HLS 15RS-1322 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 556
BY REPRESENTATIVE BURRELL
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX CREDITS: Provides relative to the Urban Revitalization Tax Incentive Program
1 AN ACT
2To amend and reenact R.S. 51:1803(3), (4), and (5)(b), 1805(4), 1806(2) and (3), and
3 1807(B)(1), (2), and (3) and (C), (D), and (E) and to repeal R.S. 51:1804, relative to
4 tax credits; to provide for the Urban Revitalization Tax Incentive Program; to
5 provide for definitions; to provide requirements for local governing authorities; to
6 provide requirements of businesses seeking tax credits; to provide for effectiveness;
7 and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 51:1803(3), (4), and (5)(b), 1805(4), 1806(2) and (3), and
101807(B)(1), (2), and (3) and (C), (D), and (E) are hereby amended and reenacted to read as
11follows:
12 §1803. Definitions
13 For purposes of this Chapter, the following terms shall have the meaning
14 hereinafter ascribed to them, unless the context clearly indicates otherwise:
15 * * *
16 (3) "Governing authority" means the governing body of a parish or
17 municipality within which a qualified United States Census Department Division lies
18 census tract is located.
19 (4) "Qualified United States census tract" or "part of a qualified census tract"
20 means a census tract which has been deemed by a federal agency, the department,
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1 and the governing authority in which it is located to be that is in need of
2 revitalization and has been designated by the department and governing authority of
3 the respective parish as being so in need based on a high rate of poverty and a low
4 median household income level.
5 (5) "Revitalization zone" means either:
6 * * *
7 (b) A qualified United States census tract or a part of a qualified census tract
8 which is adjacent to a HUB Zone.
9 * * *
10 §1805. Designation
11 The department shall designate urban revitalization zones only after receiving
12 notice from the appropriate governing authority that the governing authority agrees
13 to:
14 * * *
15 (4) Authorize the department to supersede certain specified Revise or repeal
16 any local regulations and ordinances which may serve to discourage economic
17 development within the revitalization zone.
18 * * *
19 §1806. Duties of the department
20 The department shall administer the provisions of this Chapter and shall have
21 the following powers and duties in addition to those mentioned elsewhere in this
22 Chapter and in other laws of this state:
23 * * *
24 (2) To assist the governing authority of an urban revitalization zone in
25 obtaining assistance from the federal government, including the suspension of
26 federal regulations within the zone.
27 (3) To assist the governing authority of an urban revitalization zone in
28 obtaining assistance from any other department of state government, including
29 assistance in providing training, technical assistance, and wage subsidies such as
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1 those provided through federal job training programs to new and existing businesses
2 and small businesses within an urban revitalization zone.
3 * * *
4 §1807. Incentives
5 * * *
6 B. The board may enter into the contracts a contract with a business as
7 provided in Subsection A of this Section provided that the business meets all of the
8 following criteria:
9 (1) The business enterprise and its contractors shall give preference and
10 priority to Louisiana business enterprise businesses and, in the absence of a
11 Louisiana business enterprise, to Louisiana suppliers, contractors, and labor, except
12 where not reasonably possible to do so without added expense, substantial
13 inconvenience, or sacrifice in operational efficiency.
14 (2) The request for such exemption recognition as a business located in a
15 revitalization zone is accompanied by an endorsement resolution approved by the
16 governing body of the appropriate municipality, parish, port district, or industrial
17 development board in whose jurisdiction the establishment is to be located.
18 (3) The business is or shall be located within the boundaries of an urban a
19 revitalization zone.
