Provides for the tax periods applicable to and amounts of tax credits for the new markets tax credit program (OR -$30,000,000 GF RV See Note)
Impact
The proposed changes in HB 503 are significant for the state of Louisiana as they reflect a commitment to supporting community development, particularly in areas that have historically faced economic challenges. By increasing the tax credit cap, the bill encourages more substantial investments in qualified equity investments, which can directly lead to economic revitalization in low-income communities. The extension of the program also provides more time for investors to take advantage of these tax incentives, potentially leading to increased funding for local projects and initiatives that improve community welfare.
Summary
House Bill 503, introduced by Representative Girod Jackson, focuses on the new markets tax credit program, which is designed to encourage investment in low-income communities through tax incentives. The bill proposes to increase the total aggregate amount of tax credits allocated under the program from $50 million to $87.5 million. Additionally, it provides for specific allocations of tax credits for the years 2011 and 2012, effectively extending the program's expiration from December 31, 2013, to December 31, 2014. This initiative is aimed at stimulating economic activity and development in urban and economically disadvantaged areas of Louisiana.
Sentiment
The sentiment surrounding HB 503 appears to be largely supportive among lawmakers advocating for economic growth and community investment. Proponents argue that the increased tax credits will facilitate more investments, which could help raise living standards and ignite business activities in underprivileged neighborhoods. However, as with many tax incentive programs, there may be some skepticism regarding the effectiveness of such measures in genuinely benefiting the communities they aim to support, as critics may call for accountability and metrics to measure the success of such investments.
Contention
Notable points of contention regarding HB 503 may arise from discussions about the efficacy of tax incentives in achieving the desired economic outcomes. Critics may question whether simply increasing tax credits will result in meaningful investment or if it could lead to misallocation of resources. Furthermore, there could be concerns about the long-term sustainability of such programs and the potential for dependency on state-funded incentives to drive economic growth, raising broader questions about the need for comprehensive economic policy reform.
Authorizes the issuance of $30 million more New Market Tax Credits, provides for when the credits may be issued and taken on a return, and extends the period tax credits are allowed from ending on December 31, 2013, to an indefinite period if the qualified equity investment is issued prior to December 31, 2014. (gov sig) (EN -$30,000,000 GF RV See Note)
Converts the Angel Investor Tax Credit Program to the Angel Investor Rebate Program and provides for the rebate program (EN -$20,000,000 GF RV See Note)