La. Revenue and Taxation § 47:6036.1

Current with changes from the 2024 Legislative Session

Section 47:6036.1 - Louisiana Import Tax Credit

A. Purpose. The primary purpose of this Section is to encourage the utilization of Louisiana public port facilities for cargo imports and the development of new port infrastructure facilities for the manufacturing, distribution, and warehousing of imported goods. This Section presents a streamlined and efficient method for applying for and utilizing tax credits for imports that places Louisiana ports in an equal position with competing states' ports that have very simple programs in place to incentivize cargo growth.

B. Definitions. For purposes of this Section, the following words and phrases shall have the following meanings unless the context clearly indicates otherwise:

(1) "Actual cargo volume" shall mean the total amount of imported cargo received (in TEUs) by a port facility user within its port credit incentive period.

(2) "Base cargo volume" shall mean the average amount of imported cargo received (in TEUs) by a port facility user in the three years preceding an application for port credits. Only cargo that is owned by a port facility user at the time the port facility is used may be included in the calculation of base cargo volume.

(3) "Base cargo volume period" shall mean the three hundred sixty-five day period ending on the last day of the month immediately preceding the month in which an application for port credits is postmarked, provided that project agreements awarding port credits may specify a different base cargo volume period.

(4) "Port credit" shall mean a one-time tax credit of up to fifty dollars per TEU of cargo imported through a Louisiana public port, or up to one hundred dollars per TEU of cargo imported through a Louisiana public port if entering into a project agreement with the state, that may be applied against Louisiana income tax liability, as set forth in Subsection G of this Section.

(5) "Port credit incentive period" shall mean the three hundred sixty-five day period designated by an applicant on its application as the twelve month period in which it is eligible to earn port credits as approved by the Department of Economic Development, provided that the port credit incentive period shall begin no earlier than the first day of the month immediately following the date of the application and shall begin no later than ninety days following the date of the application. Project agreements awarding port credits may specify a port credit incentive period beginning on any date.

(6) "Port facility user" shall mean any person engaged in the manufacturing, warehousing, or distribution of goods imported through a public port of the state.

(7) "Public port" shall mean any deep-water port commission or port, harbor, and terminal district as defined in Article VI, Section 44 of the Constitution of Louisiana, and any other port, harbor, and terminal district established under Title 34 of the Louisiana Revised Statutes of 1950.

(8) "TEU" shall mean twenty-foot equivalent unit, that is a standard measurement in shipping volumes in units of twenty-foot long containers.

C. Eligibility for port credits.

(1) In order to become eligible for an award of port credits, an applicant shall meet all of the following criteria:

(a) The applicant shall be a port facility user that imports more than fifty TEUs of cargo through Louisiana public ports.

(b) The applicant shall file an application for port credits with the Department of Economic Development as set forth in Subsection D of this Section.

(c) The applicant shall increase its imported cargo volumes by at least one hundred five percent during its port credit incentive period as compared to imported cargo volumes during its base cargo volume period.

(2) A recipient of port credits granted pursuant to this Section shall not be eligible for import-export cargo tax credits pursuant to R.S. 47:6036(I) nor shall a recipient of port credits be eligible to receive any other state tax credit, exemption, exclusion, deduction, rebate, or any other tax benefit for which the taxpayer has received a port credit pursuant to this Section. A recipient of import-export cargo tax credits as provided in R.S. 47:6036(I) shall not be eligible for port credits pursuant to this Section.

(3) The following two types of credits against state income tax are hereby authorized under this Section:

(a) Tax credits based upon cargo volumes.

(b) Tax credits based upon project agreement with the Department of Economic Development.

D. Application for and allocation of port credits based on cargo volumes.

(1) Application for port credits. Port facility users seeking to obtain port credits shall file an application on a form prescribed by the Department of Economic Development. Applications shall be accepted on or after September 1, 2021, until port credits are no longer available.

(2) Allocation of port credits.

