Louisiana Senate Bill SB168

Louisiana 2015 Regular Session

• Introduced: 4/2/15
• Refer: 4/2/15
• Refer: 4/13/15

Caption

Provides for a swap of refundable tax credits by establishing a system to terminate certain existing exemptions, exclusions, deductions, and credits to fund refundable credits for donations to higher education and health care. (7/1/15)

Impact

The proposed legislation could significantly impact Louisiana's tax structure by reallocating financial resources towards higher education and healthcare. By terminating certain low-priority tax exemptions, the state aims to create a more favorable environment for donations aimed at addressing the pressing needs in these critical areas. This could lead to increased financial support for institutions that are often reliant on state funding and philanthropic contributions, ultimately fostering improvements in education and health services within Louisiana.

Summary

Senate Bill 168, introduced by Senator Heitmeier, proposes a system of refundable tax credits for individuals and corporations making donations to public post-secondary educational institutions and the Louisiana Department of Health and Hospitals. This legislation aims to enhance funding for these sectors by offering a 100% tax credit on eligible donations. Additionally, the bill outlines a framework for implementing these credits while emphasizing the requirement for revenue neutrality, which necessitates cutting existing tax exemptions to facilitate these new credits. The provisions of the bill are proposed to become effective on July 1, 2015.

Sentiment

The sentiment around SB 168 reflects a proactive approach to supporting important sectors through fiscal incentives, although concerns may arise regarding the termination of existing tax exemptions. Advocates argue that boosting funding for higher education and health services is essential for Louisiana's growth and development, while critics may be wary of how these changes may affect other sectors that benefit from the current tax exemptions. The debate embodies a broader conflict over budget reallocations in a landscape where financial resources are continually scrutinized.

Contention

Key points of contention in the discussions surrounding SB 168 include the criteria for determining which tax exemptions to eliminate in order to maintain balance within the state's budget. Stakeholders are concerned about the potential loss of critical exemptions that serve various sectors, particularly if the criteria for 'low-priority' exemptions could inadvertently harm local businesses or community services. The oversight process for implementing the changes also raises questions about the transparency and fairness of how decisions will be made regarding existing tax structures.