2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:1524. Tax credit registry; requirements; limitations

RS 47:1524 - Tax credit registry; requirements; limitations
A. Purpose. The intent of this Section is to provide for a centralized registration and recordation system for transferable tax credits granted, issued, and authorized by the state of Louisiana. The provisions of this Section shall be known and cited as the "Louisiana Tax Credit Registry Act".
B. Definitions. For purposes of this Section, the following words shall have the following meanings unless the context clearly indicates otherwise:
(1) "Department" means the Department of Revenue.
(2) "Identification number" means a unique identifying number that shall be assigned to each tax credit certificate registered in the registry. A tax credit's identification number shall remain associated with the tax credit from the time the credit is originally entered into the registry through any claim, transfer, or refund associated with the credit, until such time as the tax credit is fully redeemed.
(3) "Secretary" means the secretary of the Department of Revenue.
(4) "Tax credit" means any transferable tax credit granted, issued, and authorized by the state applied against taxes collected by the department.
(5) "Tax credit certificate" means any document granting tax credits issued by a state agency administering a tax credit program, including but not limited to tax credit certification letters which shall include the name of the individual or entity issued the tax credit, the amount of the tax credit, and any other identifying information regarding the tax credit.
(6) "Transfer" means an assignment, disposition, transfer, or allocation of tax credits.
(7) "Transferee" means an individual or entity that receives a transfer of tax credits.
(8) "Transferor" means an individual or entity that makes a transfer of tax credits.
C. Administration. (1) There is hereby established a central tax credit registry, hereinafter referred to as "registry", within the department for the registration and recordation of tax credits granted, issued, and authorized by the state and any subsequent transfers.
(2) Beginning January 1, 2014, all state agencies issuing tax credits to be applied against taxes collected by the department shall promptly send a copy of any newly granted, issued, or authorized tax credit certificates to the department. Upon receipt of this information, the department shall assign an identifying number to each tax credit, and shall record the tax credit into the registry along with the name of the individual or entity issued the tax credit, the amount of the tax credit, and any other information deemed necessary by the secretary.
(3) Any state agency that issues or authorizes tax credits shall remit an electronic report on forms prescribed by the secretary no later than January 31, 2014, of all tax credit certificates issued prior to January 1, 2014. The department shall endeavor to record all tax credit transfers which occurred prior to January 1, 2014, into the registry.
D. Transfers. (1) Joint notice from the transferor and the transferee of all tax credit transfers shall be submitted to the department, including additional information that the secretary deems necessary and appropriate. Upon receipt of the applicable tax credit information, the department shall record the transfer of the tax credit by recording the applicable identification numbers, the name of the transferor and transferee, the amount of the tax credits being transferred, and any other information deemed necessary by the secretary.
(2) Notwithstanding any other provision of law to the contrary, no issuance, sale, or transfer of tax credits after January 1, 2014, shall be effective as between the transferor and transferee, or as to third parties or the department until it has been recorded in the registry.
(3) Repealed by Acts 2015, No. 129, §3, eff. Jan. 1, 2016.
E. Disallowance and recapture of tax credits. (1) A tax credit shall be disallowed and recaptured if the department or state agency issuing the tax credit finds that an individual or entity obtained a tax credit in violation of the provisions of the statute authorizing issuance of the tax credit, including but not limited to fraud or misrepresentation. Any tax credit previously granted to an individual or entity but later disallowed may be recovered by the secretary pursuant to the provisions of R.S. 47:1561. The provisions of this Subsection are in addition to and shall not limit the authority of the secretary of the department to assess, collect, or recapture under any other provision of law.
(2) If the transferor of a tax credit did not have the right to claim or use the tax credit at the time of the transfer, the transferee's recourse shall be against the transferor, as provided by agreement of the parties. The department shall warrant the validity of the information recorded in the registry for credits issued after January 1, 2014. A good faith transferee, as determined by the department at the time of transfer, that relied on the validity of the credits recorded in the registry shall not be subject to the provisions of this Subsection. For purposes of this Subsection, "good faith" shall mean honesty in fact and the observance of reasonable commercial standards of fair dealing.
(3) Notwithstanding any other provision of law, the department may recapture any amounts and other damages from any individual or entity determined not to be in good faith as provided for in Paragraph (2) of this Subsection.
F. Prescription. (1) In case of disputed title to tax credits, prescription against assessment shall be suspended by any of the following:
(a) The filing of a summary proceeding in any state or federal court.
(b) A written agreement between all interested taxpayers and the secretary.
(c) The filing of any pleading, either by the secretary or any taxpayer, with the Board of Tax Appeals.
(2) Prescription shall begin to run again upon the issuance of a final administrative decision or a judgment that has become final and nonappealable.
G. Registry access. Information contained in the registry and in the possession of the department regarding the ownership of tax credits, all transfers of tax credits, and the amount of tax credits shall be deemed privileged and confidential under the provisions of R.S. 47:1508 and shall not be available to the public; however, the provisions of this Subsection shall not be construed to prevent information relative to the entity or individual initially issued the tax credit, the initial amount of the tax credit, and any information regarding any transfer of the tax credit from being released to the public pursuant to a public records request submitted to the state agency administering the tax credit program pursuant to the Public Records Law, R.S. 44:1 et seq. The data compiled in the registry shall be available for cross-referencing by other state agencies; however, state agencies shall apply to the department for access to the registry and shall be subject to any permissions, restrictions, and conditions as determined by the department. Upon application by a transferor, on a form prescribed by the secretary, the department shall provide information sufficient to certify the transferor is the record owner of tax credits issued on or after January 1, 2014, which are registered in the transferor's name in the registry. The secretary shall prescribe the application required by the provisions of this Subsection to be submitted by a transferor to certify the record owner of tax credits.
H. Rules. The secretary of the department may promulgate rules and regulations in accordance with the Administrative Procedure Act as may be necessary to implement the provisions of this Section.
Acts 2013, No. 418, §1, eff. June 21, 2013; Acts 2015, No. 129, §§1, 3, eff. Jan. 1, 2016; Acts 2015, No. 144, §1, special eff. date.