RÉSUMÉ DIGEST
ACT 126 (HB 635) 2015 Regular Session Jackson
ENTERPRISE ZONE (EFFECTIVE JULY 1, 2015)
Existing law (R.S. 51:1787) establishes the enterprise zone program through which
businesses may enter into contracts with the Board of Commerce and Industry to receive
income tax credits or sales and use tax rebate payments in exchange for the creation of a
certain number of jobs that involve employees who meet certain residency and other
requirements.
Prior law limited eligibility for retail businesses assigned a North American Industry
Classification (NAICS) Code of 44 or 45 with more than 100 employees nationwide,
including affiliates, to grocery stores and pharmacies located in an enterprise zone.
New law prohibits eligibility of a business with NAICS Code of 44, 45, or 722 from
receiving benefits pursuant to existing law for projects whose contract is not entered into
before July 1, 2015, unless an advance notification for the project was filed prior to July 1,
2015, and the related claim for benefits is filed on or after July 1, 2016.
New law shall supercede the provisions of the Act that originated as House Bill No. 466 of
this 2015 Regular Session, regardless of the order of final passage.
REBATE REDUCTIONS F OR STATE REBATE PROGRAMS
(EFFECTIVE JULY 1, 2015 THROUGH JUNE 30, 2018)
Existing law (R.S. 51:2367) 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
to certain mega-projects when the secretary has determined that the consumption of energy
will be a major cost component of the operation of the project.
Prior law provided for a 100% rebate of La. severance taxes paid on natural gas.
New law reduces the amount of the rebate from 100% to 80% of La. severance taxes that
were paid to the state on those projects for which the secretary makes a determination on or
after July 1, 2015, and on or before June 30, 2018.
Existing law (R.S. 51:2455) provides for the Quality Jobs Program, which 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.
Prior law authorized a rebate equal to the benefit rate as defined in existing law multiplied
by 100% of the gross payroll of new direct jobs.
New law reduces the amount of gross payroll of new direct jobs used in the calculation of
the rebate from 100% to 80% of the gross payroll of new direct jobs for projects for which
an advanced notification is filed on or after July 1, 2015, and on or before June 30, 2018.
New law limits the period of time within which an application for a Quality Jobs project is
required to be filed to no later than 24 months after the filing of an advance notification for
the project. Requires applications for advance notifications filed between July 1, 2011 and
July 1, 2012 to be filed at any time prior to August 15, 2015.
Existing law (R.S. 51:3114) creates the Corporate Headquarters Relocation Program, which
grants to a "qualified business" a contract to receive a relocation rebate to relocate or expand
its "headquarters" in La.
Prior law authorized a rebate of 25% of "relocation costs".
Page 1 of 2 New law reduces the amount of the rebate from 25% to 20% of "relocation costs for projects
for which an advance notification was filed on or after July 1, 2015, and on or before June
30, 2018.
Existing law (R.S. 51:3121) 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 rebate based on the amount of new payroll, a sales and use taxes rebate
for taxes paid, and a rebate equal to a percentage of the amount of certain qualified capital
expenditures associated with a facility utilized in the performance of the contract.
Prior law authorized a rebate of 1.5% of the amount of certain qualified capital expenditures
and up to 15% of eligible new payroll.
New law reduces the amount of the rebates from 1.5% to 1.2% of certain qualified capital
expenditures and from a maximum of 15% to 12% of eligible new payroll. New law is
applicable to those projects for which an invitation to apply is extended by the secretary on
or after July 1, 2015, and on or before June 30, 2018.
SUNSET OF REBATE REDUCTIONS (EF FECTIVE JULY 1, 2018)
The reductions to the amount of rebates in new law sunsets on June 30, 2018. For those
projects for which the secretary makes a determination relative to energy consumption of
mega-projects, or an advance notification is filed, or an invitation to apply is extended by the
secretary on or after July 1, 2018, the amount of the respective rebates in prior law shall be
applicable to those projects.
(Amends R.S. 51:1787(B)(3)(b), 2455(A), 3114(B), and 3121(C)(3)(b)(i) and(4)(c); Adds
R.S. 51:2367(E) and 2455(D)(3))
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