Louisiana House Bill HB629

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15
• Report Pass: 5/5/15
• Engrossed: 5/11/15
• Refer: 5/12/15
• Report Pass: 5/18/15
• Refer: 5/19/15
• Report Pass: 6/3/15
• Enrolled: 6/11/15
• Chaptered: 6/19/15
• Passed: 6/19/15

Caption

Reduces income and corporation franchise tax credits (EN +$31,500,000 GF RV See Note)

Impact

The bill amends several statutes to provide a framework for tax credits associated with investments in state-certified projects. Notably, it establishes credits specifically for green projects, allowing companies to earn significant tax reductions based on their investments in environmentally friendly practices. It also ensures that job creation is tied to local hiring, thereby aiming to empower communities economically. However, the specifics around implementation and the impact on overall state tax revenues remain key points for analysts as the bill is rolled out.

Summary

House Bill 629 focuses on various tax incentives in Louisiana, primarily aimed at stimulating economic growth through community investment and infrastructure development. This bill modifies existing tax credits and introduces new provisions aimed at encouraging investments in state-certified productions, sound recordings, and green projects. The legislation's intent is to bolster Louisiana's economy by incentivizing businesses to invest locally, thus creating more job opportunities and enhancing the state's attractiveness as a destination for various industries.

Sentiment

The response to HB 629 has been generally supportive, especially among business owners and economic developers, who perceive the tax credits as a means to stimulate economic activity in the state. Supporters argue that this measure will help counteract economic stagnation by fostering a climate where businesses can thrive. Conversely, some critics worry that the concentration on tax credits could divert state funds from essential services and that the efficacy of such incentives in delivering long-term economic growth may be overstated.

Contention

One of the most significant points of contention regarding HB 629 centers on the allocation and effectiveness of the proposed tax credits. Opponents argue that while the bill promotes investment, it may not adequately consider the needs of local communities that could be overlooked in favor of large-scale businesses. Additionally, the focus on tax incentives raises concerns about potential budget cuts to essential services, which could occur if the state loses substantial tax revenue through credits. Consequently, balancing the need for economic incentives without undermining state funding for critical services is a crucial discussion point.