1.During or after the production project spends money in the state, a CPA audits the expenditures and issues an audited expenditures report to the project |
2. The project submits the audited expenditures report to the appropriate state agency for certification |
3. The State issues a letter to the project, which states that the credits have been certified and waives any right of recapture of the credits from the end user unless fraud is involved. |
4. When the credits are sold to an end purchaser, a sales agreement is issued with the credit certification letters attached. The letter lists total amount of credits available, how many are sold/transferred in the transaction, and the remaining balance available for further sale/transfer |
5. The selling project issues a notification to the appropriate state agency confirming the credits have been transferred to the end purchaser. Celtic will obtain the agency’s stamp evidencing receipt. |
6. The end user of the credits simply attaches the tax credit certification and the purchase documents to their tax return and takes the tax credit deduction on a particular line of the state income tax form. |
7. Consult a tax professional to confirm applicability to your particular circumstances. |
8. Tax Credit Legislation link: http://www.legis.state.la.us/lss/lss.asp?doc=102363 |