How did Louisiana's original 2008 Revenue Ruling 08-011 explain who could claim, allocate, sell, and calculate state New Markets Tax Credits?

Plain-English summary

The original 2008 version of Louisiana Revenue Ruling 08-011 answered 11 common questions about Louisiana New Markets Tax Credits. It explained how federal New Markets Tax Credit status affected state eligibility, who could claim credits, how LLC allocations and transfers worked, and how to calculate credits for investments made in different statutory periods.

This version is historical and superseded. The official PDF begins with a notice that a revised version was published October 8, 2009. It says PLRs issued after that date must use the revised version.

Federal qualification controlled state qualification

Louisiana's credit “piggybacked” on the federal New Markets Tax Credit. Under the ruling's reading of La. R.S. 47:6016(B)(4), an investment had to be designated and eligible as a qualified equity investment, or QEI, under 26 U.S.C. section 45D for the same amount before it qualified for Louisiana purposes.

Likewise, the federal meanings of qualified equity investment, qualified low-income community investment, qualified low-income community business, and qualified business carried into the state program.

Who could claim and allocate the credits

The person holding a QEI on a credit allowance date could claim the state credit as it became available.

For an LLC, Louisiana followed the entity's federal tax classification. A federally taxed corporation was treated as a corporation; an LLC treated as a partnership passed income, loss, credits, and deductions through under its operating agreement or, without one, by distributive share. A federally disregarded single-member LLC was also disregarded for Louisiana purposes, so its sole member was treated as earning the credits.

The ruling said an operating agreement's special credit allocations would be respected. If membership changed, the owner on a credit allowance or anniversary date could claim a share, subject to any operating agreement then in effect—including an agreement directing credits to original members who were no longer members.

Selling credits and transferring future rights

Under La. R.S. 47:6016(F), credits that had become available but had not been claimed could be sold to another Louisiana taxpayer under the statutory conditions.

The ruling distinguished those usable credits from credits tied to future allowance dates. A right to future credits could be transferred only by transferring an interest in the investor.

It also required the transferor to include New Markets Transfer Form R-10613 with closing documents, update the credit summary sheet, and send the update to the Department within 30 days; the transferee submitted the transfer form with its return. Those form instructions are historical and should be checked before use.

Sale proceeds from a member's interest did not have to be reinvested in the same investor because the ruling found no such requirement in La. R.S. 47:6016.

When credits were earned and used

The ruling said the right to the entire credit amount was earned on the initial investment date. Only the statutory percentage could be used or claimed on each defined credit allowance date.

Federal basis reduction did not directly reduce the availability of Louisiana's credit. But because Louisiana income began with federal income and expense items, a federal basis adjustment under Section 45D could still affect Louisiana taxable income through those federal items.

Investments made before July 2007

For pre-July 2007 QEIs, the ruling described seven allowance dates, with 1% available on the first three and 2% on the last four, subject to a stated $5 million annual Department limit.

The older adjusted-purchase-price formula used values from the “immediately preceding” allowance date. On the initial date that could require dividing zero by zero and produce no usable result. Invoking Louisiana Civil Code article 9 and the rule against absurd results, the Department said it would use the definition as amended by Act 379 of 2008 even for credits issued before July 1, 2007.

Investments from July 2007 through March 2008

For this period, the ruling described 10% of the QEI as available on each of the first two allowance dates and 5% on the third. It also described a $15 million maximum qualified low-income community investment for a single business.

The adjusted purchase price used a fraction comparing Louisiana investments with total investments. The ruling found it absurd to reduce the calculation for one Louisiana QEI merely because the same CDE later issued another QEI invested outside Louisiana.

Its solution was to count only the qualified low-income community investments made from the specific QEI for which Louisiana credits were sought. Later QEIs, inside or outside Louisiana, would not readjust that QEI's purchase price on subsequent allowance dates.

