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 La. Rev. Stat. 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 La. Rev. Stat. 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.

            Acts 2023, No. 404, §1.