RÉSUMÉ DIGEST
ACT 433 (SB 151) 2023 Regular Session Reese
Existing 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.
Existing 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.
New law retains the existing 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.
Existing 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.
New law retains existing law and further defines "rural parish" as a parish with a population
less than 100,000 as of the most recent federal decennial census.
Existing law defines the types of investments required for tax credit eligibility.
New law retains existing 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.
Existing law authorizes a total of $55 million and $75 million of investment authority for
certification and allocation for the purpose of earning tax credits.
New law authorizes a total of $150 million of investment authority for certification and
allocation for the purpose of earning tax credits beginning August 1, 2023.
Existing 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".
New law retains existing 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.
New 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 June 27, 2023.
(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))