Investments made on or after April 1, 2008

The ruling described a $5 million QEI cap per project, equating to a $1.25 million state credit cap per project, and a $50 million aggregate lifetime program cap. Taxpayers seeking credits had to apply to the Department for an allocation.

For the initial allowance date, the formula used projected in-state and total investments from the application. If actual Louisiana investments did not match the projection by the first anniversary, the state could disallow or recapture part of the credit so the initial amount reflected actual investment.

What this means for you

New Markets Tax Credit investors and CDEs

This PDF is useful for understanding the Department's original framework, but its opening notice withdraws it as current guidance. Use the revised RR 08-011 and current law for any live transaction.

LLC members and credit buyers

The historical ruling distinguished an allocation under an operating agreement, sale of an already available credit, and transfer of a future credit right through ownership of the investor. Those categories should be rechecked under current documents and statutes.

Accountants and tax professionals

Do not lift the 2008 percentages, project caps, annual limits, form number, or adjusted-purchase-price solutions into a present return. The ruling itself directs later PLRs to the October 8, 2009 revision.

Common questions

Q: Is this the current RR 08-011?

A: No. The official PDF labels this version revised and superseded and identifies October 8, 2009 as the revised version's publication date.

Q: Did federal qualification matter?

A: Yes. The ruling treated federal Section 45D designation and eligibility as prerequisites to the corresponding Louisiana qualification.

Q: Could unused Louisiana credits be sold?

A: Under this historical ruling, credits already available but not claimed could be sold subject to statutory conditions. Future credit rights required transfer of an ownership interest in the investor.

Q: Did selling an LLC interest require reinvesting the proceeds?

A: No. The ruling found no reinvestment requirement in La. R.S. 47:6016.

Q: Can the calculations on this page be used now?

A: Not without checking the revised ruling and current law. This version's own notice says it was superseded.

Citations and references

• La. R.S. 47:6016 — Louisiana New Markets Tax Credit program
• La. R.S. 47:6016(B)(1)-(4) — adjusted purchase price, allowance percentages and dates, and federal definitions
• La. R.S. 47:6016(C) — holder's right to claim
• La. R.S. 47:6016(E) — allocation application and aggregate cap described in the ruling
• La. R.S. 47:6016(F) — sale of unused credits
• La. R.S. 47:204 — partnership flow-through items and allocations
• 26 U.S.C. section 45D — federal New Markets Tax Credit
• Treas. Reg. section 301.7701-3 — entity classification
• Louisiana Civil Code article 9; Richard v. Hall, 874 So. 2d 131 (La. 2004); SWAT 24 Shreveport Bossier, Inc. v. Bond, 808 So. 2d 294 (La. 2001) — absurd-results analysis
• Act 379 of the 2008 Regular Session — adjusted-purchase-price amendment applied by the ruling
• LAC 61:III.101(C) — Revenue Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA Revenue Ruling 08-011

Original ruling text

Historical Note: This revenue ruling has been revised and superseded. The current version of
the revenue ruling has a publication date of October 8, 2009. Private letter rulings that were
issued prior to October 8, 2009 may continue to rely on this version of this ruling. All private letter
rulings issued after October 8, 2009 must rely on the current version.

Revenue Ruling
No. 08-011
October 21, 2008
Corporation Income Tax, Corporation Franchise Tax, Individual Income Tax
Frequently Asked Questions Regarding Louisiana New Markets Tax Credits
The purpose of this ruling is to address common issues regarding Louisiana New Markets
Tax Credits. The issues and responses detailed below represent the department’s position
and should serve as guidance to taxpayers applying for and claiming Louisiana New
Markets Tax Credits.
The Louisiana New Markets Tax Credit is a credit for persons that have a qualified equity
investment in a qualified community development entity (CDE) on the credit allowance
date. Among the requirements for a qualified equity investment is that substantially all of
the cash must be used by the CDE to make qualified low-income community investments
in Louisiana.
1.

