2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:297. Reduction to tax due

RS 47:297 - Reduction to tax due
A. The tax determined as provided in this Part shall be reduced by seventy-two dollars for any taxpayer, taxpayer's spouse, or dependent who is deaf, blind, mentally incapacitated, or has lost the use of one or more limbs. Only one credit is allowed for any one person.
B. The tax determined as provided in this Part shall be reduced by the following: a credit for the elderly, a credit for contributions to candidates for public office, an investment credit, a credit for foreign tax, a work incentive credit, jobs credit, and residential energy credits. The amount of these credits shall be the lesser of eighteen dollars or seven percent of the same credits allowed on the federal income tax return for the same taxable period.
C.(1) There shall be allowed to an individual, as a credit against the tax imposed by this Chapter for the taxable year, an amount equal to seventy-two percent of the state gasoline and motor fuels taxes and special fuels taxes paid to operate or propel a commercial fishing boat. The credit shall not be allowed for any such taxes for which a refund has been claimed pursuant to the provisions of Part VIII of Chapter 18 of this Subtitle.
(2) For purposes of this credit, "commercial fishing boat" shall mean any watercraft used in the occupation of fishing for profit.
(3) The secretary of the Department of Revenue shall promulgate such rules and regulations as may be deemed necessary to carry out the purposes of this Subsection.
D. In addition to any other credits against the tax payable on net income which the law allows to an individual taxpayer, until January 1, 2017, the taxpayer shall be entitled to the tax credit against the tax payable on net income provided for as follows:
(1) A taxpayer required to file a resident Louisiana tax return may claim a tax credit for educational expenses incurred before January 1, 2017, for each child attending kindergarten, elementary, or secondary school kindergarten through twelfth grade located in Louisiana, if the child qualifies as a dependency exemption on the taxpayer's Louisiana income tax return unless the deduction for the payment of tuition and fees for nonpublic elementary and secondary school tuition is taken for the child as provided for in R.S. 47:297.10.
(2) Any taxpayer who so qualifies shall be entitled to a maximum tax credit of eighteen dollars per child for educational expenses.
(3) Notwithstanding any other provision of law to the contrary, including but not limited to any contrary provisions of this Section, for the tax years beginning on or after January 1, 2000 and prior to January 1, 2006, the tax credit provided pursuant to the provisions of this Subsection shall be inapplicable, inoperable, and of no effect.
E. The amount of the credit allowed in this Section shall not exceed the total income tax liability of the taxpayer.
F. Repealed by Acts 2019, No. 202, §2, eff. June 11, 2019.
G. There shall be an environmental equipment purchase tax credit to be determined as follows:
(1) Any individual taxpayer required to file a Louisiana tax return, acting as a business entity authorized to do business in the state, operating as either a sole proprietorship, a partner in a partnership, or as a Subchapter S Corporation, and subject to the personal income tax imposed by this Part, shall be allowed a tax credit for the purchase of environmental equipment designed to recover or recycle chlorofluorocarbons used as refrigerants in commercial, home, and automobile air-conditioning systems, refrigeration units, and industrial cooling applications.
(2) The tax credit shall be fourteen percent of the purchase price of the equipment if paid for in a single taxable year. If the equipment purchase is financed over two or more taxable years, the tax credit in a taxable year shall be fourteen percent of that portion of the original purchase price paid in that taxable year. For partnerships and Subchapter S Corporations, the tax credit shall proportionately pass through to each partner or shareholder in the same percentage in which other shares of income, gain, loss, deduction or credit are distributed in accordance with the partnership or shareholder agreement.
(3) All environmental equipment for which a tax credit is sought shall conform with technical standards set by the secretary of the Department of Environmental Quality. The secretary of the Department of Revenue shall utilize those standards in the promulgation of such rules and regulations as may be deemed necessary to carry out the purposes of this Subsection.
(4) The tax credit allowed by this Subsection shall apply only to equipment purchased between July 1, 1989 and December 31, 1991. The credit for equipment purchased prior to January 1, 1991 shall be claimed on either an amended return for the applicable tax year or in the first taxable year filing following January 1, 1991.
