2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:6034. Musical and theatrical production income tax credit

RS 47:6034 - Musical and theatrical production income tax credit
A. Purpose. It is the intention of the legislature in creating these different types of tax credits: a credit for qualified production expenditures made from investments in a state-certified musical or theatrical production; a credit for the construction, repair, or renovation of facilities related to such productions and performances; a credit for the payroll of Louisiana residents employed in connection with a state-certified musical or theatrical production; and a credit for employing college, university, and vocational-technical students employed in connection with a state-certified musical or theatrical production, to establish and promote Louisiana as one of the primary places in the United States in which live performances, from creation to presentation, are present and thriving. The live performance industry will enhance economic development because it fits well with the state's reputation as a tourist destination, will offer numerous and varied employment opportunities, and in conjunction with the available federal and state incentives, will be an attraction for new and relocating businesses and will provide for the reinventing of countless abandoned properties as either performance or rehearsal spaces. The live performance industry will also spur educational development: Louisiana colleges, universities, and vocational-technical schools will be able to offer talented undergraduate and graduate students from this state, other states, and around the world a real-world opportunity to participate in degree programs across the state that work on the various productions in accounting, law, management, and marketing and to fill arts-related positions such as actors, writers, producers, stagehands, and directors, as well as technicians working on all aspects of the production such as lighting, sound, and actual stage production and operations.
B. Definitions. For the purposes of this Section:
(1) "Base investment" means the actual investment made and expended in this state by a state-certified musical or theatrical production as production-related costs or as capital costs of a state-certified musical or theatrical facility infrastructure project.
(2) "Company" or "financier" means any individual, firm, partnership, limited liability company, joint venture, association, corporation, estate, trust, or other entity, group, or combination acting as a unit, and the plural as well as the singular number.
(3) "Expended in the state" or "expenditures in the state" means an expenditure to acquire or lease immovable property located in the state, an expenditure to acquire movable property from a source within the state which is subject to state sales and use tax, or an expenditure as compensation for services performed within the state which is subject to state income tax.
(4) "Infrastructure expenditures" means expenditures directly related to a state-certified infrastructure project or state-certified higher education infrastructure project including land and land acquisition costs, construction costs, design fees, furniture, fixtures, and equipment purchased subject to a sale agreement or capital lease. Infrastructure expenditures shall not include indirect costs such as general administrative costs, insurance, any costs related to the transfer or allocation of tax credits, or the expenditure verification report fee. The Department of Economic Development may determine whether expenditures submitted as production-related costs of capital costs related to an infrastructure facility represent legitimate expenditures for the actual costs of related goods or services that have economic substance and a business purpose related to the certified production or facility, or such costs constitute constructive dividends, self-dealing, inflated prices or similar transactions entered into for the purpose of inflating the amount of tax credits earned rather than for the benefit of the production or facility.
(5) "Musical or theatrical production" means the producing, rehearsing, marketing, administration, recording, performing, and/or filming of a live musical or theatrical performance in the state before live audiences, the costs of which are not certified for other tax credits provided for in Louisiana law, whether or not there is a charge for admission. Such performances shall include, but not be limited to drama, comedy, comedy revue, opera, ballet, jazz, cabaret, and variety entertainment.
(6) "Payroll" means all salary, wages, and other compensation, including related benefits for services performed in Louisiana.
(7)(a) "Production expenditures" means a contemporaneous exchange of cash or cash equivalent for goods or services related to development, production, or operating expenditures in this state for a state-certified musical or theatrical production, including but not limited to expenditures for set construction and operation, including special and visual effects, costumes, wardrobes, make-up, accessories, costs associated with sound, lighting, staging, payroll, and other related costs.
(b) "Production expenditures" shall not include any indirect costs, any expenditures later reimbursed by a third party, and costs related to the transfer of the tax credits, any amounts that are paid to persons or entities as a result of their participation in profits from the exploitation of the production, or the expenditure verification report fee.
(8) "Related party transaction" means a transaction between parties deemed to be related by common ownership or control under generally accepted auditing principles. Related party transaction expenditures may be subject to limitations as provided for by rules and regulations promulgated by the department.
