§6026. Cane River heritage tax credit
A. The unique, nationally significant cultural, historic, natural, and scenic resources
of the Cane River Heritage Area should be utilized in a sustainable manner to their maximum
potential in order to improve the quality of life of the inhabitants of the region. Many of the
tax incentive and capital access programs administered by the Department of Economic
Development do not target heritage-based businesses located in the trace area. The primary
purpose of this Section is to assist individuals and businesses engaged in heritage-based
commercial activities in obtaining capital and tax incentives.
B. For the purposes of this Section, the following terms shall have the meanings
ascribed to them unless the context clearly indicates otherwise:
(1) "Cultural heritage" means those qualities that capture the traditions, customs,
beliefs, history, folklore, lifeways, and material culture of the Cane River Heritage Area.
(2) "Department" means the Department of Culture, Recreation and Tourism.
(3) "Development zone" means the Cane River Heritage Area Development Zone.
(4) "Heritage-based cottage industry" means a small business with no more than
twenty full- or part-time employees or an individual who is sustainably harnessing the Cane
River Heritage Area's cultural heritage and natural heritage resources for purposes which
include interpreting, accessing, developing, promoting, or reinforcing the unique character
and characteristics of the heritage area. "Heritage-based cottage industries" shall include
lodging, including bed and breakfasts, camping, houseboats, and recreational vehicle
facilities; museums, including living museums and interpretive facilities; artists and
craftsmakers of authentic or locally made products; authentic food packaging, production,
and harvesting; music production and instrument making; historic homes, house museums,
and historic sites; boat, canoe, kayak, and bicycle rentals; wild and scenic sites; hunting,
fishing, and birding guide services; tour planning and cultural guide services; swamp tours,
airboat tours, helicopter tours, plane tours, and balloon tours; retail facilities of authentic
products; and agricultural tours. "Heritage-based cottage industry" shall not include hotels,
motels, restaurants, gaming facilities, churches, and housing. In order to qualify as a
heritage-based cottage industry, for purposes of this Section, the owner of the business must
be a resident of the heritage area development zone.
(5) "Natural heritage" means one of those qualities that capture the environmental
features of the Cane River Heritage Area, including man-made and natural resources and
wildlife.
(6) "Small business" means a business with no more than twenty full- or part-time
employees.
C.(1) There shall be allowed a credit against any Louisiana income or corporation
franchise taxes for a heritage-based cottage industry located or to be located in the
development zone. The Department of Culture, Recreation and Tourism may enter into
contracts for periods not exceeding five years with a heritage-based cottage industry in order
to facilitate the tax credits authorized by this Section. No contract shall be granted for any
exemptions or credits which are not directly related to the concern located within the
development zone, and no tax exemption or credit shall be granted for any tax or portion of
a tax applicable to operations or activities of a concern located outside of the development
zone.
(2) Applications for contracts of exemption or credit shall be submitted to the
department. The department shall evaluate applications to determine whether the
requirements for a contract have been satisfied. The Department of Revenue shall aid the
department in determining whether the tax information furnished by the applicant is true and
correct. The Louisiana Workforce Commission shall aid the department in verifying
employment data.
D.(1) Whenever the secretary of the department finds that a concern satisfies the
requirements of this Section, he shall certify the application.
(2) The tax credit authorized by the provisions of this Section shall be for an amount
of up to one thousand eighty dollars, which may be used against the tax liability for state
income and corporation franchise taxes related to the operations of the cottage industry
within the development zone.
(3) In addition, the department may also enter into contracts with eligible cottage
industries for a one thousand eighty dollar tax credit per new employee hired during the
taxable year for which the credit is claimed. In order to qualify for this credit, the applicant
must have net new hires of one full-time employee or two part-time employees. A full-time
employee is a person employed for at least thirty-two hours per week. A part-time employee
is a person employed for at least twenty hours per week but less than thirty-two hours a week.
In order to qualify as a new hire for purposes of this credit, the employee must have been a
resident of the heritage area development zone for at least thirty days prior to employment.
The credit may be applied to any state income tax liability or any state corporate franchise
tax liability, but shall not be applied to any liabilities for penalty or interest due or
outstanding at the time the credit is generated. This credit shall be applicable only to a
position that did not previously exist in the business and that is filled by a resident of the
development zone who is performing duties in connection with the operation of the business
as a regular, full-time employee.
(4) Taxpayers who are awarded credits pursuant to the provisions of this Section in
excess of their income and corporation franchise tax liability may carry forward their unused
credits for no more than ten years from the date the credit was originally awarded.
(5)(a) All entities taxed as corporations for Louisiana income or corporation
franchise tax purposes shall claim any credit allowed under this Section on their corporation
income and corporation franchise tax return.
(b) Individuals shall claim any credit allowed under this Section on their individual
income tax return.
(c) Estates or trusts shall claim any credit allowed under this Section on their
fiduciary income tax returns.
(d) Entities not taxed as corporations shall claim any credit allowed under this
Section on the returns of the partners or members as follows:
(i) Corporate partners or members shall claim their share of the credit on their
corporation income or corporation franchise tax returns.
(ii) Individual partners or members shall claim their share of the credit on their
individual income tax returns.
(iii) Partners or members that are estates or trusts shall claim their share of the credit
on their fiduciary income tax returns.
E.(1) On and after January 1, 2018, no new applications to receive tax exemptions
or credits pursuant to this Section shall be approved by the department. However, a business
which, prior to January 1, 2018, has been approved by the department to receive tax
exemptions or credits under this Section shall continue to receive such tax benefits pursuant
to the terms of its agreement with the state of Louisiana as long as the business retains its
eligibility.
(2) The department shall periodically monitor the implementation and operation of
the provisions of this Section. Prior to the cessation of activities as provided for in Paragraph
(1) of this Subsection, the department shall provide written evaluation of the program and
its economic impact on the development zone to the House Committee on Ways and Means
and the Senate Committee on Revenue and Fiscal Affairs. The written evaluation shall be
utilized by the legislature to determine whether to continue the effectiveness of this Section
and whether to create similar development zones in other heritage areas in the state.
F. The department shall promulgate rules and regulations as are necessary, in
accordance with the Administrative Procedure Act, to implement the provisions of this
Section.
G. Commencing no later than January 31, 2016, the House Committee on Ways and
Means and the Senate Committee on Revenue and Fiscal Affairs shall review the credit
authorized pursuant to the provisions of this Section to determine if the economic benefit
provided by such credit outweighs the loss of revenue realized by the state as a result of
awarding such credit. The House and Senate committees shall make a specific
recommendation no later than March 1, 2017, to either continue the credit or to terminate the
credit.
Acts 2007, No. 299, §2; Acts 2008, No. 743, §7, eff. July 1, 2008; Acts 2011, No. 56,
§1; Acts 2013, No. 304, §1; Acts 2015, No. 125, §2, eff. July 1, 2015; Acts 2015, No. 357,
§1, eff. June 29, 2015; Acts 2016, 1st Ex. Sess., No. 29, §2; Acts 2017, No. 400, §1 and 4,
eff. June 26, 2017.
NOTE: See Acts 2015, No. 125, §7, regarding applicability.
NOTE: See Acts 2016, 1st Ex. Sess., No. 29, §2, regarding effectiveness.