HLS 13RS-1146 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 668
BY REPRESENTATIVE SMITH
TAX CREDITS: Provides requirements for enterprise zone contracts
AN ACT1
To amend and reenact R.S. 51:1787(A)(3) and (B)(3), and to enact R.S. 51:1787(B)(6) and2
(7), relative to incentives for businesses; to provide with respect to the enterprise3
zone program; to provide for requirements for contracts; to provide for limitations4
on contracts; to provide for applicability; to provide for effectiveness; and to provide5
for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 51:1787(A)(3) and (B)(3) are hereby amended and reenacted, and8
R.S. 51:1787(B)(6) and (7) are hereby enacted to read as follows: 9
ยง1787. Incentives10
A. The board, after consultation with the secretaries of the Department of11
Economic Development and Department of Revenue, and with the approval of the12
governor, may enter into contracts not to exceed five years to provide:13
* * *14
(3) The tax credit provided in Paragraph (2) of this Subsection shall be15
applicable only to a position within the state that did not previously exist in the16
business enterprise and that is filled by a person who is a citizen of the United States17
and who is domiciled in Louisiana, or who is a citizen of the United States and18
becomes domiciled in Louisiana within sixty days after his employment in such19
position, performing duties in connection with the operation of the business20 HLS 13RS-1146 ORIGINAL
HB NO. 668
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enterprise either as a regular, full-time employee or as a part-time employee1
employed for at least twenty hours per week for at least six months during the2
taxable year. The total number of credits allowed to a business enterprise for3
employees who are citizens of the United States and who become domiciled in4
Louisiana within sixty days after employment shall not exceed fifty percent of the5
total number of credits allowed to the business enterprise under the contract.6
B. The board may enter into the contracts provided in Subsection A of this7
Section provided that:8
* * *9
(3) The business certifies that at least thirty-five percent of its employees:10
(a) Are residents of either:11
(i) Any enterprise zone in Louisiana for a business located in an urban12
enterprise zone, or a business not located in either an enterprise zone or an economic13
development zone.14
(ii) The same parish as the location of the business, or any enterprise zone15
in Louisiana, for a business located in a rural enterprise zone, an economic16
development zone, or an enterprise zone in Calcasieu Parish.17
(b) Were receiving some form of public assistance prior to employment.18
(c) Were considered unemployable by traditional standards, or lacking in19
basic skills.20
If the business is located within an enterprise zone, the business certifies that21
any combination of the following criteria are met with respect to at least thirty-five22
percent of its employees:23
(i) Are residents of an enterprise zone.24
(ii) Prior to employment they were receiving some form of public assistance.25
(iii) Prior to employment they were considered unemployable by traditional26
standards, or were lacking basic skills necessary to gain employment.27
(iv) Have a felony conviction.28 HLS 13RS-1146 ORIGINAL
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(b) If the business is located outside of an enterprise zone, the business1
certifies that any combination of the criteria established in Subparagraph (a) of this2
Paragraph are met with respect to at least fifty percent of its employees.3
(d) Any combination of the above. (c) Such certification shall be updated4
annually if the business is to continue receiving the benefits of this Chapter.5
* * *6
(6) A retail business, as defined by the Department of Economic7
Development, which has more than one hundred employees nationwide including8
affiliates prior to the contract effective date are ineligible to participate in the9
program unless they are a grocery store or pharmacy, as those entities shall be10
defined by rule of the department, and are located within an enterprise zone.11
(7) Beginning January 1, 2014, there shall be a limit on the number of12
contracts with specific businesses which are not located in an enterprise zone. In13
any calendar year the total contracts with such businesses shall constitute no more14
than ten percent of the total number of contracts awarded in that year.15
* * *16
Section 2. The provisions of this Act shall apply only to those contracts executed17
after the effective date of this Act. 18
Section 3. This Act shall become effective upon signature by the governor or, if not19
signed by the governor, upon expiration of the time for bills to become law without signature20
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21
vetoed by the governor and subsequently approved by the legislature, this Act shall become22
effective on the day following such approval.23
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 HLS 13RS-1146 ORIGINAL
HB NO. 668
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are additions.
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))