(9)(a) "Resident" or "resident of Louisiana" means a natural person and, for the purpose of determining eligibility for the tax incentives provided by this Section, a person who qualifies for any of the following reasons:
(i) The person is domiciled in the state of Louisiana.
(ii) The person maintains a permanent place of abode within the state and spends in the aggregate more than six months of each year within the state.
(iii) The person pays taxes to the state on the amount of money paid to such person for which a credit is sought pursuant to this Section.
(b) A company owned or controlled by such a person and which lends the services of such a person for a state-certified musical or theatrical production shall also be deemed a resident if such company is organized or authorized to do business in the state and such company pays taxes to the state on the amount of money paid to such company for such services of such person.
(10) "State-certified higher education musical or theatrical infrastructure project" means a new proscenium or black-box theatre infrastructure project situated on a parcel of land located on the campus of a higher education institution in this state, that is owned by a higher education campus institution or support foundation related to the campus primarily operated to benefit and support campus students and the higher education facility. The primary purpose of the proposed infrastructure facility must be to host live performances, and the facility must have a minimum fixed seating capacity of five hundred. Expenditures attributable to areas other than where live performances will take place may comprise no more than twenty-five percent of total qualifying expenditures.
(11)(a) "State-certified musical or theatrical facility infrastructure project" or "state-certified infrastructure project", for any project which receives initial certification before July 1, 2013, means a capital infrastructure project in the state directly related to the production or performance of musical or theatrical productions as defined in this Section, and movable and immovable property and equipment related thereto, or any other facility that supports and is a necessary component of such facility, and any expenditures in the state related to the construction, repair, or renovation of such project, that are certified, verified, and approved as provided for in this Section.
(b) "State-certified musical or theatrical infrastructure project" or "state-certified infrastructure project", for any project which receives initial certification on or after July 1, 2013, means a new or rehabilitated proscenium or black-box theatre infrastructure project located in the state and any expenditures in the state directly related to the construction, repair, or renovation of such project, which are certified, verified, and approved as provided for in this Section. The primary purpose of the proposed facility must be to host live performances and the facility must have a minimum capacity of five hundred. Expenditures attributable to areas other than where live performances will take place may comprise no more than twenty-five percent of total qualifying expenditures.
(12)(a) "State-certified musical or theatrical production" means a musical or theatrical production performed in this state including but not limited to concerts, musical tours, ballet, dance, comedy revue, or live variety entertainment, or a series of productions occurring over the course of a twelve-month period, and the recording or filming of such production, that originate, are developed, or have their initial public performance before an audience within Louisiana, or that have their United States debut within Louisiana, and the production expenditures, expenditures for the payroll of residents, and expenditures for employing college and vocational-technical students related to such production or productions, that are certified, verified, and approved as provided for in this Section. Non-qualifying projects include but are not limited to non-touring music and cultural festivals, industry seminars, trade shows, and any production activity taking place outside of the state.
(b) A "state-certified musical or theatrical production" that shall be eligible for recertification and the credit provided for in this Section shall include a previously certified musical or theatrical production that received a credit pursuant to this Section and is otherwise eligible pursuant to this Section, that returns for performances within the state after being performed on Broadway.
C. Income tax credits for state-certified productions and state-certified musical or theatrical facility infrastructure projects:
(1) There is hereby authorized the following types of credits against the state income tax:
(a)(i)(aa) A base investment credit may be granted for certified, verified, and approved production expenditures for a state-certified musical or theatrical production, or for investments made by a company or a financier in such production which are, in turn, expended for such production expenditures.
(bb) The initial certification shall be effective for a period of twelve months prior to and twelve months after the date of initial certification.
(ii)(aa) For state-certified infrastructure projects that receive initial certification on or before January 1, 2014, a base investment credit may be earned for expenditures made in the state on or before January 1, 2015, for the construction, repair, or renovation of a state-certified musical or theatrical facility infrastructure project or for investments made by a company or a financier in such infrastructure project which are, in turn, expended for such construction, repair, or renovation, not to exceed ten million dollars per state-certified infrastructure project, under conditions provided for in this Item.
