§ 45:1325 — Corporation status; tax exempt

§1325. Corporation status; tax exempt
A. The corporation shall be a public corporation and an instrumentality of the state.
The corporation's purpose and function is an integral part of the state. The corporation shall
be exempt from any state corporate income tax and corporate franchise tax. The system
restoration charges, their collection, their sale and transfer, and the income therefrom shall
at all times be free from taxation of every kind by the state and any political subdivision or
other instrumentality thereof. However, the corporation is not and shall not be deemed a
department, unit, agency, board, or commission of the state nor a political subdivision. All
debts, claims, obligations, and liabilities of the corporation, whenever and however incurred,
shall be the debts, claims, obligations, and liabilities of the corporation only, and not of the
state, its agencies, officers, or employees. System restoration charges authorized by the
commission shall be regulatory fees designed to implement a regulatory program for the
public good and shall not be considered taxes intended to raise revenue for the maintenance
of government or governmental services. Corporation funds shall not be considered part of
the general fund of the state, and the state shall not budget for or provide general fund
appropriations to the corporation.
B. Any system restoration bonds issued under the provisions of this Part by the issuer
on behalf of the corporation, their transfer, and the income therefrom, including any profit
made on the sale thereof, shall at all times be free from taxation of every kind by the state
and any political subdivision or other instrumentality thereof.
C. Because it is essential for the corporation to have the maximum financial
resources to provide contributions as described in this Part following catastrophic natural
disasters, it is the intent of the legislature that the corporation, as an instrumentality of the
state, be exempt from federal income taxation.

Legislative History

Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.