H.(1) The tax determined as provided in this Part shall be reduced by the lesser of the tax due or three thousand six hundred dollars per taxable year up to a maximum of five years for each taxpayer meeting all of the following criteria.
(2) The taxpayer shall:
(a) Be a certified medical primary care health professional who is a physician possessing an unrestricted license from this state to practice medicine, a primary care physician assistant licensed by this state, a dentist licensed by this state to practice dentistry, an optometrist who is licensed by this state, or a primary care nurse practitioner who is licensed by this state.
(b) If a medical physician or nurse practitioner, establish and maintain, after July 1, 1991, or, if a physician assistant or optometrist, establish and maintain after July 1, 2019, the primary office of his practice within an area that is both:
(i) A primary care high needs geographic health professional shortage area (HPSA) as designated by the U.S. Department of Health and Human Services' Health Resources and Services Administration's Bureau of Health Workforce, Division of Policy and Shortage Designation (DPSD) as per Section 332 of the Public Health Service Act.
(ii) A rural area as defined in rules promulgated by the Louisiana Department of Health.
(c) If a dentist, establish and maintain, after July 1, 2002, the primary office of his practice within an area which is designated as a Dental Health Professional Shortage Area (HPSA) by the U.S. Department of Health and Human Services' Health Resources and Services Administration's Bureau of Health Workforce, Division of Policy and Shortage Designation (DPSD) as per Section 332 of the Public Health Service Act and a rural area as defined in rules promulgated by the Louisiana Department of Health. Subject to the limits of Paragraph (3) of this Subsection, the provisions of this Subsection will continue to be available to the dentist if the Dental HPSA designation is withdrawn after the practice is established at that location.
(d) Agree to practice under the conditions set forth herein for a period of not less than three years. The tax reduction provided herein shall continue to be available for two additional years if the remaining conditions of this Subsection continue to be met.
(e) Accept Medicaid and Medicare payments for services rendered.
(3) The provisions of this Subsection shall be available to a physician, primary care nurse practitioner, primary care physician assistant, optometrist, or dentist for only one relocation and only for a maximum of five years. In the event that the physician, primary care nurse practitioner, primary care physician assistant, optometrist, or dentist ceases to comply with these provisions within the three-year period, all taxes reduced hereunder shall be subject to recapture pursuant to rules promulgated by the department.
(4) The Louisiana Department of Health shall be responsible for receiving and evaluating applications for the credit and certifying the qualifications and eligibility of taxpayers for the credit. The tax credit shall be earned when the taxpayer's eligibility is certified by the Louisiana Department of Health. However, in the event the taxpayer does not maintain the requirements of this Section any amounts certified are subject to disallowance or recapture. No taxpayer shall receive the credit provided pursuant to this Subsection for more than five years. The Department of Revenue, in consultation with the Louisiana Department of Health, shall promulgate rules and regulations in accordance with the Administrative Procedure Act as are necessary for the performance of these functions in keeping with the purpose for which the credit is enacted. The rules shall include provisions for an application process through which the Louisiana Department of Health may certify the eligibility of a primary care health professional for receipt of the tax credit and the qualification of a primary care health professional to claim the credit against state tax liability.
(5) The total amount of tax credits certified by the Louisiana Department of Health and granted by the Department of Revenue in any calendar year shall not exceed one million five hundred thousand dollars. The rules and regulations promulgated pursuant to the provisions of this Section shall establish the method of allocating available tax credits to primary care health professionals including but not limited to a first-come, first-served system, reservation of tax credits for a specific time period, or other method which the departments may find beneficial.
(6) The provisions of this Subsection shall be subject to a review by the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs. Such review may include an evaluation of the increase or decrease in primary care health professionals who meet the qualifications of this Subsection.
(7) No credit shall be certified pursuant to the provisions of this Subsection for applications received by the Louisiana Department of Health on or after January 1, 2021.