(bb)(I) For state-certified higher education musical or theatrical infrastructure projects that receive initial certification before July 1, 2015, a base investment credit may be earned for expenditures made in the state on or before January 1, 2022, for the construction, repair, or renovation of a new state-certified higher education musical or theatrical facility infrastructure project, or for investments made by a company or a financier in such infrastructure project that are, in turn, expended for such construction, repair, or renovation. Twenty-five percent of the total base investment provided for in the initial certification letter of a state-certified higher education musical or theatrical infrastructure project must be expended on or before January 1, 2020, in order for the project to earn credits for the remaining estimated base investment provided for in the initial certification letter, as expenditures are made in the state on or before January 1, 2022. No credits shall be certified until the state-certified higher education musical or theatrical infrastructure project is complete. The initial certification letter shall be effective for qualified expenditures made no more than six months prior to the date of application. State-certified higher education musical or theatrical infrastructure projects shall not be subject to the provisions of Subitem (cc) of this Item nor shall such projects be subject to the provisions of Subsection H of this Section.
(II) For state-certified higher education musical or theatrical infrastructure projects that receive initial certification on or after July 1, 2015, and on or before January 1, 2018, a base investment credit may be earned for expenditures made in the state on or before January 1, 2022, for the construction, repair, or renovation of a new state-certified higher education musical or theatrical facility infrastructure project, or for investments made by a company or a financier in such infrastructure project that are, in turn, expended for such construction, repair, or renovation. Twenty-five percent of the total base investment provided for in the initial certification letter of a state-certified higher education musical or theatrical infrastructure project must be expended on or before January 1, 2020, in order for the project to earn credits for the remaining estimated base investment provided for in the initial certification letter, as expenditures are made in the state on or before January 1, 2022. No credits shall be certified until the state-certified higher education musical or theatrical infrastructure project is complete. The initial certification letter shall be effective for qualified expenditures made no more than six months prior to the date of application. State-certified higher education musical or theatrical infrastructure projects shall not be subject to the provisions of Subitem (cc) of this Item nor shall such projects be subject to the provisions of Subsection H of this Section.
(cc) Tax credits for infrastructure projects shall be earned only as follows:
(I) Construction of the infrastructure project shall begin within six months of the initial certification provided for in Subparagraph (E)(1)(d) of this Section.
(II) Expenditures shall be certified, verified, and approved as provided for in this Section, and credits are not earned until such certification.
(III) Twenty-five percent of the total base investment provided for in the initial certification of an infrastructure project pursuant to Subparagraph (E)(1)(d) of this Section shall be certified, verified, and approved as expended before any credits may be earned.
(IV) No tax credit shall be allowed for expenditures made for any infrastructure project two years after its initial certification pursuant to Subparagraph (E)(1)(d) of this Section, unless fifty percent of total base investment provided for in the initial certification of the project pursuant to such Subparagraph has been expended prior to that time. The expenditures may be finally certified at a later date.
(dd) The initial certification may require the tax credits to be taken and/or transferred in the tax period in which the credit is earned or the tax credits may be structured in the initial certification of the project to provide that only a portion of the tax credit be taken over the course of two or more tax years.
(iii)(aa) For state-certified projects that receive initial certification prior to July 1, 2015, and except as limited for state-certified infrastructure projects as provided for in this Subparagraph, the base investment credit shall be for the following amounts:
(I) If the total base investment is greater than one hundred thousand dollars and less than or equal to three hundred thousand dollars, a company shall be allowed a tax credit of ten percent of the base investment made by that company.
(II) If the total base investment is greater than three hundred thousand dollars and less than or equal to one million dollars, a company shall be allowed a tax credit of twenty percent of the base investment made by that company.
(III) If the total base investment is greater than one million dollars, a company shall be allowed a tax credit of twenty-five percent of the base investment made by that company.
(bb) For state-certified projects that receive initial certification on or after July 1, 2015, and before July 1, 2017, and except as limited for state-certified infrastructure projects as provided for in this Subparagraph, the base investment credit shall be for the following amounts:
(I) If the total base investment is greater than one hundred thousand dollars and less than or equal to three hundred thousand dollars, a company shall be allowed a tax credit of seven and two-tenths of one percent of the base investment made by that company.
