2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:6026. Cane River heritage tax credit

RS 47:6026 - Cane River heritage tax credit
A. The unique, nationally significant cultural, historic, natural, and scenic resources of the Cane River Heritage Area should be utilized in a sustainable manner to their maximum potential in order to improve the quality of life of the inhabitants of the region. Many of the tax incentive and capital access programs administered by the Department of Economic Development do not target heritage-based businesses located in the trace area. The primary purpose of this Section is to assist individuals and businesses engaged in heritage-based commercial activities in obtaining capital and tax incentives.
B. For the purposes of this Section, the following terms shall have the meanings ascribed to them unless the context clearly indicates otherwise:
(1) "Cultural heritage" means those qualities that capture the traditions, customs, beliefs, history, folklore, lifeways, and material culture of the Cane River Heritage Area.
(2) "Department" means the Department of Culture, Recreation and Tourism.
(3) "Development zone" means the Cane River Heritage Area Development Zone.
(4) "Heritage-based cottage industry" means a small business with no more than twenty full- or part-time employees or an individual who is sustainably harnessing the Cane River Heritage Area's cultural heritage and natural heritage resources for purposes which include interpreting, accessing, developing, promoting, or reinforcing the unique character and characteristics of the heritage area. "Heritage-based cottage industries" shall include lodging, including bed and breakfasts, camping, houseboats, and recreational vehicle facilities; museums, including living museums and interpretive facilities; artists and craftsmakers of authentic or locally made products; authentic food packaging, production, and harvesting; music production and instrument making; historic homes, house museums, and historic sites; boat, canoe, kayak, and bicycle rentals; wild and scenic sites; hunting, fishing, and birding guide services; tour planning and cultural guide services; swamp tours, airboat tours, helicopter tours, plane tours, and balloon tours; retail facilities of authentic products; and agricultural tours. "Heritage-based cottage industry" shall not include hotels, motels, restaurants, gaming facilities, churches, and housing. In order to qualify as a heritage-based cottage industry, for purposes of this Section, the owner of the business must be a resident of the heritage area development zone.
(5) "Natural heritage" means one of those qualities that capture the environmental features of the Cane River Heritage Area, including man-made and natural resources and wildlife.
(6) "Small business" means a business with no more than twenty full- or part-time employees.
C.(1) There shall be allowed a credit against any Louisiana income or corporation franchise taxes for a heritage-based cottage industry located or to be located in the development zone. The Department of Culture, Recreation and Tourism may enter into contracts for periods not exceeding five years with a heritage-based cottage industry in order to facilitate the tax credits authorized by this Section. No contract shall be granted for any exemptions or credits which are not directly related to the concern located within the development zone, and no tax exemption or credit shall be granted for any tax or portion of a tax applicable to operations or activities of a concern located outside of the development zone.
(2) Applications for contracts of exemption or credit shall be submitted to the department. The department shall evaluate applications to determine whether the requirements for a contract have been satisfied. The Department of Revenue shall aid the department in determining whether the tax information furnished by the applicant is true and correct. The Louisiana Workforce Commission shall aid the department in verifying employment data.
D.(1) Whenever the secretary of the department finds that a concern satisfies the requirements of this Section, he shall certify the application.
(2) The tax credit authorized by the provisions of this Section shall be for an amount of up to one thousand eighty dollars, which may be used against the tax liability for state income and corporation franchise taxes related to the operations of the cottage industry within the development zone.
(3) In addition, the department may also enter into contracts with eligible cottage industries for a one thousand eighty dollar tax credit per new employee hired during the taxable year for which the credit is claimed. In order to qualify for this credit, the applicant must have net new hires of one full-time employee or two part-time employees. A full-time employee is a person employed for at least thirty-two hours per week. A part-time employee is a person employed for at least twenty hours per week but less than thirty-two hours a week. In order to qualify as a new hire for purposes of this credit, the employee must have been a resident of the heritage area development zone for at least thirty days prior to employment. The credit may be applied to any state income tax liability or any state corporate franchise tax liability, but shall not be applied to any liabilities for penalty or interest due or outstanding at the time the credit is generated. This credit shall be applicable only to a position that did not previously exist in the business and that is filled by a resident of the development zone who is performing duties in connection with the operation of the business as a regular, full-time employee.
(4) Taxpayers who are awarded credits pursuant to the provisions of this Section in excess of their income and corporation franchise tax liability may carry forward their unused credits for no more than ten years from the date the credit was originally awarded.
(5)(a) All entities taxed as corporations for Louisiana income or corporation franchise tax purposes shall claim any credit allowed under this Section on their corporation income and corporation franchise tax return.
(b) Individuals shall claim any credit allowed under this Section on their individual income tax return.
(c) Estates or trusts shall claim any credit allowed under this Section on their fiduciary income tax returns.
(d) Entities not taxed as corporations shall claim any credit allowed under this Section on the returns of the partners or members as follows:
(i) Corporate partners or members shall claim their share of the credit on their corporation income or corporation franchise tax returns.
(ii) Individual partners or members shall claim their share of the credit on their individual income tax returns.
(iii) Partners or members that are estates or trusts shall claim their share of the credit on their fiduciary income tax returns.
E.(1) On and after January 1, 2018, no new applications to receive tax exemptions or credits pursuant to this Section shall be approved by the department. However, a business which, prior to January 1, 2018, has been approved by the department to receive tax exemptions or credits under this Section shall continue to receive such tax benefits pursuant to the terms of its agreement with the state of Louisiana as long as the business retains its eligibility.
(2) The department shall periodically monitor the implementation and operation of the provisions of this Section. Prior to the cessation of activities as provided for in Paragraph (1) of this Subsection, the department shall provide written evaluation of the program and its economic impact on the development zone to the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs. The written evaluation shall be utilized by the legislature to determine whether to continue the effectiveness of this Section and whether to create similar development zones in other heritage areas in the state.
F. The department shall promulgate rules and regulations as are necessary, in accordance with the Administrative Procedure Act, to implement the provisions of this Section.
G. Commencing no later than January 31, 2016, the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs shall review the credit authorized pursuant to the provisions of this Section to determine if the economic benefit provided by such credit outweighs the loss of revenue realized by the state as a result of awarding such credit. The House and Senate committees shall make a specific recommendation no later than March 1, 2017, to either continue the credit or to terminate the credit.
Acts 2007, No. 299, §2; Acts 2008, No. 743, §7, eff. July 1, 2008; Acts 2011, No. 56, §1; Acts 2013, No. 304, §1; Acts 2015, No. 125, §2, eff. July 1, 2015; Acts 2015, No. 357, §1, eff. June 29, 2015; Acts 2016, 1st Ex. Sess., No. 29, §2; Acts 2017, No. 400, §1 and 4, eff. June 26, 2017.
NOTE: See Acts 2015, No. 125, §7, regarding applicability.
NOTE: See Acts 2016, 1st Ex. Sess., No. 29, §2, regarding effectiveness.