Louisiana Senate Bill SB257

Louisiana 2013 Regular Session

• Introduced: 4/17/13
• Refer: 4/18/13

Caption

Provides for modifications of enterprise zone contracts with respect to tax credits granted. (7/1/13) (OR INCREASE GF RV See Note)

Impact

The implementation of SB257 is set to impact state laws pertaining to tax incentives significantly. By amending criteria for enterprise zone contracts, it places a stronger emphasis on hiring from local impoverished communities, aiding both job retention and employment within those zones. For instance, businesses will need to ensure that a minimum percentage of net new hires reside in an enterprise zone, broadening the potential benefits from these contracts while raising accountability for businesses in delivering socio-economic advantages.

Summary

Senate Bill 257 modifies existing laws regarding enterprise zone contracts related to tax credits. Specifically, it alters the qualification criteria for businesses seeking tax incentives when hiring new employees. This bill aims to stimulate job creation by providing tax credits to businesses that meet the defined criteria while ensuring that the benefits are directed towards ensuring that at least a portion of new employees come from designated areas of economic need.

Sentiment

The overall sentiment surrounding SB257 appears largely supportive among proponents who view it as a necessary step toward enhancing employment opportunities within underprivileged areas. Critics, however, may express concerns about the enforcement of the regulations and how efficiently these tax credits translate into actual job creation. The balance between incentivizing business expansion and ensuring genuine community benefits remains a critical focus.

Contention

Notable points of contention arise concerning the limits on enterprise zone participation, especially for larger retail businesses with more than 100 employees nationwide. This restriction intends to prioritize smaller, community-focused enterprises but might draw criticism regarding its potential to alienate larger employers who may also wish to contribute to local economic growth. The bill's potential effectiveness hinges on the execution of these measures and the feedback loop established between businesses and the communities they are supposed to serve.