(II) If the total base investment is greater than three hundred thousand dollars and less than or equal to one million dollars, a company shall be allowed a tax credit of fourteen and four-tenths of one percent of the base investment made by that company.
(III) If the total base investment is greater than one million dollars, a company shall be allowed a tax credit of eighteen percent of the base investment made by that company.
(cc) For state-certified projects that receive initial certification on or after July 1, 2017, and except as limited for state-certified infrastructure projects as provided for in this Subparagraph, the base investment credit shall be for the following amounts:
(I) If the total base investment is greater than one hundred thousand dollars and less than or equal to three hundred thousand dollars, a company shall be allowed a tax credit of seven percent of the base investment made by that company.
(II) If the total base investment is greater than three hundred thousand dollars and less than or equal to one million dollars, a company shall be allowed a tax credit of fourteen percent of the base investment made by that company.
(III) If the total base investment is greater than one million dollars, a company shall be allowed a tax credit of eighteen percent of the base investment made by that company.
(b) Repealed by Acts 2013, No. 197, §2, eff. July 1, 2013.
(c)(i) For state-certified musical or theatrical productions that receive an initial certification before July 1, 2015, an additional tax credit of one tenth of one percent of the amount expended to employ students enrolled in Louisiana colleges, universities, and vocational-technical schools in a state-certified musical or theatrical production in arts-related positions, such as an actor, writer, producer, stagehand, or director, or as a technician working on aspects of the production such as lighting, sound, and actual stage work, or working indirectly on the production in accounting, law, management, and marketing.
(ii) For state-certified musical or theatrical productions that receive an initial certification on or after July 1, 2015, an additional tax credit of seventy-two thousandths of one percent of the amount expended to employ students enrolled in Louisiana colleges, universities, and vocational-technical schools in a state-certified musical or theatrical production in arts-related positions, such as an actor, writer, producer, stagehand, or director, or as a technician working on aspects of the production such as lighting, sound, and actual stage work, or working indirectly on the production in accounting, law, management, and marketing.
(d)(i) To the extent that base investment is expended on payroll for Louisiana residents employed in connection with a state-certified musical or theatrical production that receives initial certification prior to July 1, 2015, except for the students provided for in Subparagraph (c) of this Paragraph, or the construction of a state-certified musical or theatrical facility infrastructure project, a company shall be allowed an additional tax credit of ten percent of such payroll; however, if the amount paid to any one person exceeds one million dollars, the additional credit shall not include any amount paid to that person that exceeds one million dollars.
(ii) To the extent that base investment is expended on payroll for Louisiana residents employed in connection with a state-certified musical or theatrical production that receives initial certification on or after July 1, 2015, and before July 1, 2017, except for the students provided for in Subparagraph (c) of this Paragraph, or the construction of a state-certified musical or theatrical facility infrastructure project, a company shall be allowed an additional tax credit of seven and two-tenths of one percent of such payroll; however, if the amount paid to any one person exceeds one million dollars, the additional credit shall not include any amount paid to that person that exceeds one million dollars.
(iii) To the extent that base investment is expended on payroll for Louisiana residents employed in connection with a state-certified musical or theatrical production that receives initial certification on or after July 1, 2017, except for the students provided for in Subparagraph (c) of this Paragraph, or the construction of a state-certified higher education musical or theatrical facility infrastructure project, a company shall be allowed an additional tax credit of seven percent of such payroll; however, if the amount paid to any one person exceeds one million dollars, the additional credit shall not include any amount paid to that person that exceeds one million dollars.
(e), (f) Repealed by Acts 2013, No. 197, §2, eff. July 1, 2013.
(2)(a) The tax credits shall be earned each calendar year to the extent the Louisiana Department of Economic Development verifies in writing that expenditures qualifying for a credit pursuant to this Section have been expended for the calendar year in accordance with the estimates of such expenditures for the calendar year set forth in the certification of the production or project.
