The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha S. Hess.
DIGEST
Donahue (SB 543)
Present law provides for the definitions of words used in Title 39 of the Revised Statutes.
Proposed law retains present law and adds the definition of "incentive expenditures" to mean the
reductions of and payments from current tax collections because of the following incentive
benefit statutes:
(a)Atchafalaya Trace Heritage Area Development Zone Tax Exemption (Part II of Chapter
26 of Title 25 of the Revised Statutes, comprised of R.S. 25:1226 et seq.).
(b)Brownsfields Investor Tax Credit (R.S. 47:6021).
(c)Cane River Heritage Tax Credit (R.S. 47:6026).
(d)Louisiana Community Economic Development (R.S. 47:6031).
(e)Ports of Louisiana Tax Credit (R.S. 47:6036).
(f)Motion Picture Investor Tax Credit (R.S. 47:6007).
(g)Research and Development Tax Credit (R.S. 47:6015).
(h)Digital Interactive Media and Software Tax Credit (R.S. 47:6022).
(i)Louisiana Motion Picture Incentive Program (Chapter 12 of Subtitle II of Title 47 of the
Revised Statutes of 1950, comprised of R.S. 47:1121 et seq.).
(j)Louisiana Capital Companies Tax Credit Program (Chapter 26 of Title 51 of the Revised
Statutes of 1950, comprised of R.S. 51:1921 et seq.).
(k)New Markets Tax Credit (R.S. 47:6016).
(l)University Research and Development Parks (R.S. 17:3389).
(m)Industrial Tax Equalization Program (Chapter 1 of Subtitle V of Title 47 of the Revised
Statutes of 1950, comprised of R.S. 47:3201 through 3205).
(n)Exemptions for Manufacturing Establishments (Chapter 3 of Subtitle V of Title 47 of the
Revised Statutes of 1950, comprised of R.S. 47:4301through 4306). (o)Enterprise Zones (Chapter 21 of Title 51 of the Revised Statutes of 1950, comprised of
R.S. 51:1781 et seq.).
(p)Sound Recording Investor Tax Credit (R.S. 47:6023).
(q)Urban Revitalization Tax Incentive Program (Chapter 22 of Title 51 of the Revised
Statutes of 1950, comprised of R.S. 51:1801).
(r)Technology Commercialization Credit and Jobs Program (Part VI of Chapter 22 of Title
51 of the Revised Statutes of 1950, comprised of R.S. 51:2351 et seq.).
(s)Angel Investor Tax Credit Program (R.S. 47:6020).
(t)Musical and Theatrical Productions Tax Credit (R.S. 47:6034)
(u)Retention and Modernization Credit (Chapter 39-C of Title 51 of the Revised Statutes of
1950, comprised of R.S. 51:2399.1 through 2399.6).
(v)Green Jobs Industries Credit (R.S. 47:6037).
(w)Louisiana Quality Jobs Program (R.S. 51:2451 et seq.).
(x)Corporate Headquarters Relocation Program (Chapter 54 of Title 51 of the Revised
Statutes of 1950, comprised of R.S. 51:3111 through 3115).
(y)Competitive Projects Payroll Incentive Program (R.S. 51:3121).
(z)Procurement Processing Company Rebate Program (R.S. 47:6351).
(aa)Rehabilitation of Historic Structures (R.S. 47:6019).
Proposed law also defines "current tax collections" to mean the current collections of the taxes
imposed by Subtitle II of Title 47 of the La. Revised Statutes of 1950.
Proposed law provides that beginning fiscal year 2015-2016, the Revenue Estimating Conference
shall establish a forecast of incentive expenditures for each fiscal year, which shall include a
forecast of the amount of payments from and reductions of current tax collections to be granted
by each of the incentive benefit statutes listed in the definition of incentive benefit for the
forecasted year. Provides that the forecast shall be an amount that is no less than the estimated
amount of payments from and reductions of current tax collections which will be made by each
of the incentive benefit statutes. Such forecast shall be used to provide for the statement of
incentive expenditure allocations in the proposed executive budget, the general appropriation bill
and other appropriation bills, and the state budget.
