Authorizes the secretary of the Department of Economic Development to grant a Louisiana Mega Project Energy Assistance Rebate of severance taxes that were paid on natural gas consumed or used directly in the operation of the mega-project facility or consumed indirectly in the manufacture or creation of energy sold to the mega-project facility for its operation. (7/1/10) (EN DECREASE GF RV See Note)
Impact
The bill impacts state laws by creating a framework for economic assistance tied to energy costs specifically for mega-projects. It establishes a mechanism where rebates are offered based on actual severance taxes paid on natural gas consumed directly or indirectly in the operation of these projects. The state will need to assess and verify the tax credits claimed to ensure that assistance does not harm existing competing businesses, thereby adding a layer of compliance and verification that may require additional resources from the Department of Economic Development and the Department of Revenue.
Summary
Senate Bill 624, known as the Louisiana Mega Project Energy Assistance Rebate, is designed to grant rebates on severance taxes paid for natural gas used in the operation of mega-project facilities. The bill grants the secretary of the Department of Economic Development the authority to enter into cooperative endeavor agreements to provide such assistance, contingent upon the approval of the Joint Legislative Committee on the Budget. The rebate aims to lower energy costs, which are a significant factor for the competitiveness of these large-scale projects and their capacity to either locate or expand within the state.
Sentiment
General sentiment on SB624 appears to be supportive among those involved in economic development and big businesses, as it seeks to reduce operational costs for significant investments in the state. However, concerns might arise regarding its potential impact on smaller businesses that could be adversely affected by the preferential treatment granted to large projects. The support would hinge on its perceived ability to enhance job creation and economic growth in Louisiana while balancing the interests of competing local enterprises.
Contention
Notable points of contention include the necessity of the assistance and the criteria for its approval. While proponents argue that lowering energy costs through this rebate will attract and retain mega-projects in Louisiana, detractors may raise concerns regarding fairness and the potential to create an uneven playing field in economic development. The bill requires careful monitoring to ensure that it achieves its objectives without adversely affecting existing businesses in the competitive landscape.
Authorizes the Department of Economic Development to grant up to $5 million of rebates per calendar year at the rate of 35% of an investor's investment in "Louisiana Entrepreneurial Business," not to exceed $1 million per year per business and $2 million total per business and requires the Louisiana Mega-Project Development Fund to be reduced each fiscal year by an amount which equals the rebates granted. (gov sig) (REF DECREASE GF RV See Note)
Requires the Dept. of Economic Development to publish legal agreements, reports, and economic analyses, including project expenditures, regarding each Mega-Project Development Fund and Rapid Response Fund project (EN NO IMPACT GF EX See Note)
Removes the refundable tax credit for ad valorem property taxes paid on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. (gov sig)
Creates the Thomas H. Delpit Area Special District in the parish of East Baton Rouge and grants it certain TIF and tax authority to finance economic development projects within the district. (7/1/10) (EG DECREASE GF RV See Note)
Requires economic impact and performance information in reports to the legislature regarding Mega-Project Development Fund and Rapid Response Fund projects
An Act Concerning The Operations Of The Department Of Energy And Environmental Protection, The Establishment Of A Commercial Property Assessed Clean Energy Program, Water Conservation And The Operations Of The Clean Energy Finance And Investment Authority.
Creates the Competitive Projects Payroll Incentive Program which grants rebates of up to 15% of qualifying payroll to certain businesses and rebates of sales tax or capital expenditures if DED determines it will result in significant positive economic benefit to the state. (7/1/12) (EG DECREASE GF RV See Note)
Constitutional amendment to phase-in over a four-year period an exemption from ad valorem property taxes for inventory held by manufacturers, distributors, and retailers, and natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. (2/3 - CA13s1(A)) (1/1/16)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.