(b) No credit shall be allowed under this Section for any expenditure for which a financier receives a credit pursuant to this Section, or for which a credit is granted under R.S. 47:6007 or 6023. In addition, a state-certified production or state-certified infrastructure project which receives tax credits pursuant to the provisions of this Chapter shall not be eligible to receive the rebates provided for in R.S. 51:2451 through 2461 in connection with the activity for which the tax credits were received.
(3) Tax credits associated with a state-certified musical or theatrical production or a state-certified musical or theatrical facility infrastructure project shall never exceed the total base investment in that production or infrastructure project.
(4)(a) Beginning July 1, 2017, the total amount of tax credits granted by the department in any fiscal year shall not exceed ten million dollars.
(b) For applications received on or after July 1, 2017, no more than one million dollars in tax credits shall be granted per project.
(c) The granting of credits under this Section shall be on a first-come, first-served basis, with fifty percent of total tax credits available to be granted annually reserved for state-certified musical or theatrical productions by approved nonprofit organizations, as further provided by rules promulgated by the department. If the total amount of credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for that year, the excess shall be treated as having been applied for on the first day of the subsequent year. If the total amount of credits granted in any fiscal year is less than the amount available to be granted, any residual credit remaining shall be available to be granted in subsequent fiscal years.
D.(1) The credit shall be allowed against individual or corporate income tax of the companies or financiers of the production or infrastructure project in accordance with their share of the credit as provided for in the application for certification for the production or infrastructure project. A company or financier may, on a one-time basis, transfer the credit or any refund of an overpayment to an individual or other entity including without limitation a bank or other lender, provided that the transfer shall not be effective until receipt by the Department of Revenue of written notice of such transfer. Transferors and transferees shall submit to the Department of Revenue, in writing, a notification of any transfer of the tax credit within ten business days after the transfer. The credit shall be allowed for the taxable period in which expenditures eligible for a credit are expended. Any excess of the credit over the income tax liability against which the credit may be applied shall constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary of the Department of Revenue shall make a refund of such overpayment from the current collections of the taxes imposed by Chapter 1 of Subtitle II of this Title, as amended. The right to a refund of any such overpayment shall not be subject to the requirements of R.S. 47:1621(B).
(2) Application of the credit.
(a) Individuals, estates, and trusts shall claim their share of any credit on their income tax return.
(b) Entities not taxed as corporations shall claim their share of any credit on the returns of the partners or members.
(c) Corporate partners or members shall claim their share of any credit on their corporation income tax returns.
(d) Individual partners or members shall claim their share of any credit on their individual income tax returns.
(e) Partners or members that are estates or trusts shall claim their share of any credit on their fiduciary income tax returns.
E. Certification and administration:
(1)(a)(i) The secretary of the Department of Economic Development shall determine which musical or theatrical productions and which musical or theatrical facility infrastructure projects shall be certified pursuant to this Section through the adoption and promulgation of rules by the Department of Economic Development. The rules shall also provide for all of the following:
(aa) The minimum criteria for such certification.
(bb) The manner in which the department shall decide which expenditures for such productions or infrastructure projects will qualify for the credits provided for in this Section.
(cc) An appeals process in the event that an application for or the certification of a production or infrastructure project, or an expenditure related to such production or project, is denied.
(ii) In addition, these rules shall be approved by the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs in accordance with the provisions of the Administrative Procedure Act. No tax credits shall be granted under this Section until adoption of such rules.
(b) State certification shall not be granted to a production or infrastructure project by any person or company, or financed by any person or company, or any company or financier owned, affiliated, or controlled, in whole or in part, by any company or person, which is in default on a loan made by the state or a loan guaranteed by the state, or which has ever declared bankruptcy under which an obligation of the company or person to pay or repay public funds or monies was discharged as a part of such bankruptcy.
(c) When determining which musical or theatrical productions or musical or theatrical facility infrastructure projects qualify for certification, the Department of Economic Development shall take the following factors into consideration:
(i) The contribution of the production or infrastructure project to establishing the state as a leader in the live performance industry.
(ii) The impact of the production or infrastructure project on the employment of Louisiana residents.
