Louisiana Administrative Code
Title 61 - REVENUE AND TAXATION
Part I - Taxes Collected and Administered by the Secretary of Revenue
Chapter 19 - Miscellaneous Tax Exemptions, Credits and Deductions
Section I-1911 - Louisiana New Markets Tax Credit
Universal Citation: LA Admin Code I-1911
Current through Register Vol. 50, No. 9, September 20, 2024
A. Application Process for New Markets Tax Credits
1. A taxpayer may apply for Louisiana
new markets tax credits by submitting a new markets tax credit application to
the Special Programs Division of the Louisiana Department of Revenue. The form
R-10609 is available online on the department's website. Applications for new
markets tax credits will be processed in the order received.
2. If a taxpayer is entitled to the credit, a
new market tax credit summary sheet will be issued to the taxpayer. The summary
sheet will contain a tracking number.
3. The new market tax credit summary sheet
will also contain a transfer section that must be updated each time the
taxpayer transfers their credit. The taxpayer must send an updated new market
tax credit summary sheet to notify the department of revenue of the sale within
30 days of the sale.
4. The
taxpayer must attach the new market tax credit summary sheet to their income or
franchise tax return to claim the credit.
B. Applying the New Markets Tax Credit
1. New markets tax credits earned by a
taxpayer or received by a taxpayer by flow-through from a partnership or LLC
may be applied as detailed in Revenue Ruling 08-011-A and as explained below.
a. Credits may be applied to the tax year in
which the credit allowance date occurred.
b. Credits may not be applied to penalties
and interest.
c. Prior year returns
that include the credit allowance date may be amended to apply credits earned
that year.
d. Credits may be
applied against taxes paid in a prior year and the taxes paid may be refunded.
However, the new markets tax credit is nonrefundable and credits in excess of
the tax paid in a prior year can only be carried forward in accordance with
R.S.
47:6016(D).
e. Credits from qualified equity investments
made on or after April 1, 2008, cannot be claimed on any return or prior year
return that was due before December 31, 2008.
f. Credits from qualified equity investments
made on or after December 1, 2009 cannot be claimed on any return or prior year
return that was due before December 31, 2010.
2. New markets tax credits transferred by
sale to a taxpayer may be applied as detailed in Revenue Ruling 08-011-A and as
explained below.
a. Credits may be applied to
a prior year's outstanding tax liability, including penalties and interest, as
provided by
R.S.
47:1675(H)(1)(c).
b. A taxpayer that purchases the credits may
not amend their prior year returns to claim credits where no liability is
currently outstanding and therefore trigger a refund.
c. Credits purchased from qualified equity
investments made on or after April 1, 2008, cannot be claimed on any return or
prior year return that was due before December 31, 2008.
d. Credits purchased from qualified equity
investment made on or after December 1, 2009, cannot be claimed on any return
or prior year return that was due before December 31, 2010.
C. Limitations on the New Markets Tax Credit
1. New markets tax
credits earned from qualified equity investments issued prior to July 1, 2007,
are subject to an annual $5,000,000 cap applicable to all new markets tax
credits issued for that year by the department. Once the cap is reached, no
other credits will be granted for that year.
2. New markets tax credits from qualified
equity investments issued after July 1, 2007, but before April 1, 2008, are
subject to a $50,000,000 cap on the entire new markets credit
program.
3. New markets tax credits
from qualified equity investments issued after April 1, 2008, shall be allowed
as follows:
a. during the period beginning
April 1, 2008, and ending December 31, 2008, $25,000,000;
b. during the period beginning January 1,
2009, and ending November 30, 2009, $12,500,000 plus any unissued credits from
the prior period;
c. during the
period beginning December 1, 2009 and ending December 31, 2010, $12,500,000
plus any unissued credits from the prior periods; and
d. during periods beginning January 1, 2011
and after, credits shall be limited to only unused credits from prior
years.
D. Additional Requirements and Limitations for Credits
1. To be issued credits on qualified
low-income investments that exceed seven million five hundred thousand dollars,
the Department of Economic Development must certify that the qualified
low-income investment was made to a business in a targeted industry. Request
for new markets tax credits from qualified low-income investments exceeding
seven million five hundred thousand dollars will be accepted by the department
without certification from the Department of Economic Development if the
taxpayer asserts in their application that certification has been requested.
However, the new markets tax credit certification will not be issued to the
taxpayer until the department receives the certification from the Department of
Economic Development or the certification is not denied by the Department of
Economic Development with 60 days of the request, whichever occurs
first.
E. New Markets Tax Credits Transfer Process
1. Any new
markets tax credits not previously claimed by a taxpayer against their income
or franchise tax may be transferred or sold.
2. The original investor that is transferring
credits must send an updated new market tax credit summary sheet within 30 days
of the sale. The original investor should also include a new markets transfer
form R-10613 with closing documents to the transferee. The new markets transfer
form is available from the department's website.
3. The transferee must submit the new markets
transfer form with their income or franchise tax return to claim the
credits.
4. Any transferor, other
than the original investor, should use a new markets transfer form to transfer
credits to another Louisiana taxpayer and send a copy of the form to the
department within 30 days of the sale.
AUTHORITY NOTE: Promulgated in accordance with R.S.47:6016, R.S.47:287.785, and R.S.47:1511.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
