Current through Register Vol. 50, No. 9, September 20, 2024
A. Definitions
Department- the Department of
Revenue.
Employer- an entity authorized to do
business in the state of Louisiana that employs one or more individuals
performing services on its behalf.
Instructor- an individual qualified, as
determined by the training institution, to provide educational or instructional
services designed to furnish technical knowledge to persons enrolled in a
training program when the instructor's time or salary are donated by an
employer.
a. The donation of an
instructor's time is when the instructor, while on the payroll of the donating
employer, is allowed to spend a portion or all of a work day providing
instructional services either on the premises of the training institution or on
the employer's premises, when approved by the training institution as part of
the training curriculum.
b. The
donation of an instructor's salary is when the funds for the salary of an
instructor, who is an employee and on the payroll of the training institution,
are provided by the donating employer.
Latest Technology Available in Materials and
Equipment-machinery and equipment that:
a. has never been used except for normal
testing by the manufacturer to ensure that the machinery or equipment is of
proper quality and in good working order;
b. has been used by the retailer or
wholesaler solely for the purpose of demonstrating the product to customers for
sale;
c. is of the type currently
manufactured for sale to customers; or
d. has been used by the donating employer for
three years or less and was still used in production immediately prior to
donation.
Training Institution- a public training
provider, secondary or postsecondary vocational technical school,
apprenticeship program registered with the Louisiana Department of Labor, or
community college. The term does not include institutions or other entities
organized for profit.
Value- the donor's actual cost for new
machinery or equipment or the appraised worth of used materials and equipment
and instructional services.
B. Tax
Credit
1. A credit shall be allowed against
the individual and corporate income tax and the corporate franchise tax for the
donation of the latest technology available in materials and equipment and the
donation of instructors made to public training providers, secondary and
postsecondary vocational-technical schools, apprenticeship programs registered
with the Louisiana Department of Labor, or community colleges within the
state.
2. The tax credit shall be
an amount equal to one-half the value of the donated materials, equipment, or
services rendered by the instructor at the time of donation.
a. When used materials or equipment or
instructional services are donated, the institution accepting the donation
shall obtain an appraisal to establish the value of the materials, equipment,
or instructional services, which is to be provided to the donating
employer.
b. When new materials or
equipment are donated, the donating employer shall submit an invoice showing
the actual price paid, which shall be considered the value of the donated
property.
3. A donation
shall not qualify for the tax credit unless it is accepted by the training
institution.
a. The training institution
accepting the donation shall furnish to the donating employer certification of
the donation that includes the date of the donation and the value of the
donated materials, equipment, or instructional services.
b. The donating employer shall attach this
certification to the income or franchise tax return filed with the department
for the year in which the credit is claimed.
4. The tax credit shall be a credit against
the applicable tax or taxes for the tax period that the donation was made and
when combined with all other applicable tax credits, shall not exceed 20
percent of the employer's tax liability for any taxable year. The tax credits
may only be taken by the donating employer entity and may not be passed through
to partners or shareholders when the donating entity is a partnership,
Subchapter S Corporation, or Limited Liability Company.
C. Maintenance or Service Agreement. If
requested by the training institution receiving the donation, any employer
donating material or equipment may agree to provide a minimum of three months
maintenance or service to the institution in order to receive the tax credit.
This agreement shall cover the cost of any maintenance required on the donated
materials or equipment for the term of the agreement.
D. Orientation Agreement. Any employer
donating materials or equipment to an eligible training institution shall agree
to provide the training institution with materials or equipment operating
instructions at no cost to the institution at a location specified in the
agreement. Orientation instruction shall take place within two weeks after
installation of the donated materials and equipment.
E. Eligible Donations. The tax credit shall
be applicable to donations made after July 1, 1998 and before January 1,
2001.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
47:6012.
