Louisiana House Bill HB371

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 6/2/11
• Engrossed: 6/9/11
• Report Pass: 6/21/11

Caption

Authorizes issuance of the Brownfields Investor Tax Credit to eligible taxpayers (RE DECREASE GF RV See Note)

Impact

The legislation proposes a tax credit structure dependent on the nature of the investment made by eligible taxpayers in either voluntary remedial investigations or remediation actions. Specifically, it allows for a tax credit of 15% on the total investment for investigations and 50% for remediation actions, though the total tax credits may not exceed the investment itself. This initiative is expected to create economic opportunities through environmental restoration, ultimately supporting affordable housing and improved living conditions in affected communities.

Summary

House Bill 371 establishes the Brownfields Investor Tax Credit in Louisiana, designed to promote the cleanup, redevelopment, and productive reuse of Brownfields sites. The bill aims to alleviate financial burdens that hinder developers from undertaking environmental assessments and cleanups of properties that may have hazardous contamination. The program targets local housing authorities that engage local developers or contractors in restoring these underutilized properties, thus revitalizing impacted neighborhoods while addressing potential public health concerns.

Sentiment

Overall sentiment around HB 371 appears to be positive, with advocates emphasizing the bill's potential to stimulate economic development and improve environmental conditions. Supporters argue that it provides necessary financial incentives for local authorities to invest in essential cleanup efforts. However, there is underlying caution regarding the execution of such credits, particularly around ensuring accountability and effectiveness in the utilization of public funds and maintaining environmental quality standards.

Contention

Notable points of contention center around the bill's eligibility criteria, specifically defining who qualifies as an 'eligible taxpayer.' While the intent is to encourage local housing authorities and developers to participate, there is concern about the potential for exploitation or inadequate oversight in how these tax credits are issued and claimed. Additionally, the stringent conditions for tax credit transferability may affect the financial mechanics of how investments in Brownfields are ultimately handled.