What qualifies as a “qualified equity investment” under La. R.S. 47:6016?

The Louisiana New Markets Tax Credit piggybacks the Federal New Markets Tax Credit
(Federal NMTC). Louisiana Revised Statute 47:6016(B)(4) provides that "[q]ualified
equity investment", "qualified low-income community investments", "qualified lowincome community business" and "qualified business" shall have the same meaning given
to them in Section 45D of the Internal Revenue Code…” and that “[n]o investment shall
be considered a "qualified equity investment" unless it has also been designated as a
"qualified equity investment" for the same amount and is eligible for tax credits
according to the provisions of Section 45D of the Internal Revenue Code.” Therefore,
Louisiana’s determination of a QEI and a “qualified low income community investment”
(QLICI) is dependent upon the federal determination and if an investment qualifies as a
QEI and QLICI for federal NMTC purposes; the investment qualifies as a QEI and a
QLICI under Louisiana law as well.
2.

Who is entitled to claim the State New Market Tax Credits (State NMTC)?

Louisiana Revised Statute 47:6016(C) states that any person who holds a QEI on a
certain date may claim the State NMTC. Thus, any person who holds a QEI will be
entitled to claim the credits as they become available for use on the initial investment
date and subsequent credit allowance dates.

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3.

How are the State NMTCs allocated among the members of an LLC?

An LLC is taxed and treated in the same manner for Louisiana income tax purposes as it
is taxed and treated for federal income tax purposes. If the LLC is taxed as a corporation
for federal income tax purposes the LLC will be taxed as a corporation for Louisiana
income tax purposes. If it is considered a partnership for federal income tax purposes (the
most common situation) then it is treated as a partnership for Louisiana income tax
purposes.
Furthermore, pursuant to La. R.S. 47:204, items of income, loss, credits and deductions
flows through to partners of a partnership as provided in the operating agreement. In the
absence of an operating agreement, items of income, loss, credits and deductions flow
through pursuant to the partner’s distributive share in the partnership. If the LLC’s
operating agreement provides for special allocations, they will be permitted for Louisiana
purposes.
If the LLC is a single member LLC it can elect to be classified as an association or to be
disregarded as an entity separate from its owner. Treas. Reg. § 301.7701-3. If the LLC
did not elect otherwise, it will be a disregarded entity for federal income tax purposes. If
the LLC is a disregarded entity for federal income tax purposes, it will be treated as a
disregarded entity for Louisiana income tax purposes as well. Credits earned by a
disregarded entity will be considered to be earned by the sole member, who will be
entitled to claim the credits as they become available for use on the initial investment
date and subsequent credit allowance dates.
4.
If new members are admitted to a LLC or if a current member’s interest is
transferred subsequent to the initial credit allowance date, are the new members entitled
to claim State NMTCs?
Any natural or juridical person that owns an interest in an investor in a CDE on a credit
allowance date or anniversary date of the initial investment will be allowed to claim a
percentage of credits available to the investor in the CDE on that date.
However, if an operating agreement is in effect at the time of the passing of a credit
allowance date, the credits will flow through as detailed in the operating agreement.
For example, if the operating agreement provides that 100% of the credits will flow
through to a member that has a 1% interest in the LLC or provides that credits shall flow
through to the original members which may no longer be members of the LLC, without
regard to federal partnership rules regarding special allocations, the credits will flow
through as detailed in the operating agreement.
5.
May an investor in a CDE or its members transfer to one or more other taxpayers
all or part of the State NMTCs to which it is entitled on each credit allowance date?
Louisiana Revised Statute 47:6016(F) provides that any tax credits not previously
claimed by any taxpayer against its income or franchise tax may be sold to another
Louisiana taxpayer subject to certain conditions. If an investor has credits that it has not
previously claimed, they may be sold as provided in the State NMTC statute and
regulations promulgated thereunder.

