2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:6042. Credits; qualifying foster care charitable organizations

RS 47:6042 - Credits; qualifying foster care charitable organizations
A.(1)(a) There shall be allowed a nonrefundable income tax credit for donations a Louisiana taxpayer makes during a taxable year to a qualifying foster care charitable organization. The amount of the credit shall be equal to the actual amount of the donation used by the foster care organization to provide services to qualified individuals, or fifty thousand dollars, whichever is less.
(b) The total amount of credits granted by the department pursuant to the provisions of this Section shall not exceed five hundred thousand dollars per calendar year. The granting of credits shall be on a first-come, first-served basis. If the total amount of credits claimed in any particular calendar year exceeds the amount of tax credits authorized for that year, the excess shall be treated as having been applied for on the first day of the subsequent year. All requests received on the same business day shall be treated as received at the same time, and if the aggregate amount of the requests received on a single business day exceeds the total amount of available tax credits, tax credits shall be approved on a pro rata basis.
(c) The credit may be used in addition to any federal tax credit or deduction earned for the same donation. However, a taxpayer shall not receive any other state tax credit, exemption, exclusion, deduction, rebate, or any other state tax benefit for a donation for which the taxpayer has received a tax credit pursuant to this Section.
(2) If the tax credit earned pursuant to this Section exceeds the total tax liability of a taxpayer in the taxable year, the amount of the credit not used as an offset against the taxpayer's tax liability in the taxable year may be carried forward as a credit against subsequent income tax liabilities for a period not to exceed five taxable years.
B. An organization that seeks to become a qualifying foster care charitable organization shall apply to the department and provide the following:
(1) A statement, signed by an officer of the organization under penalty of perjury, that the organization meets all of the criteria provided in Paragraph (F)(4) of this Section.
(2) A copy of the exemption letter from the Internal Revenue Service verifying the organization is exempt from federal income tax pursuant to Section 501(c)(3) of the Internal Revenue Code.
(3) A copy of the organization's operating budget for the prior operating year and the amount of the budget spent on providing services to qualified individuals.
(4) A copy of any federal income tax return filed by the organization for the prior year.
(5) A copy of the financial statements and detailed schedule of expenses for the organization from the prior year.
(6) A schedule detailing how the organization calculated the percentage of its budget spent on providing services to qualified individuals.
(7) A statement that the organization intends to continue spending at least seventy-five percent of its total budget on providing services to qualified individuals or intends to continue spending at least seventy-five percent of its funds budgeted for Louisiana on providing services to qualified individuals and that one hundred percent of the donations it receives from Louisiana residents will be spent on providing services to qualified individuals.
(8) Any other information required by the department.
C.(1) No later than the next January thirty-first following approval by the department and annually thereafter no later than January thirty-first, each foster care organization shall file a report with the department prepared by an independent certified public accountant who is not related to a donor or affiliated with the foster care organization.
(2) Each report required pursuant to Paragraph (1) of this Subsection shall contain the following:
(a) A certification that the organization continues to meet the requirements of this Section.
(b) The name, social security number, address, and Louisiana and federal taxpayer identification numbers of each person who made a donation to the foster care organization during the prior calendar year.
(c) The amount of each donation received during the prior calendar year.
(d) The amount of each donation utilized during the prior calendar year to provide services to qualified individuals and the services provided.
(e) Any other information or documentation required by the department.
D.(1) A qualified foster care charitable organization shall issue a receipt to each person from whom the foster care organization receives a donation. The receipt shall indicate the actual amount of the donation that was used by the foster care organization to provide services to qualified individuals. A taxpayer shall provide a copy of the receipt to the department when claiming the credit authorized by this Section.
(2) The department shall provide a standardized format for the receipt required pursuant to this Subsection.
E. The secretary of the department may promulgate rules in accordance with the provisions of the Administrative Procedure Act to implement the provisions of this Section.
F. 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) "Louisiana taxpayer" or "taxpayer" means a person who is required to file a Louisiana income tax return.
(3) "Qualified individual" means a child in a foster care placement program established by the Department of Children and Family Services.
(4) "Qualifying foster care charitable organization" or "foster care organization" means an organization that meets all of the following criteria:
(a) Is exempt from federal income tax pursuant to Section 501(c)(3) of the Internal Revenue Code.
(b) Provides services to at least twenty-five qualified individuals each operating year.
(c) Spends at least seventy-five percent of its total budget on providing services to qualified individuals or spends at least seventy-five percent of its funds budgeted for Louisiana on providing services to qualified individuals and the organization certifies to the department that one hundred percent of the donations it receives from Louisiana residents will be spent on providing services to qualified individuals.
(d) Is approved by the department after applying as provided in Subsection B of this Section.
(5) "Services" means cash assistance, medical care, child care, food, clothing, shelter, job placement, and job-training services or any other assistance reasonably necessary to meet immediate basic needs that are provided to a qualified individual and used in Louisiana.
Acts 2021, No. 378, §1, eff. Jan. 1, 2022.