(iii) The extent to which students in Louisiana colleges, universities, and vocational-technical schools will have an opportunity to work in a production in an arts-related position, such as an actor, writer, producer, stagehand, or director, or as a technician working on aspects of the production such as lighting, sound, and actual stage work, or working indirectly on the production in accounting, law, management, and marketing.
(iv) The impact of the production or infrastructure project on the overall economy of the state including the manner in which available federal and state incentives will be utilized in the financing or operation of the infrastructure project.
(v) The availability and kind of musical or theatrical facilities within the area in which a musical or theatrical facility infrastructure project is proposed.
(d) Upon approval the Department of Economic Development shall initially certify a production or project as a state-certified production or state-certified infrastructure project and send notice of such certification to the applicant and to the secretary of the Department of Revenue. The initial certification shall include all of the following:
(i) The total base investment to be expended on the state-certified production or the state-certified infrastructure project.
(ii) The companies and financiers to whom the credits shall be allocated.
(iii) The estimated amounts of the credits to be allocated to each.
(iv) In the case of state-certified infrastructure projects, when such tax credits may be taken or transferred.
(v) A unique identifying number for the state-certified production or state-certified infrastructure project.
(e) Upon project completion, the applicant shall make a request to the Department of Economic Development to proceed to final certification by submitting to the department a cost report of production or project expenditures to be formatted in accordance with instructions of the department. The applicant shall make all records related to the cost report available for inspection by the department and the certified public accountant selected by the department to prepare the expenditure verification report. After review and investigation of the cost report, the certified public accountant shall submit to the department an expenditure verification report. Musical and theatrical production income tax credits shall be certified only upon the receipt and approval by the department of an expenditure verification report submitted by a certified public accountant in accordance with the provisions of this Subparagraph. The department shall review the expenditure verification report, and for those expenditures found to be qualified the department shall issue a final tax credit certification letter, certifying the applicant and indicating the type and amount of tax credits for which the applicant or other companies or financiers are eligible pursuant to this Section.
(2)(a) Application. An applicant for the tax credit shall submit an application for initial certification to the Department of Economic Development that includes the following information:
(i) The application for state-certified productions shall include:
(aa) An application fee in an amount set in accordance with R.S. 36:104.
(bb) A preliminary budget including estimated Louisiana payroll, estimated transportation expenditures, and estimated base investment, including the manner in which available federal and state incentives will be utilized in the financing or operation of the production.
(cc) A general description of the production and performance which may, at the request of the department, include the book, libretto, score, or concept, and plans for recording and/or filming such production.
(dd) A list of the principal creative elements including the cast, musicians, headline performers, conductor, producer, or director.
(ee) A possibility of offering students in Louisiana colleges, universities, and vocational-technical schools an opportunity to work directly in the production in an arts-related position, including a description of possible job or trainee positions working with professional actors, writers, producers, stagehands, directors, or technicians working on all aspects of the production such as lighting, sound, and actual stage work, or working indirectly on the production with professionals in accounting, law, management, and marketing.
(ff) Estimated dates for start and completion of rehearsals before paid performances and the estimated dates of performances in the state.
(gg) Plans, if any, for a national tour or for any performances in other states.
(hh) The companies and financiers to whom the credits shall be allocated and the estimated amounts of the credits to be allocated to each.
(ii) A discussion of any other reasons why the applicant believes the production should be considered a state-certified production as defined in this Section.
(iii) The application for state-certified musical or theatrical facility infrastructure projects shall include:
(aa) An application fee in an amount set in accordance with R.S. 36:104.
(bb) A detailed description of the infrastructure project.
(cc) A preliminary budget, including the manner in which available federal and state incentives will be utilized in the financing or operation of the infrastructure project.
(dd) The companies and financiers to whom the credits shall be allocated and the estimated amounts of the credits to be allocated to each.
(ee) A complete, detailed business plan and market analysis.
(b) Additional information may be requested if deemed necessary by the Department of Economic Development.
(c)(i) The department shall directly engage and assign a certified public accountant to prepare an expenditure verification report on an applicant's cost report of production or project expenditures. The applicant shall be responsible for the payment of an expenditure verification report fee in accordance with R.S. 36:104.1, and shall make all records related to the tax credit application available to the department and the accountant.
