Repeals the three-year sunset of certain reductions to income and corporation franchise tax credits (Item #10) (EN NO IMPACT GF RV See Note)
Impact
By extending the sunset provisions of the tax credits established in Act No. 125 from the 2015 Regular Session, HB 24 effectively allows for sustained financial incentives for infrastructure projects within the arts. This could have a significant impact on local economies by facilitating job creation in the arts sector, as well as improving educational infrastructures for arts programs at higher education institutions. The ongoing support for tax credits is expected to foster an environment conducive to the growth of the performing arts in Louisiana.
Summary
House Bill 24 proposes to repeal the three-year sunset on certain reductions to income and corporation franchise tax credits related to the performance of state-certified musical and theatrical productions. The bill aims to extend the timeline for tax benefits associated with investments in higher education musical or theatrical facilities, thereby encouraging more significant local and state investment in these sectors. This continues the state's support for the arts and creative industries, which is seen as vital for cultural development and economic growth.
Sentiment
The general sentiment surrounding HB 24 appears to be favorable among stakeholders involved in arts and education. Legislators and advocates for the arts view this bill as a positive step in maintaining and expanding the support for theatrical and musical productions. Nevertheless, there may be some budgetary concerns raised by those wary of financial implications for the state’s overall fiscal health, which could lead to debate regarding the appropriateness of prolonging these tax credits.
Contention
One notable point of contention may arise from the debate over whether extending these tax credits is the best use of state resources. Critics could argue that funds allocated to tax credits for theatrical and musical productions might be redirected to other areas in need of financial support, such as public education or infrastructure. The bill's supporters will need to effectively address these arguments to gain broader acceptance within the state legislature and among constituents.
Removes the June 30, 2018, sunset provision and makes permanent reductions to certain income and corporation franchise tax credits. (gov sig) (EN +$12,500,000 GF RV See Note)
Amends Act No. 125 of the 2015 Regular Session of the Legislature to provide relative to income and corporation franchise tax credits (Item #10) (OR INCREASE GF RV See Note)
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)
Levies a flat corporate income tax, repeals the corporation franchise tax, repeals deductibility of federal income taxes paid, and terminates certain income tax credits (OR DECREASE GF RV See Note)
Provides for an annual cap and a termination date for the musical and theatrical production income tax credit. (7/1/17) (EN SEE FISC NOTE GF RV See Note)
Provides relative to tax credits for state-certified musical or theatrical productions and state-certified infrastructure projects (OR DECREASE GF RV See Note)