Current through Register Vol. 50, No. 9, September 20, 2024
A. This Section is applicable to all persons
or persons employed by or representing an entity engaged in the sale or
brokerage of motion picture investor tax credits which are granted, issued or
authorized by the state pursuant to
R.S.
47:6007. Every person who meets any of the
below-provided requirements shall be subject to the requirements of
R.S.
47:6007(C)(7).
B. Definitions
Actively Participate-any person or person
employed by or representing an entity in a sale/brokerage of motion picture tax
credits when the person:
a. holds
himself/herself out to be engaged in the business of selling or brokering
motion picture investor tax credits either on their own behalf or on behalf of
the entity; or
b. has a history of
frequent, regular, and repeated sales of motion picture investor tax credits
either on their own behalf or on behalf of the entity; or
c. did not purchase the credits at issue for
his/her/its own personal use. Any person failing to meet any of the
above-mentioned criteria shall be presumed a non-seller or non-broker and thus
not subject to the requirements of
R.S.
47:6007(C)(7).
Broker-any person or person employed by or
representing an entity which facilitates the sale of a tax credit issued
pursuant to
R.S.
47:6007 between a transferor and a transferee
in exchange for consideration. However, the term "broker" shall be limited to
and include only those persons who actively participate, as defined herein, in
the marketing or sale of motion picture investor tax credits and shall not
include:
a. the entity which earns the
motion picture investor credit pursuant to
R.S.
47:6007, its affiliates or taxpayer members
who receive tax credits via allocation, as verified by department Form R-6135
and R-6140; or
b. a tax return
preparer or an employee of a partner affiliated with the tax return preparer,
who facilitates the sale of tax credits for the benefit of his or her
client.
Department-Louisiana Department of
Revenue
Secretary-the secretary of the Department of
Revenue.
Seller-any person or person employed by or
representing an entity which transfers title or ownership of a tax credit
issued pursuant to
R.S.
47:6007 to a transferor in exchange for
consideration. The term "seller" shall be limited to those persons who actively
participate, as defined herein, in the marketing, sale, or acquisition for
resale of motion picture investor tax credits and shall not include the entity
which earns the motion picture investor credit pursuant to
R.S.
47:6007, its affiliates or taxpayer members
who receive tax credits via allocation, as verified by department Form R-6135
and R-6140.
Tax Return Preparer-any person who prepares
for compensation, or who employs one or more persons to prepare for
compensation, all or a substantial portion of any return of tax or any claim
for refund of tax under the Internal Revenue Code or the
Louisiana Revised Statutes.
C. Initial Registration. Beginning January 1,
2016, all sellers or brokers of motion picture investor tax credits shall apply
for the registry and be deemed qualified after meeting the requirements of
R.S.
47:6007(C)(aa)-(cc) and
undergoing a criminal history background examination by the Louisiana Bureau of
Criminal Identification and Information as provided for in
R.S.
15:587(A)(1)(h) at the
expense of the applicant. Applicants for the registry shall follow the
procedure for registration as provided below in Subsection D. However, no
seller or broker shall be prevented from transferring motion picture investor
tax credits until the effective date of this regulation.
1. Any person deemed qualified to sell or
broker motion picture investor tax credit shall be included in the public
registry of motion picture investor tax credit brokers, which shall be
maintained by the department and made available on its website,
www.revenue.la.gov/brokerregistry.
2. No person may sell or broker motion
picture investor tax credits on or after the effective date of this regulation
without first qualifying for and being included on the public registry of
motion picture investor tax credit brokers. All transfers made on or after the
effective date of this regulation by a person subject to the requirements of
R.S.
47:6007(C)(7) who is not
listed on the public registry of motion picture investor tax credits shall be
inoperable and of no legal effect and any such transfers shall be deemed
ineligible for registration in the Louisiana tax credit registry established
pursuant to
R.S.
47:1524. Further, failure to so qualify and
register with the department prior to selling or brokering tax credits issued
pursuant to
R.S.
47:6007 shall be punishable by a fine of not
more than ten thousand dollars or imprisonment at hard labor for not more than
five years, or both. In addition to the foregoing penalties, a person convicted
under the provisions of
R.S.
47:6007(C)(7) shall be
ordered to make full restitution to any person who has suffered a financial
loss as a result of this offense. If a person ordered to make restitution is
found to be indigent and therefore unable to make restitution in full at the
time of conviction, the court shall order a periodic payment plan consistent
with the persons ability to pay.
3.
Any person who is determined to no longer be in compliance with the
requirements of
R.S.
47:6007(C)(7) and LAC
61:III.2701.C after initial qualification may be removed from the public
registry of motion picture investor tax credit brokers and prohibited from
thereafter engaging in the transfer, sale or brokerage of motion picture
investor tax credits.
D.
Procedure for Registration. Applicants seeking to register with the public
registry of motion picture tax credit brokers must follow the below procedures.
1. Submit a completed Form R-6130, Public
Registry of Motion Picture Tax Credit Brokers, from the LDR website via either
e-mail to TaxCredit.Registry@la.gov or mail to:
Louisiana Department of Revenue
Attn: Tax Credit Registry
P.O. Box 1071
Baton Rouge, LA 70821
2. Upon receipt of a completed Form R-6130,
the LDR will send the applicant an LDR completed Louisiana State Police (LSP)
authorization form and rap disclosure form to the applicant provided e-mail or
address. The bottom portion of both forms should be completed and signed by the
applicant. Both forms and payment must be presented to LSP when requesting a
background check in person or via mail.
3. Applicants seeking registration have two
options for obtaining the required fingerprint-based background check. They are
as follows:
a. electronically submit
fingerprints at the Louisiana State Police Headquarters facility located at
7919 Independence Boulevard, Baton Rouge, LA 70806. Applicants must present the
following for completion of the background check:
i. payment of all applicable fees, including
fingerprint fee and processing fee, via credit card, business check, cashiers
check, or money order. Contact the LSP for details;
ii. a completed LSP authorization
form;
iii. a completed LSP rap
disclosure form;
NOTE: A response from the LSP is typically generated in 3-5
business days. Upon receipt of this information, a final determination from the
LDR is typically generated in an additional 3-5 business days.
b. obtain fingerprint
cards from one of the listed law enforcement locations
http://www.myfbireport.com/locations/lawEnforcement/LA.php
and mail the request for background check with all completed documents and fees
to the below address:
Louisiana State Police
Criminal Records
P.O. Box 66614
Baton Rouge, LA 70896
c. the request must contain the following
items:
i. two sets of original fingerprints
with all required information fields completed on the card;
ii. payment of all applicable fees, including
fingerprint fee and processing fee, via credit card, business check, cashiers
check, or money order. Contact the LSP for details;
iii. a completed LSP authorization
form;
iv. a completed LSP rap
disclosure form.
NOTE: A response from the LSP is typically generated in 15-21
business days from the date payment is entered into the LSP receipt system.
Upon receipt of this information, a final determination from the LDR is
typically generated in an additional 3-5 business days.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
15:587(1)(h),
R.S.
47:6007 and
R.S.
47:1511.
