HLS 15RS-1221 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 589
BY REPRESENTATIVE BURRELL
TAX CREDITS: Establishes criteria for participation in the enterprise zone program for the
receipt of tax credits and rebate payments
1 AN ACT
2To amend and reenact R.S. 51:1787(A)(3) and (B)(3), relative to incentives for businesses;
3 to provide with respect to the enterprise zone program; to provide for requirements
4 for contracts to receive tax credits and rebate payments; to provide for applicability;
5 and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 51:1787(A)(3) and (B)(3) are hereby amended and reenacted to read
8as follows:
9 ยง1787. Incentives
10 A. The board, after consultation with the secretaries of the Department of
11 Economic Development and Department of Revenue, and with the approval of the
12 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 be
15 applicable only to a position within the state that did not previously exist in the
16 business enterprise and that is filled by a person who is a citizen of the United States
17 and who is domiciled in Louisiana, or who is a citizen of the United States and
18 becomes domiciled in Louisiana within sixty days after his employment in such
19 position, performing duties in connection with the operation of the business
20 enterprise as a regular, full-time employee for at least six months during the taxable
21 year. The total number of credits allowed to a business enterprise for employees
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HB NO. 589
1 who are citizens of the United States and who become domiciled in Louisiana within
2 sixty days after employment shall not exceed fifty percent of the total number of
3 credits allowed to the business enterprise under the contract.
4 B. The board may enter into the contracts provided in Subsection A of this
5 Section provided that:
6 * * *
7 (3)(a) The business certifies that at least fifty percent of its employees meet
8 at least one of the following qualifications:
9 (i) Are residents of either:
10 (aa) Any enterprise zone in Louisiana, for a business located in an urban
11 enterprise zone or a business not located in either an enterprise zone or an economic
12 development zone.
13 (bb) The same parish as the location of the business, or any enterprise zone
14 in Louisiana, for a business located in a rural enterprise zone, an economic
15 development zone, or an enterprise zone in Calcasieu Parish.
16 (ii) Were receiving some form of public assistance during the six-month
17 period prior to employment.
18 (iii) Were considered unemployable by traditional standards, or lacking in
19 basic skills.
20 If the business is located within an enterprise zone, economic development
21 zone, or federal HUBZone, the business certifies that any combination of the
22 following criteria are met with respect to at least thirty-five 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 traditional
26 standards, or were lacking basic skills necessary to gain employment.
27 (iv) have a felony conviction.
28 (b) If the business is located outside of an enterprise zone, economic
29 development zone, or federal HUBZone, the business certifies that any combination
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HB NO. 589
1 of the criteria established in Subparagraph (a) of this Paragraph are met with respect
2 to at least fifty percent of its employees.
3 (b)(c) In addition to the requirements of Subparagraph (a) of this Paragraph,
4 eligibility for a retail business which is assigned a North American Industry
5 Classification Code of 44 or 45 and has more than one hundred employees
6 nationwide including affiliates prior to the contract effective date shall be limited to
7 grocery stores and pharmacies located in an enterprise zone, as such terms are
8 defined by the department by rules promulgated in accordance with the
9 Administrative Procedure Act.
10 (c)(d) The certifications required by Subparagraph (a) of this Paragraph shall
11 be updated annually if the business is to continue receiving the benefits of this
12 Chapter.
13 * * *
14 Section 2. The provisions of this Act shall apply only to those contracts executed
15after the effective date of this Act.
16 Section 3. This Act shall become effective upon signature by the governor or, if not
17signed by the governor, upon expiration of the time for bills to become law without signature
18by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
19vetoed by the governor and subsequently approved by the legislature, this Act shall become
20effective on the day following such approval.
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 589 Original 2015 Regular Session Burrell
Abstract: Changes eligibility requirements for enterprise zone contracts to receive tax
credits and rebate payments.
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 and rebate payments in exchange for the creation of a certain number of jobs which
involve employees who meet certain residency and other requirements.
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HB NO. 589
Present law authorizes that jobs for full-time work may satisfy the job requirements of an
enterprise zone contract with present law specifying that the employee must work at least
6 months during the taxable year.
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 50% 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,
economic development zone, or federal HUBZone, the business must certify that any
combination of certain criteria are met with respect to at least 35% of its employees.
Proposed law provides that if the business is located outside an enterprise zone, economic
development zone, or federal HUBZone, the business must certify that any combination of
certain criteria are met with respect to at least 50% of its employees.
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))
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