCFS to designate as an eligible charitable organization any
organization that meets all of the following requirements:
(1)The organization is exempt from federal income taxation under Section 501(c)(3) of
the Internal Revenue Code.
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(2)The organization is domiciled in this state and incorporated as a nonprofit
corporation under the provisions of present law (R.S. 12:201 et seq.).
(3)The organization provides any of the following services:
(a)Services to prevent child abuse, neglect, abandonment, or exploitation.
(b)Services to assist fathers in learning and improving parenting skills or to
encourage greater engagement of absentee fathers in their children's lives.
(c)Furnishing of books to the homes of children who are eligible for a federal
free or reduced-price meals program or who test below grade level in
kindergarten through grade five.
(d)Services to assist families with children who have a chronic illness or a
physical, intellectual, developmental, or emotional disability.
(e)Workforce development services for families of children eligible for a
federal free or reduced-price meals program.
(4)The organization provides to DCFS accurate information concerning its operations
which information must include, at a minimum, all of the following:
(a)A description of any services listed in paragraph (3) above that the
organization provides.
(b)The total number of individuals who received assistance from the
organization through services listed in paragraph (3) above during the last
calendar year.
(c)The total number of individuals who received assistance from the
organization during the last calendar year as a result of eligible contributions
made to the organization in accordance with proposed law.
(d)Basic financial information regarding the organization including information
on financing the costs of all services listed in paragraph (3) above that the
organization provides.
(e)Information concerning the outcomes of services listed in paragraph (3)
above that the organization provides.
(f)Contact information for executive-level staff of the organization.
(5)The organization annually submits to DCFS a statement, signed under penalty of
perjury by a current officer of the organization, affirming that the organization meets
all criteria to qualify as an eligible charitable organization, has fulfilled its
responsibilities as required by proposed law for the previous fiscal year if it received
eligible contributions during that year, and intends to fulfill its responsibilities during
the upcoming year.
(6)The organization provides all documentation requested by DCFS to verify its status
as an eligible charitable organization or compliance with the applicable requirements
of proposed law.
Proposed law prohibits DCFS from designating as an eligible charitable organization any
organization that provides abortions, pays for or provides coverage for abortions, or, in the
prior fiscal year, received more than 50% of its total annual revenue from one or more
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governmental agencies, either directly or through one or more governmental agency
contractors.
Proposed law requires DCFS to do all of the following with respect to organizations that it
designates as eligible charitable organizations:
(1)Annually redesignate eligible charitable organizations that have complied with all
requirements of proposed law.
(2)Remove the designation of organizations that fail to meet all requirements of
proposed law and provide a process for redesignation of those organization which
reapply with the department and come into compliance with requirements of
proposed law.
(3)Publish information regarding the Strong Louisiana Families Tax Credit program and
a listing of eligible charitable organizations on its website.
Proposed law requires DCFS to compel the return of monies donated to an eligible charitable
organization if that organization fails to comply with the requirements of proposed law.
Provides that organizations required to return donated monies shall be ineligible to receive
contributions pursuant to proposed law for a period of ten years.
Proposed law requires eligible charitable organizations to comply with all of the following
requirements:
(1)Obtain state and national criminal history record information and perform a check
of the Dru Sjodin National Sex Offender Public Website on each staff member and
volunteer who works directly with children in any program funded wholly or partly
with monies received through eligible contributions.
(2)Expend the entirety of eligible contributions it receives on providing to La. residents
one or more of the types of services listed in proposed law.
(3)Annually submit all of the following to DCFS:
(a)An audit of the eligible charitable organization conducted by an independent
certified public accountant, the report from which shall be submitted within
180 days after completion of the organization's fiscal year.
(b)A copy of the organization's most recent Return of Organization Exempt
from Income Tax form (Form 990) filed with the Internal Revenue Service.
(4)Notify DCFS within five business days after it ceases to meet any eligibility
requirement provided in proposed law or fails to fulfill its responsibilities as
prescribed in proposed law.
(5)Upon receipt of an eligible contribution, provide the taxpayer that made the
contribution with a certificate of contribution that conforms with specifications
provided in proposed law.
Proposed law stipulates that a taxpayer who makes an eligible contribution may not
designate a specific child assisted by the eligible charitable organization as the beneficiary
of the contribution.
Proposed law requires the secretary of the Dept. of Revenue and the secretary of DCFS,
respectively, to promulgate administrative rules as are necessary to implement proposed law.
Requires the secretaries to collaborate in developing the rules and authorizes each secretary
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to incorporate recommendations of the other in any final rules for implementation of
proposed law.
Proposed law becomes effective Jan. 1, 2024, and terminates on Dec. 31, 2028.
(Amends R.S. 47:297.21(A) and (C); Adds R.S. 47:297.21(D) and 6311-6318; Repeals R.S.
47:293(9)(a)(xxiv))
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