Authorizes a tax credit for donations made to the La. Community and Technical College System (OR DECREASE GF RV See Note)
Impact
The introduction of this tax credit is anticipated to positively impact state laws by incentivizing donations to educational institutions, which could lead to improved funding and support for the Louisiana Community and Technical College System. Supporters of the bill emphasize its potential to stimulate greater philanthropic engagement with community colleges, potentially increasing the quality of educational programs offered and making higher education more accessible for students in Louisiana.
Summary
House Bill 185 aims to encourage financial contributions towards the Louisiana Community and Technical College System by offering a tax credit to individuals and corporations that make donations. The bill stipulates that donors will receive a credit against their Louisiana income or corporation franchise tax, valued at fifty percent of their donation amount. This initiative is intended to promote donations to community colleges, thereby enhancing educational resources and opportunities in the state. The tax credit applies to taxable periods beginning on or after January 1, 2013.
Sentiment
The sentiment surrounding HB 185 appears to be generally favorable among legislators and educational institutions, as it promotes increased financial support for community colleges. Stakeholders argue that this type of financial incentive could significantly impact the sustainability and growth of educational programs. There may, however, be concerns regarding the implications for state revenue, as providing tax credits could reduce tax income if not adequately offset by increased donations.
Contention
Despite the overall positive sentiment, points of contention may arise around the potential long-term effects of such a tax incentive on the state's budget and the effectiveness of the bill in achieving its intended goals. Critics might question whether the credit will lead to substantial increases in donations or simply shift existing funds that could have been contributed without the incentive. Additionally, discussions may touch upon the necessity for oversight and regulations regarding how the funds from donations are utilized within the Louisiana Community and Technical College System.
Reduces the amount of certain tax credits beginning January 1, 2014, for income tax credits and January 1, 2015, for corporate franchise credits (RE INCREASE GF RV See Note)
Deletes the tax credit for wind energy systems and changes the credit for solar "energy" systems to a tax credit for both solar "electric" systems and solar "thermal" systems. (gov sig) (OR SEE FISC NOTE GF RV)