§ 47:287.753 — Neighborhood assistance tax credit

Louisiana § 47:287.753

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§287.753. Neighborhood assistance tax credit
A. The following words and phrases used in this Section, unless a different meaning
is plainly required by the context, shall have the following meanings:
(1) "Business firm" means any business entity authorized to do business in the state
of Louisiana and subject to the state corporation income tax imposed by the provisions of
Title 47 of the Louisiana Revised Statutes of 1950.
(2) "Community services" means any type of counseling and advice, emergency
assistance, or medical care furnished to individuals or groups in the state of Louisiana.
(3) "Crime prevention" means any activity which aids in the reduction of crime in
the state of Louisiana.
(4) "Education" means any type of scholastic instruction or scholarship assistance
to an individual who resides in the state of Louisiana that enables him to prepare himself for
better opportunities.
(5) "Job training" means any type of instruction to an individual who resides in the
state of Louisiana that enables him to acquire vocational skills so that he can become
employable or be able to seek a higher grade of employment.
(6) "Neighborhood assistance" means furnishing financial assistance, labor, material,
or technical advice to aid in the physical improvement or rehabilitation of any part or all of
a neighborhood area.
(7) "Neighborhood organization" means any organization which performs
community services in the state of Louisiana and which is:
(a) Determined by the Internal Revenue Service to be exempt from income taxation
under the provisions of the Internal Revenue Code.
(b) Incorporated in the state of Louisiana as a nonprofit corporation under the
provisions of R.S. 12:201 et seq.
(c) Designated as a community development corporation by the United States
government under the provisions of Title VII of the Economic Opportunity Act of 1964.
(8) "Neighborhood" means a specific geographic area, urban, inter-urban, suburban,
or rural as certified by the Division of Community Development of the Department of
Consumer Affairs regulation and licensing, which is experiencing problems endangering its
existence as a viable and stable neighborhood.
B. Any business firm engaged in the activities of providing neighborhood assistance,
job training, education for individuals, community services, or crime prevention in the state
of Louisiana shall receive a tax credit as provided in Subsection C, if the commissioner of
administration or his successor annually approves the proposal of the business firm. No
proposal shall be approved unless endorsed by the agency of local government within the
area in which the business firm is engaging in such activities, which has adopted an overall
community or neighborhood development plan, as being consistent with such plan. The
proposal shall set forth the program to be conducted, the neighborhood area to be served,
why the program is needed, the estimated amount to be invested in the program, and the
plans for implementing the program. If, in the opinion of the commissioner of administration
or his successor, a business firm's investment can more consistently be made through
contributions to a neighborhood organization as defined in Subsection A(7), tax credits may
be allowed as provided in Subsection C. The commissioner of administration or his
successor is hereby authorized to promulgate rules and regulations for establishing criteria
for evaluating such proposals by business firms for approval or disapproval and for
establishing priorities for approval or disapproval of such proposals by business firms with
the assistance and approval of the secretary of the Department of Revenue. The total amount
of tax credit granted for programs approved by the commissioner of administration or his
successor for each fiscal year shall not exceed one percent of the total amount of state
corporation income tax as collected in the prior fiscal year.
C. The division of administration or its successor shall grant a tax credit against the
state corporation income tax as provided in this Section. A tax credit of up to fifty percent
of the actual amount contributed may be allowed for investment in programs approved by
the commissioner of administration or his successor. Such credit for any corporation shall
not exceed one hundred eighty thousand dollars annually. No tax credit shall be granted to
any bank, bank and trust company, insurance company, trust company, national bank, savings
association, or building and loan association for activities that are a part of its normal course
of business. Any tax credit not used in the period the investment was made may be carried
over for the next five succeeding taxable periods until the full credit has been allowed.
D. The decision of the commissioner of administration or his successor to approve
or disapprove a proposal pursuant to this Section shall be in writing, and if he approves the
proposal, he shall state the maximum credit allowable to the business firm. A copy of the
decision of the commissioner of administration or his successor shall be transmitted to the
governor and to the secretary of the Department of Revenue.
NOTE: See Acts 2015, No. 125, §7, regarding applicability.
NOTE: See Acts 2016, 1 st Ex. Sess., No. 29, §2, regarding effectiveness.

Legislative History

Acts 1986, 1st Ex. Sess., No. 16, §1, eff. Dec. 24, 1986; Acts 1988, No. 625, §4; Acts 1997, No. 658, §2; Acts 2015, No. 125, §2, eff. July 1, 2015; §5, eff. July 1, 2018; Acts 2017, No. 400, §4, eff. June 26, 2017.