§34. Corporation tax credit

A. The intent of this Section is solely to reward the generation of new full-time and part-time jobs in the state of Louisiana. Any taxpayer who shall establish or expand a business enterprise in the state of Louisiana shall be allowed a credit against the tax liability due under the corporate income tax as determined pursuant to Subsection B of this Section.

B.(1) The credit shall be a portion of the state corporate income tax, but not in excess of thirty-six percent of such tax. Such portion shall be an amount determined by multiplying the number of new employees, as defined in Subsection C of this Section, by the following amounts:

(a) seventy-two dollars per eligible new employee per taxable year.

(b) one hundred forty-four dollars per eligible new economically disadvantaged employee per taxable year.

(c) one hundred sixty-two dollars per new employee who is a resident of a neighborhood with an unemployment rate of ten percent or more per taxable year.

(2) Only one of the above credits shall be permitted for any one individual employee.

(3)(a) The amount of the credit allowed under Paragraph (B)(1) of this Section for the taxable year shall be an amount equal to the sum of

(i) a carry-over of prior unused credits arising from taxable years beginning on or after January 1, 1980, carried to such taxable year, plus

(ii) the amount of the credit determined under Subsection A of this Section for the taxable year.

(b) If the sum of the amount of credits as determined under the provisions of Items (B)(3)(a)(i) and (ii) of this Section for the current taxable year exceed the limitation imposed by Paragraph (B)(1) of this Section, the excess shall be treated as a carry-over credit and may be carried over for a maximum of five consecutive years following the taxable year in which the credit originated. Such carry-over credits are to be applied in reduction of the tax in the order of the taxable years in which the credits originated, beginning with the credit for the earliest taxable year.

C. Eligible employees are defined as follows:

(1) A "new employee" shall be a person residing and domiciled in this state, hired by the taxpayer to fill a position for a job in this state which previously did not exist in the business enterprise during the taxable year for which the credit allowed by this Section is claimed. In no case shall the new employees allowed for purpose of the credit exceed the total increase in employment. A person shall be deemed to be so engaged if such person performs duties in connection with the operation of the business enterprise on:

(a) a regular, full-time basis;

(b) a part-time basis, provided such person is customarily performing such duties at least twenty hours per week for at least six months during the taxable year.

(2) A "new economically disadvantaged employee" is a new employee who is any of the following:

(a) a member of a family which receives public assistance; or

(b) a member of a family whose income during the previous six months on an annualized basis was such that:

(i) the family would have qualified for public assistance, if it had applied for such assistance; or

(ii) it does not exceed the poverty level; or

(iii) it does not exceed seventy percent of the lower living standard income level.

(c) a foster child on whose behalf state or local government payments are made; or

(d) where such status presents significant barriers to employment:

(i) a client of a sheltered workshop;

(ii) a person with a disability;

(iii) a person residing in an institution or facility providing twenty-four hour support such as a prison, a hospital or community care facility; or

(iv) a regular outpatient of a mental hospital rehabilitation facility or similar institution.

(3) A "new employee who is a resident of a neighborhood with an unemployment rate of ten percent or more" is a new employee whose neighborhood status shall be determined by rules and regulations promulgated by the Louisiana Workforce Commission. Any new employee, who is a resident of an enterprise zone established pursuant to the provisions of the Louisiana Enterprise Zone Act, shall be deemed to be a new employee who is a resident of a neighborhood with an unemployment rate of ten percent or more for purposes of this Section.

D. The tax credit allowed by this Section shall be in lieu of an alternative to the tax exemption allowed pursuant to Article VII, Section 21(F) of the Constitution of Louisiana, or any ad valorem property tax exemption available to business or industry and any tax exemption granted pursuant to the provisions of the Louisiana Enterprise Zone Act.

E. The secretary of the Department of Revenue shall promulgate such rules and regulations as may be deemed necessary to carry out the purposes of this law.

F. The credit provided for pursuant to the provisions of this Section shall terminate and shall have no effect beginning January 1, 2020.

Added by Acts 1978, No. 596, §1. Amended by Acts 1979, No. 183, §1; Acts 1980, No. 283, §1; Acts 1981, No. 698, §1; Acts 1982, No. 43, §1; Acts 1984, No. 909, §1; Acts 1992, No. 447, §4, eff. June 20, 1992; Acts 1997, No. 658, §2; Acts 2008, No. 743, §7, eff. July 1, 2008; Acts 2014, No. 811, §25, eff. June 23, 2014; Acts 2015, No. 125, §2, eff. July 1, 2015; Acts 2016, 1st Ex. Sess., No. 29, §2; Acts 2017, No. 400, §§1, 4, eff. June 26, 2017; Acts 2017, No. 403, §2, eff. June 26, 2017.