I. There shall be a bone marrow donor expense tax credit for any individual taxpayer required to file a Louisiana tax return, acting as a business entity authorized to do business in the state, operating as either a sole proprietorship, a partner in a partnership, or as a Subchapter S Corporation, for bone marrow donor expense to be determined as follows:
(1) As used in this Subsection, the following definitions shall apply:
(a) "Bone marrow donor expense" means the sum of amounts paid or incurred during the tax year by an employer for the following:
(i) Development of an employee bone marrow donation program.
(ii) Employee education related to bone marrow donation, including but not limited to the need for donors and an explanation of the procedures used to determine tissue type and donate bone marrow.
(iii) Payments to a health care provider for determining the tissue type of an employee who agrees to register or registers as a bone marrow donor.
(iv) Wages paid to an employee for time reasonably related to tissue typing and bone marrow donation. However, any wages that are used to obtain any tax credit provided in this Section shall not be deductible as an expense for income tax purposes.
(v) Transportation of an employee to the site of a donation or any other service which is determined by the Louisiana Department of Health by rule as essential for a successful bone marrow donation.
(b) "Employee" means an individual:
(i) Who is regularly employed by the taxpayer for more than twenty hours per week.
(ii) Who is not a temporary or seasonal employee.
(iii) Whose wages are subject to withholding under R.S. 47:111 through 120.3.
(c) "Wages" has the meaning given the term for purposes of R.S 47:111 through 120.3.
(2) A credit against the taxes otherwise due under this Part for the tax year is allowed to an employer. The amount of the credit is equal to eighteen percent of the bone marrow donor expense paid or incurred during the tax year by an employer to provide a program for employees who are potential bone marrow donors or who actually become bone marrow donors.
(3)(a) Except as provided in Subparagraph (3)(b) of this Subsection, the allowance of a credit under this Subsection shall not affect the computation of taxable income for purposes of this Part.
(b) If in determining the amount of the credit for any tax year an amount allowed as a deduction under Section 170 of the Internal Revenue Code is included in bone marrow donor expense, the amount allowed as a deduction shall be added to federal taxable income.
J.(1) There shall be a tax credit for any individual taxpayer required to file a Louisiana tax return, for educational expenses associated with attending college, to be determined as follows.
(2) As used in this Subsection, the following definitions shall apply:
(a) "Qualifying taxpayer" means any of the following:
(i) A full-time employee of the office of state police as defined in R.S. 40:1372(5) and 1379.
(ii) A deputy sheriff eligible for state supplemental pay under R.S. 40:1667 et seq.
(iii) A municipal police officer eligible for state supplemental pay under R.S. 40:1667 et seq.
(iv) A full-time commissioned probation and parole agent of the division of probation and parole-adult, Department of Public Safety and Corrections.
(b) "Educational expenses" means the sum of amounts paid or incurred during the taxable year by a qualifying taxpayer for tuition, fees, and textbooks associated with that taxpayer's attendance at a Louisiana public college or university or an independent college or university which is an accredited member institution of the Louisiana Association of Independent Colleges and Universities.
(3) A credit against the taxes otherwise due under this Chapter for the taxable year is allowed to a qualifying taxpayer meeting all of the following criteria. The qualifying taxpayer shall:
(a) Attend a Louisiana public college or university or an independent college or university which is an accredited member institution of the Louisiana Association of Independent Colleges and Universities.
(b) Personally incur educational expenses as defined.
(c) Maintain evidence of payment of such educational expenses.
(d) Be in the pursuit of an undergraduate degree related to law enforcement and maintain at least a 2.5 grade point average while taking a minimum of six credit hours per semester.
(4) The amount of the credit per tax year is equal to the least of the tax due, or seventy-two percent of the educational expenses, or five hundred forty dollars.
K.(1) There shall be a credit against the tax liability due under this Chapter, as provided in this Subsection, for each taxpayer who provides full-time employment to an individual who has been convicted of a first time drug offense and who is less than twenty-five years of age at the time of initial employment.
