La. R.S. 47:6043 — Recycling of oyster shells; restaurant tax credit

A. The purpose of this Section is to create an incentive for Louisiana restaurants to
divert from landfills a natural resource that would otherwise be a waste product and instead
facilitate the use of that resource in improving water quality, benefitting aquatic habitats,
supporting local economies, and protecting the coastline of this state.
B.(1) There shall be allowed a refundable credit against Louisiana income tax for
restaurants that donate oyster shells for beneficial use in accordance with the qualifications
provided in this Subsection.
(2) In order to be eligible for the credit in a taxable year, a restaurant claiming the
credit shall, during the taxable year, have donated oyster shell material to the Oyster Shell
Recycling Program of the Coalition to Restore Coastal Louisiana or any other oyster shell
recycling program or activity designated in rule by the Department of Revenue as an
approved program or activity.
C.(1) The amount of the credit shall equal one dollar for each fifty-pound increment
of oyster shell material donated to a qualifying oyster shell recycling program or activity or
two thousand dollars, whichever is less.
(2) The total amount of credits granted pursuant to the provisions of this Section
shall not exceed one hundred thousand dollars per calendar year.
(3) The granting of tax credits authorized by this Section shall be on a first-come,
first-served basis. If the total amount of credits claimed in a particular calendar year exceeds
the amount of tax credits authorized for that year, the Department of Revenue shall treat the
excess as having been applied for on the first day of the subsequent year. The department
shall treat all requests received on the same business day as received at the same time. If the
aggregate amount of the requests received on a single business day exceeds the total amount
of available tax credits, the department shall approve tax credits on a pro rata basis.
D. If the amount of the credit authorized by this Section exceeds the amount of the
taxpayer's tax liability for the taxable year, the excess tax credit amount shall constitute an
overpayment as defined in R.S. 47:1621(A), and the secretary shall make a refund of the
overpayment from the current collections of the taxes imposed pursuant to Chapter 1 of
Subtitle II of this Title. The right to a refund shall not be subject to the requirements of R.S.
47:1621(B).
E. Any taxpayer claiming the credit authorized in this Section shall maintain all
records necessary to verify his eligibility for the credit and for the amount of credit claimed.
If requested by the Department of Revenue, a taxpayer shall submit to the department, in
connection with the filing of his corporation, individual, or fiduciary income tax return, any
records required to be maintained by the provisions of this Subsection.
F. The credit authorized in this Section may be claimed by corporations, individuals,
and other entities in accordance with the following provisions:
(1) An entity taxed as a corporation for Louisiana income tax purposes shall claim
any credit authorized by this Section on its corporation income and franchise tax return.
(2) An individual, estate, or trust shall claim any credit authorized by this Section on
its income tax return.
(3) An entity that is not taxed as a corporation shall claim any credit authorized by
this Section on the returns of the partners or members in accordance with the following
requirements:
(a) Corporate partners or members shall claim their share of the credit, respectively,
on their corporation income tax returns.
(b) Individual partners or members shall claim their share of the credit, respectively,
on their individual income tax returns.
(c) Partners or members that are estates or trusts shall claim their share of the credit,
respectively, on their fiduciary income tax returns.
G. The secretary of the Department of Revenue shall promulgate rules in accordance
with the Administrative Procedure Act as are necessary to implement the provisions of this
Section. In developing such rules, the secretary of the Department of Revenue shall engage
and collaborate with the secretary of the Department of Wildlife and Fisheries and may
incorporate recommendations of the secretary of the Department of Wildlife and Fisheries
in any final rules designating approved oyster shell recycling programs and activities.
H. No credits authorized by this Section may be claimed for any taxable year
beginning after December 31, 2028.