§297.6. Reduction to tax due; rehabilitation of residential structures
A.(1) There shall be a credit against individual income tax liability due under this
Title for the amount of eligible costs and expenses incurred during the rehabilitation of an
owner-occupied residential or owner-occupied mixed use structure located in a National
Register Historic District, a local historic district, a Main Street District, a cultural products
district, or a downtown development district, or such owner-occupied residential structure
that has been listed or is eligible for listing on the National Register, or such structure that
has been certified by the State Historic Preservation Office as contributing to the historical
significance of the district, or a vacant and blighted owner-occupied residential structure
located anywhere in the state that is at least fifty years old. The tax credit authorized
pursuant to this Section shall be limited to one credit per structure rehabilitated. The total
credit shall not exceed eighteen thousand five hundred dollars per structure. In order to
qualify for that credit, the rehabilitation costs for the structure must exceed ten thousand
(a) If the credit is for the rehabilitation of an owner-occupied residential structure,
the credit shall be twenty-five percent of the eligible costs and expenses of a rehabilitation
for which an application for credit has been filed for the first time after July 1, 2011, and on
or before July 1, 2015. The credit shall be eighteen and one-half percent of the eligible costs
and expenses of a rehabilitation for which an application for credit has been filed for the first
time after July 1, 2015, and on or before July 1, 2017, and the credit shall be eighteen percent
of the eligible costs and expenses of a rehabilitation for which an application for credit has
been filed for the first time after July 1, 2017. If the residential structure is owned and
occupied by two or more individuals, the applicable percentage shall be based on the sum
of all owner-occupants who contribute to the rehabilitation, and the credit will be divided
between the owner-occupants in proportion to their contribution to the eligible costs and
(b) If the credit is for the rehabilitation of a vacant and blighted owner-occupied
residential structure that is at least fifty years old, the credit shall be thirty-six percent of the
eligible costs and expenses of a rehabilitation for which an application for credit has been
filed for the first time after July 1, 2011.
(2) The tax credit for qualified rehabilitation expenditures shall be divided in five
equal portions to be applied against the tax for the five-year period beginning in the taxable
period in which the rehabilitated residential structure is first placed in service. To be eligible
to use a tax credit portion, the taxpayer who initially earned the credit must continue to own
and occupy the residential structure as the taxpayer's primary residence. If the residential
structure is sold during the five-year period beginning in the taxable period in which the
rehabilitated residential structure is first placed in service, all unused credit portions granted
under this Section shall immediately become void and of no effect.
(3)(a) Eligible structures must be owner-occupied residential property.
(b) A fee shall be charged by the office of cultural development within the
Department of Culture, Recreation and Tourism to review applications based on the amount
of material rehabilitation costs not to exceed two hundred fifty dollars per application.
(4) Any excess of the credit portion allowed in a taxable period over the individual
income tax liability for that taxable period against which the credit can be applied shall
constitute an overpayment, as defined in R.S. 47:1621(A), and the secretary shall make a
refund of such overpayment from the current collections of the taxes imposed by Chapter 1
of Subtitle II of this Title, as amended. The right to a refund of any such overpayment shall
not be subject to the requirements of R.S. 47:1621(B).
(5) The maximum amount of tax credits allowed by the State Historic Preservation
Office to be granted in any calendar year shall not exceed seven million two hundred
thousand dollars. The granting of credits under this Section shall be on a first-come, first-served basis. If the total amount of credits applied for in any particular year exceeds the
aggregate amount of tax credits allowed for that year, the excess will be treated as having
been applied for on the first day of the subsequent year.
B. For purposes of this Section, the following words and phrases shall have the
(1) "Eligible costs and expenses" shall mean qualified rehabilitation expenditures as
promulgated in regulations by the Department of Culture, Recreation and Tourism in
consultation with the Department of Revenue and shall take into consideration qualified
rehabilitation expenditures as defined in Section 47(c)(2)(A) of the Internal Revenue Code
and applicable regulations.
(2) "Rehabilitation" shall mean the process of returning a structure to a state of unity,
through repair or alteration, which makes possible an efficient use while preserving those
portions and features of the structure and its site and environment which makes the structure
and its site and environment historically, architecturally, or culturally significant.
"Rehabilitation" does not include an alteration which is primarily remodeling.
C. The provisions of this Section shall be effective for the taxable years ending prior
to January 1, 2018.
Acts 2005, No. 479, §1, eff. for all taxable years beginning after Dec. 31, 2005, until
and including the tax years beginning on or before Dec. 31, 2009; Acts 2007, No. 298, §1;
Acts 2011, No. 412, §2, eff. July 7, 2011; Acts 2013, No. 272, §1, eff. June 13, 2013; Acts
2015, No. 125, §2, eff. July 1, 2015; Acts 2016, 1st Ex. Sess., No. 29, §2; Acts 2017, No.
400, §§1, 2, and 4, eff. June 26, 2017.
NOTE: Acts 2011, No. 412, §1, amended Acts 2005, No. 479, as amended
by Acts 2007, No. 298, to provide that the credit may be given for all taxable
years beginning after Dec. 31, 2005, until and including the tax years
beginning before Jan. 1, 2016.