(2)(a) The credit shall be one hundred forty-four dollars per taxable year per eligible employee.
(i) Only one credit is allowed per taxable year per employee.
(ii) The credit may be received for a maximum of two years per employee.
(b) The credit shall be available upon certification by the employee's probation officer that the employee has successfully completed a court-ordered drug treatment/rehabilitation program, and has worked one hundred eighty days full time for the employer seeking the credit.
(c) The form for applying for the credit shall be determined by the Department of Revenue and such form shall contain a sworn statement executed by both employer and employee certifying the employee's active full-time work status at the time the credit is taken.
(d) The secretary of the Department of Revenue shall promulgate such rules and regulations as may be deemed necessary to carry out the purposes of this Subsection.
(3) As used in this Subsection, the following terms shall have the following meanings:
(a) "Drug offense" means a violation under R.S. 40:961 et seq., the Uniform Controlled Dangerous Substances Law.
(b) "Full-time employment" means working a minimum of thirty hours per week.
(c) "Eligible employee" and "employee" mean an individual convicted of a first time drug offense who is less than twenty-five years of age at the time of initial employment.
L.(1) There shall be a credit against the tax liability due under this Chapter for each qualified taxpayer for the purchase of a bulletproof vest. Only one such credit shall be allowed to a qualified taxpayer for the five-year period beginning with the purchase of a bulletproof vest as provided for in this Subsection.
(2) A "qualified taxpayer" as used in this Subsection means any of the following:
(a) A full-time employee of the office of state police as defined in R.S. 40:1372(5) and 1379.
(b) A deputy sheriff eligible for state supplemental pay under R.S. 40:1667 et seq.
(c) A municipal police officer eligible for state supplemental pay under R.S. 40:1667 et seq.
(d) A full-time commissioned probation and parole agent of the division of probation and parole, Department of Public Safety and Corrections.
(e) A commissioned investigator in the Department of Justice.
(3) The total amount of the credit shall be the lesser of seventy-two percent of the purchase price including applicable taxes paid by the taxpayer or seventy-two dollars. In order to claim the tax credit provided in this Subsection, the qualified taxpayer must submit a certification from his employer that:
(a) Certifies that the qualified taxpayer meets the qualifications of this Subsection.
(b) Certifies that the bulletproof vest is used in the performance of the qualified taxpayer's job.
(c) Certifies that the purchase price is reasonable and was not paid by the employer.
(d) Certifies that the employer does not provide access to bulletproof vests to the qualified taxpayer for the performance of his duties.
NOTE: Subsection M as enacted by Acts 2002, No. 54, §1, eff. if and when a special fund is enacted to finance the credit provided for in the Act.
M.(1) There shall be allowed a credit against the individual income tax for amounts paid as premiums for eligible long-term care insurance. The amount of the credit shall be equal to seven percent of the total amount of premiums paid annually by each individual claiming the credit.
(2) The credit authorized by this Subsection shall not exceed the total tax liability in any taxable year.
(3) Each taxpayer applying for the credit shall complete a form to be determined by the Department of Revenue stating the amount of premiums paid and the name of the insurer providing the coverage.
(4) The secretary of the Department of Revenue shall promulgate such rules and regulations as may be deemed necessary for the implementation of this Section.
(5) For purposes of this Section, the term "long-term care insurance" shall mean, at a minimum, any insurance or rider advertised, marketed, offered, or designed to provide coverage for not less than three consecutive years for each covered person on an expense incurred, indemnity, prepaid, or other basis for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a nursing home. The insurance may, additionally, provide coverage for said person in alternative settings, such as adult residential care homes, home health care, and adult day care.
(6) In order for premiums to qualify for credit under this Section, the long-term care insurance policy shall:
(a) Have been approved by the commissioner of insurance for sale in this state.
