SB 186: TAX/TAXATION: Provides relative to the New Markets tax credit. (gov sig) (EN -$22,500,000 GF RV See Note) - Louisiana

SB186 Original → SB186 Act 441 · 5 edits

MODERATE

This bill updates the Louisiana New Markets Jobs Act to modernize eligibility criteria and funding limits for tax credits. It redefines 'qualified active low-income community businesses' to require specific industry sectors and employee counts, and it adjusts the dollar limits for 'qualified low-income community investments' based on when the equity investment was issued. Additionally, the bill introduces new application requirements, including mandatory deposits and certifications regarding prior tax credit authority.

Scope change

The bill expands the scope of eligible businesses by adding specific industry codes and employee thresholds, while simultaneously tightening the financial requirements for qualifying investments based on issuance dates.

DEFINITION

Added a new definition for 'qualified active low-income community business' requiring the business to operate in specific sectors (e.g., manufacturing, agriculture) and meet minimum employee count thresholds relative to its industry.

FISCAL

Adjusted the maximum dollar limit for 'qualified low-income community investments' from a single fixed amount to a tiered system based on the issuance date of the equity investment, with higher caps for investments made after August 1, 2025.

REQUIREMENT

Established new application requirements, including a mandatory performance deposit and specific certifications regarding the status of prior tax credit authority.

TIMELINE

Updated the timeline for making qualified investments, creating distinct deadlines for investments issued before August 1, 2020, between 2020 and 2025, and on or after August 1, 2025.

ENFORCEMENT

Added provisions for the denial of applications under specific circumstances, including a 15-day window for applicants to correct deficiencies before the application is permanently denied.

SB186 Enrolled → SB186 Original · 4 edits

MODERATE

The bill was revised to update the timeline for the New Markets Jobs Act tax credit, shifting the eligibility window for certain investments from 2023 to 2025. It also adjusted the percentage of tax credits available based on when investments are made and corrected the definition of a 'qualified active low-income community business' to align with current federal standards.

Scope change

The bill's scope remains focused on the New Markets Jobs Act premium tax credit, but the specific dates governing when investments qualify for credits have been extended.

TIMELINE

The deadline for making qualified equity investments to count toward the tax credit was changed from August 1, 2023, to August 1, 2025, for investments issued after August 1, 2020.

DEFINITION

The definition of 'qualified active low-income community business' was updated to reference current Internal Revenue Code and federal regulations instead of the older statutory language.

ELIGIBILITY

The applicable percentage for the tax credit was adjusted, changing the credit allowance dates from the fourth through sixth to the third through fifth, and the seventh to the sixth.

TECHNICAL

Formatting and structural elements, such as the bill title and header information, were updated to reflect the 'Original' version rather than the 'Enrolled' version.

SB186 Reengrossed → SB186 Enrolled · 6 edits · Jun 20, 2025

MODERATE

The bill was finalized and enrolled, adding Representative Jackson as a co-sponsor. Substantive policy changes include clarifying the definition of a 'qualified active low-income community business' to require engagement in specific industries and employee thresholds. The bill also updated the caps on qualified equity investments based on issuance dates and added strict requirements for applications, including a 15-day window for applicants to provide missing information or face denial and refund of deposits.

Scope change

The bill's scope remains focused on the New Markets tax credit, but the specific eligibility criteria for businesses and the administrative process for applications have been refined.

SPONSORSHIP

Added Representative Jackson as a co-sponsor alongside Senator Reese.

DEFINITION

Clarified that a 'qualified active low-income community business' must be engaged in specific industries assigned primary NAICS codes within sectors 11, 21, 23, 31, 32, 33, 42, 48, 49, 54, 56, 62, 72, or 81.

ELIGIBILITY

Confirmed that the business must have total employees not exceeding the greater of 250 or the number set forth for its specific NAICS code sector in 13 CFR 121.201.

FISCAL

Maintained the investment caps of $10 million for investments prior to August 1, 2020, $5 million for investments between August 1, 2020, and August 1, 2025, and $10 million for investments on or after August 1, 2025.

REQUIREMENT

Added a requirement that if an application is denied, the applicant has fifteen days to provide additional information; failure to do so results in permanent denial and a refund of the performance deposit.

ENFORCEMENT

Mandated that the department must deny all applications that fail to satisfy the prior certification requirements found in Subparagraph (1)(g).

SB186 Engrossed → SB186 Reengrossed · 5 edits · Jun 9, 2025

MODERATE

This bill was reengrossed to add new statutory subsections (J)(4) and (5) and modify existing definitions regarding the New Markets Jobs Act. The changes clarify the definition of 'qualified low-income community investment' and establish specific dollar caps for investments based on when they were issued. Additionally, the bill updates the application requirements for community development entities to include new certification attestations and clarifies the conditions under which applications will be denied.

Scope change

The bill's scope was expanded by adding new subsections (J)(4) and (5) to the statute, which introduce new definitions and investment limits that were not present in the previous version.

DEFINITION

Added a specific definition for 'qualified low-income community investment' to clarify that it includes capital, equity, or loans to qualified businesses.

FISCAL

Established tiered dollar limits for qualified investments: $10 million for investments before August 1, 2020; $5 million for investments between August 1, 2020, and August 1, 2025; and $10 million for investments on or after August 1, 2025.

REQUIREMENT

Added new application requirements requiring applicants to submit certificates attesting to the status of their allocation agreements and confirming they have not been subject to deposit forfeiture.

Clarified that investment caps apply on a per-application round basis rather than per business, and specified that returned funds can be reinvested without counting against the limit.

ENFORCEMENT

Strengthened enforcement by explicitly stating that the department must deny any application that fails to satisfy the new certification requirements regarding allocation agreements.

TAX/TAXATION: Provides relative to the New Markets tax credit. (gov sig) (EN -$22,500,000 GF RV See Note)

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