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Page 3 of 8
With regard to credits which have already become available to be claimed by virtue of
the passing of a credit allowance date, the investor may transfer all or any portion of the
credits they are entitled to claim but have not themselves claimed or transferred.
With regard to credits which have not yet become available to be claimed, but which will
become available to be claimed upon the arrival of future credit allowance dates, the
rights to receive future credits can only be transferred by transfer of an interest in the
investor.
When transferring the credits, the transferor must include with their closing documents a
New Markets Transfer Form, R-10613, available on the department’s web page at
www.revenue.louisiana.gov. The transferor must update their New Markets Tax Credit
Summary Sheet, which will be issued with their approved application, each time the
credit is transferred and send an updated summary sheet to the Department within 30
days of the sale. The transferee must submit the New Market Transfer Form with their
return to claim the credits.
6.
Must the proceeds from the sale of a member’s interest in an investor, who earned
State NMTCs, be reinvested in that same investor?
No. Louisiana Revised Statute 47:6016 does not provide that the sales proceeds from the
sale of an interest in an investor, who earned State NMTCs, must be reinvested into that
same investor.
7.

When are the State NMTCs earned?

Louisiana Revised Statute 47:6016 provides that the right to the entire amount of the
credit is earned on the initial investment date. However, a natural or juridical person is
only entitled to use or claim a percentage (as determined under La. R.S. 47:6016(B)(2))
of the credits earned on the “credit allowance date” as defined by La. R.S. 47:6016(B)(3).
8.
Must the holder of the State NMTCs reduce its basis in the investment in a
manner similar to the basis reduction required for federal credits by 26 USC §45D(h)?
Basis is not a factor in computing Louisiana income tax liability. However, Louisiana
income tax liability does begin with federal items of income and expense. To the extent
that the basis reduction provided for in 26 USC 45(h) impacts the investor’s federal items
of income and expense, this impact will affect the investor’s Louisiana income as well.
Nevertheless, the basis reduction provided for in 26 USC 45(h) will not affect the
availability of Louisiana’s New Market Tax Credit.
9.

With respect to QEIs made prior to July 2007:

State NMTCs are available to be claimed or transferred on the initial credit allowance
dates and six subsequent credit allowance dates. On the first three credit allowance dates,
1% of the credits earned are allowed. On the last four credit allowance dates, 2% of the
credits earned are allowed. The department is prohibited from granting more than five
million dollars of credits per year.
Louisiana Revised Statute 47:6016(B) also provides for the calculation of the adjusted
purchase by stating:
The adjusted purchase price shall mean the product of:

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(a) The amount paid to the issuer of the qualified equity investment for
such qualified equity investment and which, in turn, has been invested in
qualified low-income community investments.
(b) A fraction, the numerator of which is the dollar amount of qualified
low-income community investments held by the issuer of the qualified
equity investments in the state determined as of the immediately preceding
credit allowance date, and the denominator of which is the total dollar
amount of qualified low-income community investments made by the
issuer determined as of the immediate preceding credit allowance date.
To apply this statute in calculating the investor’s adjusted purchase price, the investor
must multiply the amount of the qualified equity investment which in turn has been
invested in a qualified low income business, by a fraction the numerator of which is
composed of the dollar amount of qualified low income community investments held by
the issuer of qualified low income investments held in the state as of the immediately
preceding credit allowance date. However, the dollar amount of qualified low-income
investments held by the investor immediately preceding the credit allowance date is
impossible to determine since no investments had been made on the “immediately
preceding” credit allowance date.
Similarly, the denominator of the fraction used to determine the investor’s adjusted
purchase price would be the dollar amount of total qualified low-income investment
made by the issuer determined as of the “immediately preceding” credit allowance date.
However, the “immediately preceding” credit allowance date is impossible to determine
because on the immediately preceding credit allowance date, no investment had been
made by the investor.
To illustrate the absurd result of a faithful application of the language of La. R.S.
47:6016(B) prior to the 2007 Regular Session amendments, consider the following
example. Investor Corporation invests $5 million dollars into a “community development
entity” (CDE) that will further invest the $5 million dollars in a “qualified active lowincome community business” (QALICB). The investor hopes to earn state NMTCs in
return for the investment.
Under La. R.S. 47:6016(B) the first credit allowance date is the date Investor Corporation
makes the $5 million investment. The credit earned on that date is an applicable
percentage times the adjusted purchase price.
The adjusted purchase price under the language prior to the amendments of the 2007
Regular Session is the product of $5 million times a fraction. The numerator of the
fraction is dollar amount of QLICI held by CDE in the state, determined as of the
immediately preceding credit allowance date, and the denominator is the total dollar
amount of qualified low-income community investments made by the CDE determined as
of the immediately preceding credit allowance date.
On the first credit allowance date, which is the date Investor Corporation makes the $5
million investment, the adjusted purchase price would be $5 million times a fraction. The
fraction would be zero divided by zero, since there was no immediately preceding credit
allowance date. In mathematical terms, zero divided by zero is not anything. It is an