(ii) The applicant will be assessed the department's actual cost for the expenditure verification report fee. The maximum fee shall be five thousand dollars for verification of a cost report of production or project expenditures reflecting expenditures of between five thousand dollars and fifty thousand dollars, and the maximum fee shall be fifteen thousand dollars for verification of a cost report reflecting expenditures in excess of fifty thousand dollars.
(iii) At the time of application, the applicant shall be required to submit a deposit of the expenditure verification report fee of two thousand five hundred dollars for a production or project with qualified expenditures projected to be between five thousand dollars and fifty thousand dollars, and a deposit of five thousand dollars for those projected to be in excess of fifty thousand dollars.
(3) In addition to the rules and regulations provided for in Subparagraph (E)(1)(a) of this Section, the secretary of the Department of Economic Development, in consultation with the Department of Revenue, shall adopt and promulgate such other rules and regulations as are necessary to carry out the intent and purposes of this Section in accordance with the general guidelines provided herein.
F. Tax credits shall be subject to disallowance in whole or in part, if the Department of Economic Development finds that a taxpayer has obtained a tax credit in violation of the provisions of this Section, including but not limited to fraud or misrepresentation, as further provided by rule.
G. The Department of Economic Development shall prepare, with input from the Legislative Fiscal Office, a written report to be submitted to the Senate Committee on Revenue and Fiscal Affairs and the House of Representatives Committee on Ways and Means no less than sixty days prior to the start of the Regular Session of the Legislature in 2008, and every second year thereafter. The report shall include the overall impact of the tax credits, the amount of the tax credits issued, the number of net new jobs created, the amount of Louisiana payroll created, the economic impact of the tax credits and the state-certified musical and theatrical productions and infrastructure projects, the amount of new infrastructure that has been developed in the state, and any other factors that describe the impact of the program.
H. Fifty percent of the tax credits annually granted according to the provisions of this Section for infrastructure projects shall be reserved for projects located outside of Jefferson and Orleans parishes, provided that the availability of tax credits for infrastructure projects in Jefferson and Orleans parishes shall not be conditioned upon the granting of infrastructure tax credits for projects outside of those parishes.
I. As a condition for receiving certification of tax credits under this Section, state-certified productions and infrastructure projects may be required to display the state brand or logo, or both, as prescribed by the secretary of the Department of Economic Development.
J. Recovery of credits by the Department of Revenue:
(1) Credits previously granted to a taxpayer but later disallowed by the Department of Economic Development may be recovered by the secretary of the Department of Revenue through any collection remedy authorized by R.S. 47:1561 and initiated within three years from December thirty-first of the year in which the credit was taken.
(2) The only interest that may be assessed and collected on recovered credits is interest at a rate three percentage points above the rate provided for in R.S. 9:3500(B)(1), which shall be computed from the original date of the return on which the credit was taken.
(3) The provisions of this Subsection are in addition to and shall not limit the authority of the secretary of the Department of Revenue to assess or to collect under any other provision of law.
K. No credit shall be granted pursuant to this Section for applications received on or after July 1, 2025.
Acts 2007, No. 482, §1, eff. July 19, 2007; Acts 2009, No. 448, §1, eff. July 8, 2009; Acts 2009, No. 465, §1, eff. July 8, 2009; Acts 2013, No. 197, §§1, 2, eff. July 1, 2013; Acts 2013, No. 418, §1, eff. June 21, 2013; Acts 2015, No. 125, §2, eff. July 1, 2015; Acts 2015, No. 357, §1, eff. June 29, 2015; Acts 2015, No. 361, §2, eff. July 1, 2015; Acts 2015, No. 412, §2; Acts 2016, 1st Ex. Sess., No. 29, §1, eff. April 1, 2016; Acts 2017, No. 396, §§1, 2, eff. July 1, 2017; Acts 2017, No. 400, §§1, 2, and 4, eff. June 26, 2017.
NOTE: See Acts 2015, No. 412, §3, regarding applicability.
NOTE: See Acts 2015, No. 125, §7, regarding applicability.
NOTE: See Acts 2016, 1st Ex. Sess., No. 29, §2, regarding applicability.