(b) Have complied with the requirements of R.S. 22:972, 973, 975 through 983, 985 through 990, 992, 993, 999 through 1008, 1010 through 1014, 1021 through 1042, 1044 through 1048, 1091 through 1096, 1111, and 1156 of Title 22 of the Louisiana Revised Statutes of 1950.
(c) Have qualified as a long-term care insurance contract as defined in Section 7702B(b) of the Internal Revenue Code of 1986 for a federal tax credit.
N.(1) There shall be allowed a credit against individual income tax due in a taxable year equal to seventy-two percent of the following amounts incurred by a taxpayer during his tax year if related to the taxpayer's travel or absence from work because of a living organ donation by the taxpayer or the taxpayer's spouse:
(a) The unreimbursed cost of travel paid by the taxpayer to and from the place where the donation operation occurred.
(b) Unreimbursed lodging expenses paid by the taxpayer.
(c) Wages or other compensation lost because of the taxpayer's absence during the donation procedure and convalescence.
(2) The credit provided for by this Section shall not exceed seven thousand two hundred dollars per organ donation. It shall be allowed against the income tax for the taxable period in which the credit is earned. If the tax credit exceeds the amount of such taxes due, then any unused credit may be carried forward as a credit against subsequent tax liability for a period not to exceed ten years.
O. There shall be allowed to an individual who is an employer a credit against the tax imposed by this Chapter for the taxable year the same credits provided for in R.S. 47:287.752 for the full-time employment of individuals who have been convicted of first time nonviolent offenses. The credit shall be the same amount and shall be subject to the same terms and conditions as provided for in that Section.
P.(1) There shall be allowed a credit against the individual income tax liability of a taxpayer for the inclusion of accessible and barrier-free design elements in either the construction of a new one- or two-family dwelling or the renovation of an existing dwelling if the taxpayer, the taxpayer's spouse, or an individual who qualifies as a dependent of the taxpayer for purposes of determining the taxpayer's federal income tax liability and who resides with the taxpayer has a physical disability that requires, or will require, the inclusion of such accessible and barrier-free design elements in the dwelling. For purposes of this Subsection, "taxpayer" shall mean an individual who owns a newly constructed one- or two-family dwelling, or the existing dwelling that is renovated, and who qualifies for and claims a homestead exemption on a dwelling which meets all of the design elements necessary for claiming the tax credit authorized by the provisions of this Subsection. If the dwelling is co-owned in indivision by two or more taxpayers who qualify for and claim a homestead exemption on the dwelling, the credit allowed to each taxpayer shall be limited to the pro-rata ownership interest of the taxpayers.
(2) The amount of the credit shall be five thousand dollars, or the cost of the construction or renovation, whichever is less. The credit shall be taken in the taxable year in which the construction or renovation of the dwelling is completed. Only one tax credit may be granted per dwelling. If the amount of the credit authorized by this Paragraph exceeds the amount of tax liability for the tax year, the amount of unused credit may be carried forward as a credit against subsequent Louisiana individual income tax liability for a period not to exceed five years.
(3) A newly constructed dwelling that meets all of the following requirements, or a renovated dwelling that meets any of the following requirements, shall be deemed to include accessible and barrier-free design elements for purposes of the tax credit:
(a) It has one zero-step entrance at the front, back, or side of the residence.
(b) All main floor doors have a clear passage space of at least thirty-two inches between doorjambs and strikes with the door at a ninety degree angle.
(c) All hallways and passages on the main floor have at least thirty-six inches of clear width to the accessible bathroom and eating area.
(d) The main floor has, at a minimum, a half bath with a minimum five-foot diameter of free and clear floor space.
(4) The secretary of the Department of Revenue is authorized to promulgate rules and regulations in accordance with the Administrative Procedure Act, which rules and regulations may include a requirement that taxpayers submit such documentation with their returns, or to specifically retain such records that will enable the department to determine the taxpayer's eligibility for and amount of the tax credit claimed under this Section.
