DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Katrina Jackson HB No. 316
Abstract: Requires state agencies which administer tax credits and rebates (tax incentives) to
report annually, no later than March 1, to the legislature, information regarding the tax
incentives.
Present law requires the Dept. of Revenue (DOR) to annually prepare a tax exemption budget
which includes state revenue loss for the preceding three years caused by each tax exemption,
deduction, exclusion, and credit authorized by law. Further requires the legislative auditor's
office to conduct performance audits of state agency programs in order to evaluate the impact,
efficiency, and cost-effectiveness of programs and to identify programs that are vital and in the
best interests of the citizens of La. The DOR, and various other state agencies, administer the tax
credits and rebates authorized by present law.
Proposed law retains present law.
Proposed law requires, in order for the legislature and the legislative auditor's office to get
accurate and complete information regarding how much tax credits and rebates cost the state each
year, no later than March 1 of each year, each state agency which administers a tax credit or tax
rebate, (tax incentives), to prepare and submit a report to the legislature regarding the tax
incentive the agency administers. The report shall include an assessment of each tax incentive
based on the following criteria:
(1)Whether or not each tax incentive has been successful in meeting the purpose for which it
was enacted.
(2)Whether or not the state receives a positive return on investment from the business or
industry for which the tax incentive is intended to benefit.
(3)Unintended or inadvertent effects, benefits, or harm caused by each tax incentive.
Proposed law defines "state agency" as any office, department, board, commission, institution, or
division within the executive branch of state government. Administration of a tax incentive shall
be evidenced by a legal requirement or authorization to undertake any of the following actions
for purposes of administration of the tax incentive:
(1)Promulgate rules or regulations; in cases where more than one agency has rulemaking
authority, the report shall be prepared collaboratively. (2)Eligibility or qualifications.
(3)Agency contract with an entity for purposes of a tax incentive.
(4)Oversight or substantial administrative functions for a tax incentive when the public
purpose associated with the tax incentive is within the core mission of the agency.
Proposed law requires the DOR to develop a format for such reports similar to the format used in
reporting the annual tax exemption budget required by present law to be made available to and
used by all state agencies and offices in preparation of the report required by proposed law.
Proposed law requires the House Committee on Ways and Means and the Senate Committee on
Revenue and Fiscal Affairs, hereinafter "committees", to conduct hearings on the reports every
odd-numbered year, to be concluded 30 days before the beginning of the regular session of the
legislature. Further requires the committees to analyze and consider tax incentives which caused
revenue loss to the state and authorizes the committees to report their findings or
recommendations developed as a result of the hearings to the legislature.
(Adds R.S. 47:1517.1)