The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Xavier I. Alexander.
DIGEST
SB 151 Engrossed 2023 Regular Session Reese
Present law provides for the Louisiana New Markets Jobs Act tax credit that may be claimed against
insurance premium tax. Provides that eligibility for the credit is based on the investment of private
capital in a low-income community business located in La.
Present law defines "recovery zone" as any parish for which FEMA has made a determination that
the parish is eligible for both individual and public assistance under the declaration of major disasters
in the state.
Proposed law retains the present law and adds to the definition of "recovery zone" follow-on
investments in a qualified active low-income community business that was qualified by its location
in a recovery zone shall be considered qualified low-income community investments even if made
after the end of such declaration.
Present law defines "rural parish" as a parish with a population of less than 100,000 as of the July
1, 2019 census estimate by the United States Census Bureau.
Proposed law retains present law and further defines "rural parish" as a parish with a population less
than 100,000 as of the most recent federal decennial census.
Present law defines the types of investments required for tax credit eligibility.
Proposed law retains present law and further provides that the issuer make qualified low-income
community investments of at least 100% of the cash purchase price in the qualified active low-
income community business by the first anniversary of the initial credit allowance date with respect
to investments issued prior to August 1, 2020, and after August 1, 2023, and within nine months of
the initial allowance date with respect to investments issued on or before August 1, 2023.
Present law authorizes a total of $55 million and $75 million of investment authority for certification
and allocation for the purpose of earning tax credits.
Proposed law authorizes a total of $150 million of investment authority for certification and
allocation for the purpose of earning tax credits.
Present law provides for conditions under which the Dept. of Insurance shall recapture tax credits
that include a recapture of federal tax credits by the federal government, or a failure to invest an
amount equal to 100% of the purchase price of the investment within nine months of the issuance
of the investment or less than 50% of the purchase price was invested in "impact businesses". Proposed law retains present law recapture provision and adds a recapture condition for investments
made on or after August 1, 2023, if there has been a failure to invest an amount equal to 100% of the
purchase price of the investment within 12 months of the issuance of the investment or less than 50%
of the purchase price was invested in impact businesses.
Proposed law requires reporting by a qualified community development entity that issues qualified
equity investments on or after August 1, 2020, but before August 1, 2023, to the Dept. of Revenue
within five days of the first anniversary of the initial credit allowance date. Provides that the report
shall include evidence that the business was a qualified active low-income community business or
impact business at the time of the qualified low-income community investment.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6016.1(B)(6), (7), and (10)(b), (E)(5)(c), (F)(3) and (4), (H)(1)(b), and (J)(1); adds
R.S. 47:6016.1(E)(5)(d) and (F)(5))