20 * * *
21 C. The board, after consultation with the secretaries of the Department of
22 Economic Development and the Department of Revenue and with the approval of the
23 governor, may enter into contracts to provide for a five thousand dollar tax credit per
24 net new employee as determined by the company's average annual employment
25 reported under the Louisiana Employment Security Law. A tax credit may only be
26 awarded if the business has no outstanding tax liability to the state or any local
27 taxing authority. This tax credit may be applied to any state income tax liability or
28 any state franchise tax liability and shall be used for the taxable year in which the
29 increase in average annual employment occurred. However, if the entire credit
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1 cannot be used in the year earned, the excess of the credit over the aggregate tax
2 liabilities against which the credit can be applied shall constitute an overpayment,
3 as defined in R.S. 47:1621(A), and the secretary shall make a refund of such
4 overpayment from the current collections of the taxes imposed by Chapter 1 and
5 Chapter 5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, as
6 amended. The right to a refund of any such overpayment shall not be subject to the
7 requirement of R.S. 47:1621(B).
8 D. The department, in cooperation with the Louisiana Workforce
9 Commission, may enter into agreements with employers located in urban
10 revitalization zones under which the employers may receive Workforce Investment
11 Act funds, to the extent that these funds are received from the federal government
12 for specialized training programs.
13 E. Notwithstanding any provision of this Chapter or other law to the
14 contrary, the incentives provided by this Section shall be in lieu of any incentives
15 under the Enterprise Zone Program or the Quality Jobs Program.
16 Section 2. R.S. 51:1804 is hereby repealed in its entirety.
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)]
HB 556 Original 2015 Regular Session Burrell
Abstract: Limits the participation in the Urban Revitalization Tax Incentive Program to
businesses located within a federally designated HUB Zone.
Present law establishes a program for the purpose of stimulating business and industrial
development in depressed areas of the state by providing tax credits to businesses in those
areas.
Present law provides definitions for "qualified census tract" and "revitalization zone".
Proposed law retains present law but changes the definitions of "qualified census tract" and
"revitalization zone".
Present law requires the Dept. of Economic Development (hereinafter department) to
establish criteria for the qualifications of an area as an urban revitalization zone by using
data related to unemployment, per capita income, migration, and number of residents
receiving public assistance.
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Proposed law repeals present law with respect to qualification criteria being determined by
the department.
Present law requires the department to designate an area as an urban revitalization zone if
the governing authority in which the zone is located has agreed to do the following:
(1)Implement a program to provide police protection in the zone.
(2)Prioritize the use of federal funds applicable to activities located within the zone.
(3)Assist the department in certification of employer eligibility.
(4)Authorize the department to supersede local regulations that could discourage
economic development in the zone.
(5)Assist the department in evaluating the progress in the zone.
Proposed law retains present law but places the duty to effect change in local regulations that
could discourage economic development with the local governing authority rather than the
department.
Present law requires that the department administer the program and assist local governing
authorities in obtaining assistance from the federal government and other state departments
for purposes of the program. Further provides that powers and duties of the department
include preparation of an annual report evaluating the effectiveness of the program,
promulgation of rules and regulations, and notification of legislators regarding revitalization
zones located within their districts.
Present law authorizes the State Board of Commerce and Industry (hereinafter "board") to
enter into contracts to provide a $5,000 tax credit per net new employee which may be taken
against state income and corporation franchise taxes. Specifies that a business qualifies for
a contract if the following conditions are met:
(1)Where possible, the business gives preference to other La. businesses in its
contracting.
(2)The business' participation in the program is endorsed by the governing body of the
political subdivision in whose jurisdiction the business is located.
(3)The business is or shall be located within the boundaries of a revitalization zone.
(4)The business located in an urban revitalization zone and receiving the benefits under
the program certifies that at least 35% of its employees:
(a)Are residents of the same or a contiguous revitalization zone as the location
of the business.
(b) Were receiving some form of public assistance prior to employment.
(c) Were considered unemployable by traditional standards.
(d)Any combination of the above. Such certification must be updated annually
if the business is to continue receiving the benefits of the program.
Proposed law clarifies present law.
(Amends R.S. 51:1803(3), (4), and (5)(b), 1805(4), 1806(2) and (3), and 1807(B)(1), (2), and
(3) and (C), (D), and (E); Repeals R.S. 51:1804)
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