(5) Notwithstanding any other provision of law to the contrary, the taxpayer shall be allowed to claim the tax credit if any individual in the taxpayer's household has a physical disability that requires, or will require, the inclusion of accessible and barrier-free design elements in the dwelling, provided that such individual who, for the taxable year of the taxpayer, has as his principal place of abode the home of the taxpayer and can be identified as a member of the taxpayer's household.
(6) Notwithstanding any other provision of law to the contrary, the taxpayer shall be allowed to claim the tax credit in any case where there is a valid and enforceable contract of lease, as defined in Civil Code Article 2668, between the taxpayer and any individual who has a physical disability that requires, or will require, the inclusion of accessible and barrier-free design elements in the dwelling and who occupies and resides in any portion of such dwelling pursuant to the terms of the contract of lease.
(7) The total amount of tax credit granted by the department in any calendar year shall not exceed five hundred thousand dollars. Claims for tax credits shall be allowed on a first-come, first-served basis. Any taxpayer whose claim exceeds the amount of tax credit that the department is authorized to grant in a calendar year may claim the credit against the individual income tax liability on an original tax return filed in the next calendar year and his claim shall have priority over other claims filed after the date and time of his original claim.
Q. The credits provided for pursuant to the provisions of this Section shall terminate and shall have no effect beginning January 1, 2020.
Acts 1980, No. 316, §1; Acts 1983, No. 672, §2, eff. Jan. 1, 1983. Acts 1984, 1st Ex. Sess., No. 9, §2, eff. Jan. 1, 1984; Acts 1986, No. 990, §1, eff. Jan. 1, 1986; Acts 1986, No. 986, §1, eff. Jan. 1, 1986; HCR No. 52, 1988 R.S.; HCR No. 78, 1989 R.S., eff. June 27, 1989; Acts 1990, No. 360, §1, eff. July 1, 1990; Acts 1991, No. 312, §1, eff. Jan. 1, 1991; Acts 1991, No. 1059, §1, eff. for taxable years beginning after Dec. 31, 1990; Acts 1992, No. 206, §2; Acts 1992, No. 1030, §1, eff. July 13, 1992; Acts 1993, No. 164, §1, eff. for all taxable years beginning after Dec. 31, 1992; Acts 1994, No. 21, §1, eff. July 1, 1994; Acts 1994, No. 23, §1, eff. for taxable periods beginning on or after Jan. 1, 1995; Acts 1994, 3rd Ex. Sess., No. 104, §1, eff. for all taxable years beginning or or after Jan. 1, 1994; Acts 1998, No. 20, §1, eff. for all taxable periods beginning after Dec. 31, 1997; Acts 2002, No. 25, §1 (Sub. B) eff. for all taxable periods beginning on or after Jan. 1, 2003 and §2 (Para. (D)(3)), eff. for all taxable periods beginning after Dec. 31, 2001; Acts 2002, No. 54, §1; Acts 2002, No. 72, §1, eff. June 25, 2002; Acts 2005, No. 277, §1, eff. July 1, 2005, for organ donations occurring during tax years beginning on and after Jan. 1, 2005; Acts 2005, No. 285, §1, eff. June 29, 2005, applicable to tax years beginning on and after Jan. 1, 2005; Acts 2008, No. 415, §2, eff. Jan. 1, 2009; Acts 2011, No. 392, §1; Acts 2014, No. 158, §§3 and 7; Acts 2015, No. 125, §2, eff. July 1, 2015;§5, eff. July 1, 2018; Acts 2015, No. 140, §1, eff. June 19, 2015; Acts 2016, 1st Ex. Sess., No. 29, §2; Acts 2017, No. 270, §1, eff. Jan. 1, 2018; Acts 2017, No. 342, §1, eff. Jan. 1, 2018; Acts 2017, No. 375, §§1, 2, eff. June 23, 2017; Acts 2017, No. 400, §§1, 2 and 4, eff. June 26, 2017; Acts 2017, No. 403, §2, eff. June 26, 2017; Acts 2019, No. 202, §2, eff. June 11, 2019; Acts 2019, No. 338, §1.
NOTE: For (G) see also R.S. 47:287.756.