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 Reengrossed 2015 Regular Session Jackson
Abstract: Reduces the amount of certain rebates by 20%.
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, with respect to those projects for which the secretary makes
a determination on or after July 1, 2015, that the consumption of energy will be a major cost
component of the operation of the project, reduces the amount of the rebate from 100% to 80% of
La. severance taxes that were paid to the state.
Present law provides for the Quality Jobs Program, which program authorizes the granting of
contracts by the Board of Commerce and Industry to businesses for the purposes of providing rebates
and tax credits for the achievement of certain performance by the business. The term of the contract
is five years. Authorizes a rebate equal to the benefit rate as defined in present law multiplied by the
gross payroll of new direct jobs.
Proposed law retains present law but, with respect to projects for which an advance notice was filed
on or after July 1, 2015, reduces the rebate to an amount not to exceed the amount of the benefit rate
multiplied by 80% of the gross payroll of new direct jobs.
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, with respect to those projects for which an advance notification
was filed on or after July 1, 2015, reduces the amount of the rebate from 25% to 20% of "relocation
costs".
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, with respect to those projects for which an invitation to apply
is extended by the secretary on or after July 1, 2015, 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. 51:2455(A), 3114(B), and 3121(C)(3)(b)(i) and(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.
The House Floor Amendments to the engrossed bill:
1. Delete provisions relative to Enterprise Zone Incentives.
2. With respect to the La. Mega-Project Energy Assistance Rebate, change the applicability
of the reduced rebate from those project contracts entered into on or after July 1, 2015
to those projects for which the secretary makes a determination on or after July 1, 2015,
that the consumption of energy will be a major cost component of the operation of the
project.
3. With respect to the La. Quality Jobs Program and the Corporate Headquarters Relocation
Program, change the applicability of the reduced rebate from those project contracts
entered into on or after July 1, 2015 to those projects for which an advance notification
was filed on or after July 1, 2015.
4. With respect to the Competitive Projects Payroll Incentive program, change the
applicability of the reduced rebate from those project contracts entered into on or after
July 1, 2015 to those projects for which an invitation to apply is extended by the secretary
on or after July 1, 2015.