La. Admin. Code tit. 61 § I-1933

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-1933 - Restaurant Oyster Shell Recycling Tax Credit

A. Definitions

Compensation-for purposes of this section, any amount of payment in any form that contributes to an entity's profit.

CRCL-the Coalition to Restore Coastal Louisiana.

Department-the Department of Revenue.

OSRP-an oyster shell recycling program or activity certified by the department for purposes of this credit. The CRCL is considered an OSRP.

Restaurant-a food establishment as defined by LAC 51:XXIII.101 that

a. holds a state health department permit to operate,

b. has an owner or designated employee possessing a state food safety certificate,

c. collects, accounts for, and remits state sales tax to the department.

Taxpayer-a person who is required to file a Louisiana income tax return.

B. General Description

1. For taxable years beginning on or after January 1, 2024 but before January 1, 2029, taxpayers are eligible for the restaurant oyster shell recycling tax credit for donations of oyster shell material by restaurants to the oyster shell recycling program of the Coalition to Restore Coastal Louisiana or other oyster shell recycling program or activity approved by the department. The credit is a refundable income tax credit and is limited to $2,000 per restaurant.

2. OSRPs are certified by the department to receive donations eligible for the tax credit. Only donations to the CRCL or an OSRP qualify for the credit.

C. Claiming the Tax Credit

1. Taxpayers claiming the restaurant oyster shell recycling credit must attach Form(s) R-90154, Receipt for Restaurant Oyster Shell Recycling Credit, to their return. The receipt shall contain the information set forth in this paragraph and must be issued by the OSRP to the donor on a quarterly basis, or monthly if approved by the department.

a. The OSRP section shall contain the following information:

i. name and physical location address of the restaurant;

ii. name of the OSRP;

iii. beginning and ending dates of the donation period;

iv. receipt number for tracking; and

v. the total amount, in pounds, of oyster shell material donated by the donor to the OSRP during the donation period.

b. The donor section shall contain the following:

i. legal name of the restaurant making the donation, whether an individual or entity; and

ii. last four digits of the Social Security number, or Louisiana revenue account number, of the owner of the restaurant that donated to the OSRP; and

iii. the amount of the credit.

c. The amount of donated oyster shell material may be ineligible for the credit for failure to include any information required on the receipt.

2. The credit shall be claimed for the taxable year in which the donation was made.

a. Exception: Receipts issued on a quarterly basis shall be claimed for the taxable year in which the quarter ends.

3. If the total amount of credits claimed in a particular calendar year exceeds the $100,000 annual cap, the Department shall treat the excess as having been applied for on the first day of the following year. To utilize the credits in the subsequent year during which the taxpayer's claim has priority, the taxpayer shall claim the credits on the subsequent tax year's return and file it prior to the end of the calendar year. If the taxpayer fails to file a return in the subsequent year, the credits shall lose their priority status.

D. Application for Certification as an Oyster Shell Recycling Program

1. An organization that seeks to become certified as an OSRP may apply for certification at any time during the year by submitting a completed Form R-90152, Application for Certification as an Oyster Shell Recycling Program to the department.

2. The application shall contain:

a. the name, mailing and physical address, Louisiana revenue account number, and federal employer identification number of the OSRP;

b. contact information, including an email address, for the OSRP's designated representative;

c. a statement detailing the planned method of calculating approximate weights of oyster shell material donated to the program;

d. a statement that the program intends use 100 percent of donated oyster shell material to improving water quality, benefitting aquatic habitats, supporting local economies, and protecting the coastline of this state;

e. a statement that the OSRP will not use or otherwise facilitate the use of donated oyster shell material for commercial aquaculture or as aggregate in commercial use;

f. a statement that the program will not receive or provide compensation for donated oyster shell material.

3. Within two months of receipt of an application for certification as an OSRP, the department shall notify the applicant of their status by way of approval notated on theapplication to the email address designated on the application. The notification shall designate whether the OSRP is approved to issue quarterly or monthly receipts to donors. Certification is valid beginning January 1 of the year that an organization is approved.

4. If the application is denied, the department will inform the applicant of its grounds for denial and allow 15 business days from date of notification for the applicant to correct any defects. Grounds for denial include, but are not limited to:

a. failure of the applicant to submit any information required by the application;

b. failure of the applicant to submit any additional information requested by the department.

E. OSRP Reporting

1. An OSRP shall submit a completed Form R-90154, Receipt for Restaurant Oyster Shell Recycling Credit, with a completed OSRP section to each donor on a quarterly basis, or monthly if approved by the department.

2. An OSRP shall file an annual report with the department no later than January 31 of each year to OysterShell.RecyclingCredit@la.gov.

3. The annual report shall contain the following information:

a. a certification that the OSRP continues to abide by the statements attested to in their OSRP application;

b. copies of all receipts issued to donors during the prior calendar year;

c. a listing in Excel format of all donations made for the purpose of this credit. For every donation of oyster shell material made during the prior calendar year, include:

i. the date of donation, the weight of materials donated, in pounds, the restaurant name and physical location address, and the receipt number on which the donation is included;

ii. if issuing receipts quarterly, the last day of the quarter;

d. notification to the department of changes that may affect certification eligibility.

La. Admin. Code tit. 61, § I-1933

Promulgated by the Department of Revenue, Tax Planning and Policy Division, LR 501503 (10/1/2024).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1511 and R.S. 47:6043.