Louisiana House Bill HB749

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15
• Report Pass: 5/19/15
• Engrossed: 6/1/15
• Report Pass: 6/5/15
• Enrolled: 6/8/15
• Chaptered: 6/29/15
• Passed: 6/29/15

Caption

Requires the review of tax credits (EN NO IMPACT GF RV See Note)

Impact

The introduction of HB 749 aims to bring greater accountability and oversight to Louisiana's tax credit system. By implementing a structured review process, the state legislature seeks to ensure that tax incentives align with fiscal prudence and maximize economic returns for Louisiana. This bill is particularly significant as it influences various sectors that benefit from tax credits, potentially reshaping the economic landscape of the state if certain credits are eliminated or modified based on the reviews.

Summary

House Bill 749 requires a comprehensive review of certain tax credits in Louisiana, focusing on their economic impact versus the revenue losses incurred by the state. This bill mandates that the House Committee on Ways and Means, along with the Senate Committee on Revenue and Fiscal Affairs, assess the effectiveness and fiscal implications of these tax credits. Furthermore, it sets a timeline for these committees to report back their findings and recommendations, which includes potentially maintaining or terminating specific credits based on their evaluated economic benefits.

Sentiment

Overall, the sentiment around HB 749 appears to be cautious yet optimistic. Proponents highlight the necessity for rigorous evaluation to prevent the misuse of taxpayer funds and to ensure that tax credits serve their intended purpose of stimulating economic growth. However, there is also wariness among some stakeholders about the potential repercussions of eliminating or modifying existing tax credits, especially if they form a crucial part of business strategies or employment development.

Contention

Noteworthy contention surrounding HB 749 revolves around the balance between fiscal responsibility and promoting economic growth. While many legislators and economic analysts support a review process to scrutinize tax credits, certain businesses and advocacy groups express concerns that such reviews may place undue stress on beneficial programs that foster local job creation and investment. The debates reflect a broader conflict between ensuring financial accountability for the state's fiscal health and maintaining strong incentives to attract and retain businesses.