After beginning the 2024 Third Extraordinary Session of the Louisiana legislature on an extensive list of tax credit programs proposed to be eliminated by Governor Landry and his legislative allies, the State Historic Tax Credit Program survived in the end with only one substantive change. 

Pursuant to Act 5 signed by Governor Landry on December 4, 2024, for State Commercial Part 2 applications received by the Department of Culture, Recreation and Tourism on or after January 1, 2025, the maximum aggregate total of tax credits reserved for any given tax year is now capped at $85 million annually. This represents a reduction in the amount of credits available annually, with the cap set at $125 million annually for previous tax years.

For State Commercial Part 2 applications received by the department prior to January 1, 2025, the $125 million annual cap will continue to apply.

To read the text of Act 5 click here.

Louisiana Historic Tax Credits: What Developers Need to Know

First adopted in 2002, the Louisiana historic tax credit is a dollar-for-dollar tax credit, as opposed to an expense deduction, against Louisiana income or corporation franchise tax for the amount of eligible costs and expenses incurred by a property owner during the rehabilitation of a historic building located in a Louisiana downtown development district or a cultural district.

To a real estate developer in Louisiana, state Historic Tax Credits (HTC) often times make the difference between a historic rehabilitation project being economically feasible as opposed to an undevelopable project.

Our previous article, “Louisiana Historic Tax Credits: What Developers Need to Know,” explores the benefits of the HTC and the steps involved in obtaining the credit in more detail.

Please note that in addition to the aggregate total of tax credits reserved for any given tax year now capped at $85 million annually, the tax credit reservation form mentioned in this article is no longer a separate form. It has been rolled into the new, revised Part 2 form (available on the department’s website) that now must be used instead of prior versions.