Louisiana Senate Bill SB134

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 5/2/11
• Engrossed: 5/5/11
• Refer: 5/9/11
• Report Pass: 6/6/11
• Enrolled: 6/22/11
• Chaptered: 7/7/11
• Passed: 7/7/11

Caption

Extends the Technology Commercialization Credit and Jobs Program from December 31, 2011 to December 31, 2017 and changes it from a refundable tax credit program to a "rebate" program. (7/1/11) (EN DECREASE GF RV See Note)

Impact

The impact of SB 134 on state laws includes the establishment of clear guidelines for the administration of tax incentives related to technology development. The bill stipulates that applicants claiming tax credits must adhere to specific criteria, including creating at least five new direct jobs, offering health benefits, and maintaining investments in Louisiana technology. Such stipulations are designed to ensure that these incentives yield tangible economic benefits in terms of job creation and retention within the state.

Summary

Senate Bill 134 aims to amend the existing Technology Commercialization Credit and Jobs Program by extending its timeline and altering the nature of the credits it offers. Originally set to expire in 2011, the bill extends the program until December 31, 2017, and transitions it from a refundable tax credit system to a rebate approach. This shift is intended to streamline the process for businesses seeking to benefit from the program while promoting investments in technology commercialization within Louisiana.

Sentiment

General sentiment surrounding SB 134 appears to be positive among proponents who believe it enhances Louisiana's appeal to technology firms and can lead to greater economic prosperity. They argue that the ability to reward companies significantly investing in job creation and technology development is a necessary step forward for the state's economy. Nonetheless, some skepticism exists regarding the potential limitations imposed by the bill on eligibility for other tax incentives, which could hinder small businesses relying on diverse sources of funding to grow.

Contention

Notable points of contention surrounding the bill may arise from the limitations it places on eligible companies, specifically regarding their ability to receive multiple tax incentives simultaneously. Critics argue that this could disproportionately affect smaller or newer businesses, which often rely on multiple funding sources for success. Furthermore, there are concerns about the effectiveness of the rebate system versus the previous tax credit model and whether the changes will actually produce the desired outcomes in job creation and technology advancement.