(a) Eligible applicants may be awarded port credits of up to fifty dollars per net new TEU of actual cargo volumes imported through a public port of the state during its port credit incentive period in excess of the applicant's base cargo volume of cargo imports through the applicable public port for the applicant's base cargo volume period.

(b) Port credit allocations are conditional and may be awarded based on procedures adopted by the Department of Economic Development by rule.

(c) Port credits are earned based upon actual cargo volumes transiting the applicable public port during the port credit incentive period and the certification of actual cargo volumes as set forth in Subsection E of this Section.

(d) A port facility user that is awarded port credits pursuant to this Section shall not be entitled to claim more port credits than are approved by the Department of Economic Development for that particular port facility user.

E. Certification of cargo volumes.

(1) Certification of base cargo volumes. Calculation of base cargo volumes shall be supported by records from the applicable public port facility confirming the total amount of imported cargo volumes in TEUs for the applicant during the three-year period immediately preceding the port facility user's application. If the applicant is a new port facility user, the applicant shall propose a base cargo volume, subject to approval by the Department of Economic Development.

(2) Certification of actual cargo volumes. Within ninety days of the end of the port credit incentive period, the port facility user shall file a certification of cargo volume on a form prescribed by the Department of Economic Development. Certifications postmarked after this date shall not be accepted unless the port facility user receives approval for late submission from the Department of Economic Development prior to the deadline. Calculations of actual cargo volume shall be supported by records from the applicable public port facility confirming the total amount of cargo volume for the applicable base port credit incentive period. Only cargo that is owned by the port facility user at the time the public port facility is used shall be included in the calculation of actual cargo volume.

F. Award of port credits by project agreement.

(1) Port credits may be allocated by the governor and awarded by the Department of Economic Development pursuant to a project agreement between the state and a port facility user. A port facility user may be awarded port credits by entering into a project agreement with the Department of Economic Development in an amount of up to one hundred dollars per TEU imported through public ports of the state during a three-year period, as defined in the project agreement, subject to the following:

(a) A port facility user seeking an award of port credits by project agreement shall file an application with the Department of Economic Development on a form prescribed by the Department of Economic Development for project agreement port credits before commencement of the project.

(b) The Department of Economic Development may approve an award of port credits based on the net new TEUs of actual cargo volume imported by a port facility user according to the terms set forth in an executed project agreement.

(2) Notwithstanding approval by the Department of Economic Development, a port facility user shall become eligible to earn port credits under this Subsection only upon execution of a project agreement between the state and the port facility user.

(3) A port facility user that is awarded port credits by project agreement shall not be entitled to claim more port credits than are approved by the Department of Economic Development for that port facility user.

(4) After the approval of port credits, the Department of Economic Development shall provide to the Department of Revenue the name and tax identification number of the applicant who is approved for port credits, the total amount of credits approved for the applicant, and any other information required by the Department of Revenue.

G. Utilization of port credits.

(1) Port credits may be applied against an approved company's Louisiana income tax liability for the tax year containing the last day of the port credit incentive period.

(2) Port credits are not refundable or transferable, but any unused credit may be carried forward for up to five years.

H. Credit cap. The Louisiana Import Tax Credits awarded by the department to any recipient pursuant to this Section shall be subject to the program limitation of four million five hundred thousand dollars per fiscal year as provided for pursuant to R.S. 47:6036(I)(2)(a)(i).

I. Recovery of credits. Credits previously granted to a taxpayer, but later disallowed, may be recovered by the Department of Revenue through any collection remedy authorized by R.S. 47:1561.3.

J. Rules. The Department of Economic Development may promulgate rules and regulations in accordance with the Administrative Procedure Act to implement the provisions of this Section subject to oversight by the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs.

K. Termination of the credit. No credits shall be awarded pursuant to this Section for applications received after July 1, 2025.

La. Revenue and Taxation § 47:6036.1

Acts 2021, No. 292, §1, eff. June 14, 2021.

Added by Acts 2021, No. 292,s. 1, eff. 6/14/2021.