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)]
Smith HB No. 668
Abstract: Changes eligibility requirements for enterprise zone contracts for tax credits
Present law establishes the enterprise zone program through which businesses may enter into
contracts with the Board of Commerce and Industry (hereinafter "board") to receive tax credits in
exchange for the creation of a certain number of jobs which involve employees who meet certain
residency and other requirements.
Present law authorizes that jobs for both full-time and part-time work may satisfy the job
requirements of an enterprise zone contract.
Proposed law changes present law by deleting part-time jobs from those jobs which may satisfy
the requirements of an enterprise zone contract.
Present law provides for conditions under which the board may enter into enterprise zone
contracts. These include certifications by the business regarding the employees it is claiming to
satisfy the requirements for new jobs under an enterprise zone contract.
Present law requires a business certify that at least 35% of its employees meet any of the
following requirements:
(1)Reside in an enterprise zone, an urban enterprise zone, an economic development zone, or
the parish in which the business is located.
(2)Were receiving some form of public assistance prior to employment.
(3)Were considered unemployable by traditional standards, or lacking in basic skills.
Proposed law changes present law by limiting the criteria for employees which qualify for
satisfaction of contract requirements. If the business is located within an enterprise zone, at least
35% of its employees must meet the following requirements, and if the business is not located in
an enterprise zone, at least 50% of its employees must meet the following requirements:
(1)Are residents of an enterprise zone.
(2)Prior to employment they were receiving some form of public assistance. (3)Prior to employment they were considered unemployable by traditional standards, or were
lacking basic skills necessary to gain employment.
(4)Have a felony conviction
Proposed law limits participation in the program for retail businesses which have more than 100
employees nationwide. Such businesses are ineligible for the program unless they are a grocery
store or pharmacy and located within an enterprise zone.
Proposed law provides that beginning January 1, 2014, no more than ten percent of the total
number of contracts awarded in any calendar year may be awarded to businesses which are not
located in an enterprise zone.
Proposed law shall only be applicable to contracts and renewals of contracts executed after the
effective date of this Act.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 51:1787(A)(3) and (B)(3); Adds R.S. 51:1787(B)(6) and (7))