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“undefined” value. The calculation required by the statute is impossible. Even if the
immediately preceding credit allowance date were assumed to be the date of the
investment, rather than the preceding credit allowance date, if CDE waits even one day to
make the QLICI investment the fraction would still be zero divided by zero.
On the second credit allowance date, which is the anniversary of the date on which the
initial investment was made, unless CDE made its QLICI on the day of the initial
investment, the fraction would be zero divided by zero again. An investor who took the
action for which the Legislature created an incentive would receive none of the incentive.
As a result, applying the fraction to the amount of the QEI, which in turn has been
invested in a QALICB by the investor, yields an undefined number. Louisiana Civil Code
Article 9 states, “When a law is clear and unambiguous and its application does not lead
to absurd consequences, the law shall be applied as written and no further interpretation
may be made in search of the intent of the legislature.” Richard v. Hall, 2003-1488 874
So.2d 131 (La. 4/23/04). In this instance, how to calculate the adjusted purchase price is
clear and unambiguous; however, the calculation will yield an undefined amount, which
is absurd.
Because application of La. R.S. 47:6016(B)(1), as written, yields an absurd result, “the
letter of the law must give way to the spirit of the law and the statute so as to produce a
reasonable result.” Hall, (874 So.2d 131 (citing Swat 24, 2000-1695 808 So.2d).
Fortunately, during the 2007 Regular Session, the definition of adjusted purchase price
was amended to provide as follows:
(b) A fraction, the numerator of which is the dollar amount of qualified
low-income community investments held by the issuer of the qualified
equity investment in the state, determined as of the credit allowance date
for which the calculation is made, and the denominator of which is the
total dollar amount of qualified low income community investments made
by the issuer, determined as of the credit allowance date for which the
calculation is made. …
This amendment removed the wording “immediately preceding” from the statute which
resulted in an absurd connotation. For the purpose of calculating the adjusted purchase
price for credits issued before July 1, 2007, the department will apply the definition of
adjusted purchase price as amended in Act 379 of the 2008 Regular Session.
10.

With respect to QEIs made after July 2007 and before April 2008:

Louisiana Revised Statute 47:6016 as amended provides that the right to the entire
amount of the credit is earned on the initial investment date. However, a natural or
juridical person is only entitled to use or claim a percentage (as determined under La.R.S.
47:6016(B)(2)) of the credits earned on the "credit allowance date" as defined by La.R.S.
47:6016(B)(3). Louisiana Revised Statute 47:6016 also provides that on the first and
second credit allowance dates, only 10% of the QEI invested on the initial credit
allowance date is available to be claimed or transferred. On the third credit allowance
date, only 5% of the QEI is available to be claimed or transferred. Additionally, La. R.S.
47:6016(B) as amended provides for the calculation of the adjusted purchase by stating:

Revenue Ruling 08-011
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The adjusted purchase price shall mean the product of:
(a) The amount paid to the issuer of the qualified equity investment for
such qualified equity investment and which, in turn, has been invested in
qualified low-income community investments.
(b) A fraction, the numerator of which is the dollar amount of qualified
low-income community investments held by the issuer of the qualified
equity investment in the state, determined as of the credit allowance date
for which the calculation is made, and the denominator of which is the
total dollar amount of qualified low income community investments made
by the issuer, determined as of the credit allowance date for which the
calculation is made. …
Louisiana Revised Statute 47:6016(B)(1)(b) also provides:
For purposes of the initial credit allowance date only, the issuer of the
qualified low-income community investment will be deemed to hold the
amount of qualified low-income community investments, both in the state
and outside the state, that the issuer projects in the applications for the
qualified equity investment submitted pursuant to subsection E of this
Section. If the issuer of the qualified equity investment fails to make
sufficient investments in the state to match such projections by the first
anniversary date of its credit allowance, the state may disallow or
recapture a portion of the credits from the holder of the qualified equity
investment so that the credit earned for the initial credit allowance date
reflects the actual investments made by the issuer.
Lastly, La R.S. 47:6016(B)(1)(c) provides that the maximum amount of qualified lowincome community investments that may be issued by a single business shall not exceed
$15 million.
Therefore, the adjusted purchase price is the QEI times a fraction. The numerator of the
fraction is dollar amount of QLICI held by an investor in the state, determined as of
credit allowance date for which the calculation is made or, for the initial credit allowance
date, the dollar amount an investor projects will be made in the state, and the
denominator is the total dollar amount of QLICI made by the investor determined as of
the credit allowance date for which the calculation is made or, for the initial credit
allowance date, the dollar amount an investor projects will be made.
However, sometimes this calculation yields an absurd result. For example, an investor
invests in a CDE that issues two separate qualified equity investments: QEI A made on
December 23, 2005, $10 million invested in Louisiana; QEI B made on December 27,
2005, $5 million invested in Texas. One hundred percent of the QLICIs made from QEI
A were invested in Louisiana; however, in the aggregate, the two qualified equity
investments were used to fund QLICI both inside and outside of Louisiana.
Applying the statute as written, in order to calculate the initial adjusted purchase price, all
of the QLICIs made by the CDE on or before December 23, 2005, (the date the $10
million investment was made) would have to be considered. Only one of the two
qualified equity investments described above (QEI A) was made on or before December

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23, 2005. Out of this $10 million investment, a total of $10 million in QLICIs were made,
all of which were made for use in Louisiana. Thus, again applying the statute as written,
to determine the initial adjusted purchase price, the $10 million investment would be
multiplied by a fraction, the numerator of which is $10 million (the total amount of
QLICIs made in Louisiana on or before December 23, 2005) and the denominator of
which is $10 million (the total amount of QLICIs made by the CDE as of December 23,
2005), which amounts to $10 million multiplied by 100 percent, which equals $10
million. Therefore, in this instance, the investor’s initial adjusted purchase price is 10
million dollars.
However, once $5 million QEI B is made and the $5 million QLICI is invested in Texas,
then the ratio for QEI A would be reduced applying the current version of the law. The
new ratio would be as follows: $10 million times ($10 million divided by $15 million)
which is 66 percent. Ten million dollars times 66 percent would be $6.6 million.
Consequently, because QEI B was invested in another state (Texas), the investor’s
adjusted purchase price for QEI A would only be $6.6 million even though 100 percent of
QEI A (10 million dollars) was made in Louisiana.
Though the law is clear and unambiguous relative to calculating the adjusted price, the
result is unfair and absurd. Louisiana Civil Code Article 9 states, “When a law is clear
and unambiguous and its application does not lead to absurd consequences, the law shall
be applied as written and no further interpretation may be made in search of the intent of
the legislature.” Richard v. Hall, 2003-1488, 874 So.2d 131 (La. 4/23/04). Richard v.
Hall also provides that, “the letter of the law must give way to the spirit of the law and
the statute so as to produce a reasonable result.” (874 So.2d 131, 148 (citing SWAT 24
Shreveport Bossier, Inc. v. Bond, 2000-1695, p. 12, 808 So.2d 294, 302 (La. 6/29/01)).
Louisiana Revised Statute 47:6016 provides that the purpose of this legislation is to
“encourage and attract private sector capital investment” to certain areas in the state.
However, applying the law as written would discourage Louisiana investment because
there is no way to ensure and protect their investment. The legislative intent is satisfied
by counting only those QLICIs that were made from specific qualified equity investment
for which State NMTCs are sought in the calculation of the “adjusted purchase price”
under La. R.S. 47:6016(B)(1).
Consequently, the adjusted purchase price will not subsequently be adjusted on any credit
allowance date as a result of additional qualified equity investments made by an investor
whether such investments are within or outside of Louisiana.