Proposed law provides that the incentive expenditure forecast shall be derived and based upon the assumption that the current law and current administrative procedures will remain in effect
for the forecast period. Provides that the department which administers the incentive benefit
shall notify the conference when the incentive expenditure forecast is not sufficient to meet the
requirements of current law or current administrative procedures. The conference may revise the
forecast as necessary. Provides that the incentive expenditure forecast shall be a separate section
in the official forecast and shall not be included in the estimates of the money to be received by
the state general fund and dedicated funds for the current and next fiscal years which are
available for appropriation.
Proposed law provides for the information, and the timing of submission of the information, that
public officers, departments, agencies, and authorities of the state are to provide in order for the
Revenue Estimating Conference to prepare an incentive expenditure forecast.
Proposed law provides that the incentive expenditure forecast shall be determined by the
Revenue Estimating Conference through a process to be decided by the conference except that
any final action establishing an incentive expenditure forecast shall be taken only pursuant to a
unanimous decision by all of the conference principals.
Present law provides that the governor shall cause to be prepared an executive budget presenting
a complete financial and programmatic plan for the ensuing fiscal year which shall include
recommendations for appropriations from the state general fund and dedicated funds which shall
not exceed the official forecast of the Revenue Estimating Conference.
Proposed law retains present law and further provides that the executive budget for Fiscal Year
2015-2016 and each fiscal year thereafter shall include a statement of incentive expenditures as
contained in the incentive expenditure forecast. The incentive expenditures allocations shall be
stated as a separate description in the program activities of the respective department, agency, or
authority of the state which administers an incentive expenditure. A statement of total incentive
expenditure allocations shall also be provided in the executive budget proposal. Such incentive
expenditures shall not be included as, nor counted towards the operating expenses of the relevant
department, agency, or authority.
Present law provides for the contents and format of executive budget.
Proposed law retains present law and further provides that the executive budget shall contain a
statement of incentive expenditures as contained in the incentive expenditure forecast. The
incentive expenditures allocations shall be stated as a separate description in the program
activities of the respective department, agency, or authority of the state which administers an
incentive expenditure. A statement of total incentive expenditure allocations shall also be
provided in the executive budget proposal. Such incentive expenditures shall not be included as,
nor counted towards the operating expenses of the relevant department, agency, or authority.
Present law provides relative to the general appropriation bill and provides that the general
appropriation bill and other appropriation bills shall not appropriate any funds, which are not part
of the official forecast except appropriations from existing statutorily dedicated funds for purposes other than the fund's statutory purpose as provided in present law.
Proposed law retains present law and further provides that the General Appropriation Bill and
other appropriation bills shall include a statement of incentive expenditure allocations as
contained in the incentive expenditure forecast. The incentive expenditures allocations shall be
stated as a separate description in the program activities of the respective department, agency, or
authority of the state which administers an incentive expenditure. Such incentive expenditures
shall not be included as, nor counted towards the operating expenses of the relevant department,
agency, or authority. The statement of incentive expenditure allocations shall not be deemed to
be an appropriation.
Present law provides that after the passage of the appropriation and revenue acts, but not later
than October first of each year, the governor shall cause to be prepared a complete state budget
for the fiscal year. The budget so prepared shall include all the details of the financial plan for the
fiscal year, as to both expenditures and means of financing as presented in the executive budget,
with such revision as may be necessary to bring them into conformity with the appropriation and
revenue acts and other acts to provide means of financing, and with the legislative provisions in
effect, governing administration of the budget.
Proposed law retains present law but further provides that the budget so prepared for FY 2015-
2016 and each fiscal year thereafter shall include a statement of total incentive expenditure
allocations and a statement of incentive expenditure allocations by department.
Effective July 1, 2014.
(Amends R.S. 39:34(A) and 56(A); adds R.S. 39:2(15.1) and (15.2), 24.1, 36(A)(7), and
51(A)(5))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original bill
1. Deletes definition of "expenditures for payments to businesses and individuals
and adds definition of "incentive expenditures" and "current tax collections".
2. Removes provisions relative to the official forecast of the Revenue Estimating
Conference.
3. Provides for an incentive expenditure forecast of the Revenue Estimating
Conference and the procedures relating to same.
4. Removes provisions relative to appropriations for expenditures for payments to
businesses and individuals in amounts not to exceed the official forecast for
expenditures for payments to businesses and individuals in the executive budget, the General Appropriation Bill and other appropriation bills, and the state budget.
5. Provides for statements of incentive expenditure allocations as contained in the
incentive expenditure forecast in the executive budget, the General Appropriation
Bill and other appropriation bills, and the state budget.