SLS 25RS-331 ORIGINAL
2025 Regular Session
SENATE BILL NO. 186
BY SENATOR REESE
TAX/TAXATION. Provides relative to the New Markets tax credit. (8/1/25)
1 AN ACT
2 To amend and reenact R.S. 47:6016.1(B)(1)(b) and (10)(b), relative to the New Markets
3 Jobs Act premium tax credit; to provide for the definition of applicable percentage;
4 to provide for the definition of qualified equity investment; to provide with respect
5 to the issuance date; to provide relative to credit allocation dates; and to provide for
6 related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6016.1(B)(1)(b) and (10)(b) are hereby amended and reenacted
9 to read as follows:
10 ยง6016.1. Louisiana New Markets Jobs Act; premium tax credit
11 * * *
12 B. As used in this Section, the following words, terms, and phrases have the
13 meaning ascribed to them unless a different meaning is clearly indicated by the
14 context:
15 (1)(a) * * *
16 (b) "Applicable percentage" means fifteen percent for the fourth third
17 through sixth fifth credit allowance dates and ten percent for the seventh sixth credit
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 25RS-331 ORIGINAL
1 allowance for all qualified equity investments issued on or after August 1, 2020.
2 * * *
3 (10) "Qualified equity investment" means any equity investment in a
4 qualified community development entity that meets each of the following criteria:
5 * * *
6 (b) Has at least one hundred percent of its cash purchase price used by the
7 issuer to make qualified low-income community investments in qualified active
8 low-income community businesses located in this state by the first anniversary of the
9 initial credit allowance date with respect to qualified equity investments issued prior
10 to August 1, 2020, and after August 1, 20232025, and within nine months of the
11 initial credit allowance date with respect to qualified equity investments issued on
12 or after August 1, 2020, and before August 1, 2023.
13 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Senate Legislative Services.
The keyword, summary, 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)]
DIGEST
SB 186 Original 2025 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 Louisiana.
Proposed law retains present law.
Present law defines applicable percentage as 15% for the fourth through sixth credit
allowance dates and 10% percent for the seventh credit allowance for all qualified equity
investments issued on or after August 1, 2020.
Proposed law changes the definition of applicable percentage to mean 15% for the third
through fifth credit allowance dates and 10% percent for the sixth credit allowance for all
qualified equity investments issued on or after August 1, 2020.
Present law defines qualified equity investment as any equity investment in a qualified
community development entity that has at least 100% of its cash purchase price used by the
issuer to make qualified low-income community investments in qualified active low-income
community businesses located in this state by the first anniversary of the initial credit
allowance date for qualified equity investments issued prior to August 1, 2020, and after
August 1, 2023, and within nine months of the initial credit allowance date for qualified
equity investments issued on or after August 1, 2020, and before August 1, 2023.
Proposed law changes the definition of qualified equity investment to mean any equity
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 25RS-331 ORIGINAL
investment in a qualified community development entity that has at least 100% of its cash
purchase price used by the issuer to make qualified low-income community investments in
qualified active low-income community businesses located in this state by the first
anniversary of the initial credit allowance date for qualified equity investments issued prior
to August 1, 2020, and after August 1, 2025, and within nine months of the initial credit
allowance date for qualified equity investments issued on or after August 1, 2020, and before
August 1, 2023.
Effective August 1, 2025.
(Amends R.S. 47:6016.1(B)(1)(b) and (10)(b))
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.