Louisiana Revised Statutes 36:104.1 – Fee for independent certified public accountant or tax attorney verification reports required for certain Department of Economic Development programs
Terms Used In Louisiana Revised Statutes 36:104.1
- Contract: A legal written agreement that becomes binding when signed.
- Office: means each principal operational unit within a department, except the executive office of the secretary. See Louisiana Revised Statutes 36:3
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Statute: A law passed by a legislature.
A. In order to protect the integrity of its programs by ensuring that tax credits are certified only for eligible expenditures, and to provide for uniformity in expenditure verification reporting, the Department of Economic Development shall directly engage and assign an independent certified public accountant, hereinafter referred to as “CPA” or tax attorney to prepare for the department any required expense or expenditure verification report on a tax credit applicant’s cost report of expenditures or claimed expenditures for all of the following programs:
(1) Motion picture investor tax credit program, La. Rev. Stat. 47:6007.
(2) Research and development tax credit program, La. Rev. Stat. 47:6015.
(3) Digital interactive media and software tax credit program, La. Rev. Stat. 47:6022.
(4) Sound recording investor tax credit program, La. Rev. Stat. 47:6023.
(5) Musical and theatrical production income tax credit program, La. Rev. Stat. 47:6034.
(6) Any other program as provided by statute or department rule.
B. For purposes of this Section, the term “certified public accountant”, or “CPA”, shall mean a person who meets all of the following qualifications:
(1) Maintains an active unrestricted original certified public account license.
(2) Maintains a current Louisiana certified public account firm permit.
(3) Actively participates in a Peer Review Program approved by the State Board of Certified Public Accountants of Louisiana.
(4) Completes eight hours of continuing professional education in approved Department of Economic Development tax credit attestation courses per reporting cycle.
(5) Is capable of conducting two levels of review within the CPA firm or, if not within the firm, then through a cooperative endeavor with another CPA for the review of a verification report prior to its issuance.
C. For purposes of this Section, the term “tax attorney” shall mean a person who meets all of the following qualifications:
(1) Admitted to the practice of law in Louisiana.
(2) Either possesses a Masters of Law in Taxation or Tax Law from an ABA-accredited law school, or is Board Certified as a Tax Law Specialist by the Louisiana Board of Legal Specialization.
(3) Practices in a law firm with an office in Louisiana.
(4) Completes six hours of continuing legal education in the federal research and development tax credit under Section 41 of the Internal Revenue Code per reporting cycle.
D. The applicant seeking certification of tax credits shall be responsible for and assessed an expenditure or expense verification report fee which shall be equal to the actual cost of the verification report. The fee shall not exceed twenty-five thousand dollars and shall be based upon either an hourly rate not to exceed two hundred twenty-five dollars per hour for contract services, or the pro rata cost of salary and benefits for a department-employed CPA.
E. The applicant seeking certification of tax credits shall be required to submit an up-front deposit of the expenditure or expense verification report fee, which shall not exceed fifteen thousand dollars, as required by the relative program statute or rules.
F. The applicant seeking tax credits shall make all records related to the tax credit application available to the CPA or tax attorney assigned by the department to prepare and submit to the department a verification report on the applicant’s cost report of expenditures or expenses.
G. The term “verification report” shall include any agreed-upon procedure, tax opinion, attestation, or other report required by statute or department rule. Prior to submission to the department, a verification report shall require two levels of review either within a CPA firm, or a second review through a cooperative endeavor with another CPA.
Acts 2015, No. 412, §1.