HLS 16RS-2098 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 1067
BY REPRESENTATIVE SCHRODER
TAX EXEMPTIONS: Requires the appropriation of certain tax expenditures beginning in
Fiscal Year 2017-2018
1 AN ACT
2To amend and reenact R.S. 39:51(E) and (F) and to enact R.S. 39:34(F) and 51(G) and R.S.
3 47:1675(K), relative to certain tax expenditure programs; to require the appropriation
4 of certain income tax expenditure programs under certain circumstances; to provide
5 for definitions; to provide for the appropriation of certain tax expenditures in the
6 General Appropriation Bill and the executive budget; to provide for certain
7 limitations; to provide for applicability; to provide for an effective date; and to
8 provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 39:51(E) and (F) are hereby amended and reenacted and R.S.
1139:34(F) and 51(G) are hereby enacted to read as follows:
12 §34. Executive budget
13 * * *
14 F. Beginning in Fiscal Year 2017-2018, the executive budget shall contain
15 an appropriation for each income tax expenditure program administered by the state.
16 The amount for each income tax expenditure program shall be listed in the same
17 section of the executive budget as the budget recommendation of the agency that
18 grants or administers the tax exemption program. In this Section, "income tax
19 expenditure program" shall mean each income tax credit and each income tax rebate
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HB NO. 1067
1 authorized pursuant to Title 47 and Title 51 of the Louisiana Revised Statutes of
2 1950, as amended.
3 * * *
4 §51. General Appropriation Bill; other appropriation bills
5 * * *
6 E. Beginning in Fiscal Year 2017-2018, the General Appropriation Bill shall
7 contain appropriations for each income tax expenditure program. The appropriated
8 amount for each income tax expenditure program shall be listed in the same section
9 of the bill as the appropriations for each agency and its programs for the ordinary
10 operating expenses of the agency that grants or administers the income tax
11 expenditure program. In this Section, "income tax expenditure program" shall mean
12 each income tax credit and each income tax rebate authorized pursuant to Title 47
13 and Title 51 of the Louisiana Revised Statutes of 1950, as amended.
14 F. The Five Year Estimated Revenue Loss Chart from the most recent Tax
15 Exemption Budget prepared by the Department of Revenue shall be an appendix to
16 the General Appropriation Bill. The Joint Legislative Committee on the Budget shall
17 annually review and evaluate the Five Year Estimated Revenue Loss Chart.
18 F. G. Any appropriation bill in which a reduction in an appropriation is
19 authorized shall designate the reduction by placing parenthesis around the amount.
20 Section 2. R.S. 47:1675(K) is hereby enacted to read as follows:
21 §1675. General administrative provisions for credits against income and corporation
22 franchise tax; limitations on tax credits and rebates
23 * * *
24 K. Income tax credits and income tax rebates limited to appropriated amount.
25 The total amount of any income tax credit or income tax rebate granted by the
26 Department of Revenue, the Department of Economic Development, or any other
27 state agency which administers a tax credit or rebate shall not exceed the amount
28 appropriated for each income tax credit or rebate in the General Appropriation Bill
29 for each fiscal year. Any department administering the provisions of an income tax
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HB NO. 1067
1 credit or rebate shall by rule, promulgated in cooperation with the Department of
2 Revenue and in accordance with the Administrative Procedure Act, establish the
3 method of allocating available income tax credits and rebates including but not
4 limited to a first-come, first-served system, reservation of tax credits and tax rebates
5 for a specific time period, or other method which the department administering the
6 provisions, in its discretion, may find beneficial to the program.
7 Section 2. Any incentive expenditure as defined in R.S. 39:2(15.1) in which a
8periodic program evaluation and a coterminous periodic program sunset are established prior
9to the commencement of the 2018 Regular Session of the Legislature shall not be subject to
10the appropriation requirement established pursuant to Section 1 of this Act. The program
11evaluation for these incentive expenditures shall be conducted not less than once every five
12years.
13 Section 3. This Act shall become effective upon signature by the governor or, if not
14signed by the governor, upon expiration of the time for bills to become law without signature
15by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
16vetoed by the governor and subsequently approved by the legislature, this Act shall become
17effective on the day following such approval.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 1067 Original 2016 Regular Session Schroder
Abstract: Requires certain tax expenditures to be appropriated and limits the amount of
each tax credit and rebate to the appropriated amount.
Proposed law requires, beginning in FY 17-18, the executive budget and the General
Appropriation Bill to have an appropriation for each income tax expenditure program in the
same section of law as the department that grants or administers the program.
Proposed law defines "income tax expenditure program" as each income tax credit and each
income tax rebate authorized pursuant to present law.
Proposed law limits, beginning in FY 17-18, the amount of each income tax credit or income
tax rebate to the amount appropriated in the General Appropriation Bill for each fiscal year.
Further requires the department administering the provisions of an income tax credit or
income tax rebate to establish by rule, the method of allocating available income tax credits
and rebates.
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HB NO. 1067
Proposed law provides that any incentive expenditure as defined in present law (R.S.
39:2(15.1)) in which a periodic program evaluation and a coterminous periodic program
sunset are established prior to commencement of the 2018 R.S. shall not be subject to the
appropriation requirement established pursuant to proposed law. Proposed law requires the
program evaluation for these incentive expenditures to be conducted not less than once every
five years.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 39:51(E) and (F); Adds R.S. 39:34(F) and 51(G) and R.S. 47:1675(K))
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