Senate Bill No. 186, introduced by Senator Reese, amends the Louisiana New Markets Jobs Act premium tax credit provisions. The bill modifies the definition of "applicable percentage," changing it from 15% for the fourth through sixth credit allowance dates and 10% for the seventh credit allowance to 15% for the third through fifth credit allowance dates and 10% for the sixth credit allowance for qualified equity investments issued on or after August 1, 2020. Additionally, the definition of "qualified equity investment" is updated to require that at least 100% of the cash purchase price be used for qualified low-income community investments in active low-income community businesses in Louisiana by the first anniversary of the initial credit allowance date for investments issued prior to August 1, 2020, and after August 1, 2025, as well as within nine months for investments issued on or after August 1, 2020, and before August 1, 2023.

The changes aim to clarify the eligibility criteria and timelines for the New Markets tax credit, which incentivizes private capital investment in low-income communities. The bill is set to take effect on August 1, 2025, and seeks to enhance the effectiveness of the tax credit in supporting community development initiatives in Louisiana.

Statutes affected:
SB186 Original: 47:1(B)(1)