LA
Louisiana Senate Bill SB226

Louisiana 2015 Regular Session

Louisiana Senate Bill SB226

Introduced
4/3/15  
Introduced
4/3/15  
Refer
4/3/15  
Refer
4/3/15  
Refer
4/13/15  

Caption

Establishes a baseline limit on all claims against income tax for Digital Interactive Media and Software tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

Impact

The implications of SB 226 on state laws primarily pertain to the administration of tax credits within the digital media sector. By setting a finite limit on these claims, the bill aims to streamline the allocation of tax revenues and ensure fairness in distribution among companies. By mandating that claims are processed on a first-come, first-served basis, the legislation ensures a level of predictability in how tax credits are awarded, potentially benefiting companies that are quick to apply. However, any project seeking certification for these credits would face a cutoff date of June 30, 2021, after which no further certifications would be issued.

Summary

Senate Bill 226 aims to modify the tax credit system for the digital interactive media and software industry in Louisiana. The bill sets a baseline limit of $6 million on all claims against income tax for tax credits pertaining to the digital media and software sector. This change essentially establishes a cap on the total amount of credits that can be claimed in any fiscal year, specifically those filed on a first-come, first-served basis. If claims exceed this cap, the excess may be prioritized in the following fiscal year, allowing companies that were denied credits to secure them later.

Sentiment

The sentiment around SB 226 appears to be mixed, with supporters applauding the effort to stabilize and regulate the digital media tax credit system. Proponents argue that capping the credits encourages a more organized approach to fiscal management and supports the growth of the digital media industry in Louisiana. Conversely, critics may express concern over the limitation on available credits, arguing that it could stifle investment in the industry by discouraging projects that would otherwise benefit from tax incentives.

Contention

Notable points of contention within the discussions surrounding SB 226 center on the balance between government oversight and fiscal responsibility versus the potential for reduced support for the digital media sector. Opponents of the cap may point out the risks of limiting available credits to a system that reduces funding for creative projects, which are essential for economic growth and cultural development. The legislation's implications signify a pivotal point for the future of tax incentives in Louisiana, as the effectiveness of the cap and the first-come, first-served system remains to be seen.

Companion Bills

No companion bills found.

Previously Filed As

LA SB230

Establishes a baseline limit on all claims against income and franchise tax for musical and theatrical production income tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB227

Establishes a baseline limit on all claims against premium tax for new market tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB11

Establishes a baseline limit on all claims against income and franchise tax for musical and theatrical production income tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig) (OR INCREASE GF RV See Note)

LA SB231

Establishes a baseline limit on all claims against income tax for Brownfields Investor Tax Credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB232

Establishes a baseline limit on all claims against income tax for motion picture investor tax credits filed during a fiscal year on a first-come, first-served basis, gives claims above the amount priority in the next fiscal year and provides a termination date for the program. (gov sig)

LA SB225

Establishes a baseline limit on all claims against income and franchise tax for Research and Development tax credits filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB229

Establishes a baseline limit on all claims against income and franchise tax for Angel Investor Tax Credit Program filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB228

Establishes a baseline limit on all claims against state taxes for industrial tax equalization exemptions filed during a fiscal year on a first-come, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig)

LA SB7

Establishes a baseline limit on all claims against income and franchise tax for Angel Investor Tax Credit Program filed during a fiscal year on a first-income, first-served basis and gives claims above the amount priority in the next fiscal year. (gov sig) (OR SEE FISC NOTE GF RV)

LA SB96

Limits all claims against income tax for motion picture investor tax credits filed during each fiscal year to $300 million, but rolls over any remaining balance to future fiscal years. (7/1/15)

Similar Bills

No similar bills found.