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 635 Engrossed 2015 Regular Session Jackson
Abstract: Reduces the amount of certain rebates by 20%.
Present law establishes the Enterprise Zone Program which provides for tax credits and rebates for
eligible businesses based on numbers of jobs, and provides for specific eligibility criteria with
respect to employees for jobs that are eligible for program benefits.
Proposed law retains present law but prohibits the rebate amount provided for in the contract from
exceeding 80% of the total of the actual amount of the sales and use taxes paid for contracts entered
into on or after July 1, 2015.
Present law authorizes the secretary of the Dept. of Economic Development to grant a La. Mega
Project Energy Assistance Rebate of severance taxes paid on natural gas consumed or used directly
in the operation of the mega-project facility or consumed indirectly in the manufacture or creation
of energy sold to the mega-project facility for its operation.
Proposed law retains present law but reduces the amount of the rebate from 100% to 80% of La.
severance taxes that were paid to the state for cooperative endeavor agreements entered into or after
July 1, 2015.
Present law creates the Corporate Headquarters Relocation Program which grants to a "qualified
business" a contract to receive a relocation rebate of 25% of "relocation costs" to relocate or expand
its "headquarters" in La.
Proposed law retains present law but reduces the amount of the rebate from 25% to 20% of
"relocation costs" for contracts entered into after July 1, 2015.
Present law establishes the Competitive Projects Payroll Incentive Program through which
businesses can contract with the Dept. of Economic Development for receipt of rebate payments in
exchange for the creation of jobs. The contract provides for three different rebates: a payment based
on the amount of new payroll, a sales and use taxes rebate for taxes paid, and a payment equal to
1.5% of the amount of certain qualified capital expenditures associated with a facility utilized in the
performance of the contract.
Proposed law retains present law but reduces the amount of the rebate from 1.5% to 1.2% of certain
qualified capital expenditures. Further reduces the amount of the credit from a maximum of 15%
to 12% of new payroll. Effective July 1, 2015.
(Amends R.S. 51:1787(A)(1)(a)(ii), 2455(A), 3114(B), and 3121(C)(3)(b)(i) and (C)(4)(c); Adds
R.S. 51:2367(E))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Delete the provisions relative to the rebate for donations to school tuition organizations
as provided and the provisions relative to the rebate for state sales and use tax for certain
procurement processing companies.