Louisiana Senate Bill SB40

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 5/10/11
• Engrossed: 5/18/11
• Refer: 5/19/11
• Report Pass: 6/13/11
• Enrolled: 6/22/11
• Vetoed: 7/1/11

Caption

Authorizes DEQ to once again grant transferable credits for the investigation or remediation of hazardous waste "brownfields" sites on and after July 1, 2011 through December 31, 2013, clarifies that the credit may be granted to any public or private "entity" whether taxable or non-taxable, and specifically authorizes credits for the remediation of public parks, playgrounds and other recreational areas. (7/1/11) (EN DECREASE GF RV See Note)

Impact

If enacted, SB 40 would amend existing state laws to expand the scope and distribution of tax credits available for the cleanup of brownfields. It clarifies that these tax credits can be granted for the remediation of public lands, including parks and playgrounds, thus promoting healthier and safer recreational areas for communities. The state’s Department of Environmental Quality (DEQ) would play a central role in administering these credits, ensuring compliance with environmental standards while fostering collaboration with federal partners to enhance funding opportunities for such projects.

Summary

Senate Bill 40, also known as the Brownfields Investor Tax Credit, seeks to promote environmental economic development in Louisiana by encouraging the cleanup, redevelopment, and reuse of brownfields sites. The bill introduces a framework for providing tax credits to public and private entities that invest in the remediation of these contaminated properties. Recognizing that the presence of hazardous substances on these sites often deters potential development, the legislation aims to facilitate investment and revitalization of impacted neighborhoods, contributing to local economic growth and public welfare.

Sentiment

The general sentiment surrounding SB 40 is favorable among proponents who advocate for environmental restoration and economic revitalization. Supporters argue that this bill equips investors with necessary financial incentives to take on the challenges of brownfield redevelopment. However, there are concerns among some stakeholders about the potential for leniency towards polluters, emphasizing the need for stringent oversight to prevent misuse of tax credits. This dichotomy illustrates a broader debate on balancing economic development with environmental protection.

Contention

A notable point of contention in the discussions relates to the eligibility criteria for these tax credits. Specifically, corporations or partnerships that have previously declared bankruptcy or have outstanding obligations to the state are deemed ineligible for tax incentives. This stipulation raises questions about the inclusion of responsible entities in remediation efforts, leading to discussions about how best to ensure that the credits incentivize genuine improvement without facilitating irresponsible practices. The effectiveness of the DEQ in overseeing and administering the tax credit program is also a critical focus, as the bill outlines various procedural requirements and stipulations.