§3085. Tax credit

A. Qualifying individuals or businesses that invest in an LCDFI as defined by R.S. 51:3084(9) may earn, apply for, and be granted a tax credit on any personal income, corporate income, or corporation franchise tax liability. The credit may be transferred.

B.(1)(a) The tax credit shall be calculated by the commissioner as fifty-four percent of the person's investment for the purposes of earning tax credits.

(b) An investment for the purpose of earning tax credits must be at risk and not secured or guaranteed; however, such investment may be in the form of cash in exchange for nonvoting shares of stock in the LCDFI.

(2) The total tax credits granted shall not result in a reduction of total tax revenues of greater than five million dollars for the fiscal years of 2005-2006 through 2006-2007. The total tax credits granted shall not result in a reduction of total tax revenues of greater than five million dollars for each of the fiscal years 2007-2008 through 2008-2009.

(3) If this Subsection will limit the amount of investments in LCDFIs for which tax credits are allowed, the amount of capital for which tax credits are allowed will be allocated among the LCDFI requesting tax credits for their investors. Requests for allocation shall be prepared for filing not later than December first on a form prescribed by the commissioner, which form shall include an affidavit by the investor pursuant to which such investor shall become legally bound and irrevocably committed to make an investment of certified capital subject only to receipt of an allocation pursuant to this Subsection. Any requests for allocation filed with the commissioner before December first shall be deemed to have been filed on December first. Allocations shall be granted to LCDFIs on a pro rata basis.

(4) Any unused allocation from a previous year may be carried forward until the next year.

C. The amount of the tax credit which exceeds personal income, corporate income, or corporation franchise tax liability for the taxable year for which credits are allowed that are not used by such person for the taxable year in which such credits are granted may be carried forward to subsequent years until the credits are exhausted; however, the reduction in any taxable year shall not exceed the tax liability for such taxable year. The recipient of any transferred tax credit shall only take such credit as a reduction of the tax liability of the recipient for any taxable year.

D. The LCDFI shall include in any offering involving the sale of shares to an investor, the following statement: "The state of Louisiana is not liable for damages to a person who makes an investment in a Louisiana Community Development Financial Institution. Use of the words "Community" or "Louisiana" in an offering does not constitute a recommendation or endorsement of the investment by the Louisiana Office of Financial Institutions or the Louisiana Department of Revenue."

E. Notwithstanding any provision of this Chapter to the contrary, proceeds of tax exempt bonds which are invested in a LCDFI shall not be considered equity for the purposes of determining tax credits under this Chapter.

Acts 2005, No. 491, §1, eff. July 12, 2005; Acts 2007, No. 345, §2, eff. June 30, 2007; Acts 2015, No. 125, §3, eff. July 1, 2015;§6, eff. July 1, 2018; Acts 2016, 1st Ex. Sess., No. 29, §2, eff. April 1, 2016; Acts 2017, No. 400, §§1, 4, eff. June 26, 2017.

NOTE: See Acts 2016, 1st Ex. Sess., No. 29, §2, regarding effectiveness.