11. With respect to QEI’s made after April 2008:
    Louisiana Revised Statute 47:6016(C) of the State NMTC statute enables any natural or
    juridical person that holds a “qualified equity investment, which, in turn, has been
    invested in a QALICB on a “credit allowance date” to claim a credit against such
    person’s Louisiana income or corporate franchise tax liability for such taxable year. The
    state NMTC statute itself is modeled upon, and incorporates part of, the federal NMTC.
    For purposes of calculating the amount of state NMTCs available on a per project basis,
    Section 6016(B)(1)(c)(ii) of the state NMTC statute imposes a maximum, per project cap
    of $5,000,000 in QEI issued on or after April 1, 2008, which amounts to a per project cap

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of $1,250,000 in state NMTCs. In addition, La. R.S. 47:6016(E) of the state NMTC
statute (i) limits the aggregate amounts of State NMTCs available to all taxpayers to
$50,000,000 over the life of the program and (ii) requires taxpayers who desire to use the
State NMTCs to submit an application for an allocation for the same to the Secretary of
the Louisiana Department of Revenue. Louisiana Revised Statute 47:6016(B) as amended
provides for the calculation of the adjusted purchase by stating:
The adjusted purchase price shall mean the product of:
(a) The amount paid to the issuer of the qualified equity investment for
such qualified equity investment and which, in turn, has been invested in
qualified low-income community investments.
(b) A fraction, the numerator of which is the dollar amount of qualified
low-income community investments held by the issuer of the qualified
equity investment in the state, determined as of the credit allowance date
for which the calculation is made, and the denominator of which is the
total dollar amount of qualified low income community investments made
by the issuer, determined as of the credit allowance date for which the
calculation is made.
Louisiana Revised Statute 47:6016(B)(1)(b) also provides:
For purposes of the initial credit allowance date only, the issuer of the
qualified low-income community investment will be deemed to hold the
amount of qualified low-income community investments, both in the state
and outside the state, that the issuer projects in the applications for the
qualified equity investment submitted pursuant to subsection E of this
Section. If the issuer of the qualified equity investment fails to make
sufficient investments in the state to match such projections by the first
anniversary date of its credit allowance, the state may disallow or
recapture a portion of the credits from the holder of the qualified equity
investment so that the credit earned for the initial credit allowance date
reflects the actual investments made by the issuer.
Interested parties should contact Policy Services Division at 225-219-2780
Cynthia Bridges
Secretary
By:

Nina S. Hunter, Attorney
Policy Services Division

A Revenue Ruling is issued under the authority of LAC 61III.101 (C). A Revenue Ruling is written to
provide guidance to the public and to Department of Revenue employees. It is a written statement issued to
apply principles of law to a specific set of facts. A Revenue Ruling does not have the force and effect of
law and is not binding on the public. It is a statement of the department's position and is binding on the
department until superseded or modified by a subsequent change in statute, regulation, declaratory ruling,
or court decision.