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 783 Reengrossed 2016 Regular Session Abramson
Abstract: Provides relative to a sales and use tax rebate and a project facility expense rebate
through the Louisiana Quality Jobs Program and extends the termination date of the program.
Present law provides for the Quality Jobs Program, which authorizes the granting of contracts by the
Board of Commerce and Industry to businesses for the purposes of providing rebates and tax credits
for the achievement of certain performance by the business. The term of the contract is five years.
Authorizes a rebate equal to the benefit rate as defined in present law multiplied by 80% of the gross
payroll of new direct jobs.
Present law entitles employers participating in the Quality Jobs Program to receive the same benefits
authorized through the Enterprise Zone Program.
Proposed law replaces the additional benefits in present law that an employer is entitled to receive
through the Enterprise Zone Program with the following rebates:
(1)A sales and use tax rebate for the purchases of materials used in the construction, addition,
or improvement of a building used to house the business or its equipment.
(2)A project facility expense rebate equal to 1.5% of the qualified capital expenditures for the
facility.
Proposed law defines "qualified capital expenditures" as capital expenditures for federal income tax
purposes related to the project plus exclusions from certain capitalizations as provided for in the
Internal Revenue Code, minus certain capitalized costs for land, interest, and machinery.
Proposed law requires the appropriate local governing authority approve a rebate of local sales and
use taxes as provided for in proposed law. Further requires the request for a rebate of local sales and
use tax be accompanied by the approval.
Proposed law requires the application for final payment of either the sales and use tax rebate or the
project facility expense rebate to be filed no later than six months after a project completion report
has been signed and received by the Dept. of Revenue (DOR), the political subdivision, and the
business or, no later than 30 days after the end of the calendar year for certain businesses involved
in the compression-molding process when the application is for final payment of the sales and use
tax rebate. Proposed law requires a properly completed rebate request to be submitted for requests for the rebate
of either the sales and use tax or the project facility expense and requires the requests to be submitted
electronically unless the secretary has authorized an alternate method.
Proposed law requires payment of 80% of the sales and use tax rebate within 10 days of receipt of
the request. Further requires the DOR to audit the rebate requests for sales and use taxes and
authorizes the DOR to withhold from the remaining 20% of the rebate any amounts determined
through the audit to be ineligible for rebate.
Proposed law authorizes payments of interest to a taxpayer who has requested a sales and use tax
rebate pursuant to the provisions of proposed law when the DOR fails to timely pay the rebate.
Proposed law requires the DOR, upon request of the business, to grant a 30 day extension of time
within which a business has to file an application. Further authorizes the DOR to grant an additional
60 day extension for reasonable cause.
Proposed law a local taxing authority to review a rebate request for local sales and use taxes and
issue or disallow a rebate within 90 days of receipt by the local taxing authority of a properly
completed rebate request. Further authorizes a taxpayer to request reconsideration of any disallowed
items, but requires the taxpayer to do so within 60 days of receipt of the notice that items have been
disallowed.
Proposed law authorizes payments of interest to a taxpayer who has requested a local sales and use
tax rebate pursuant to the provisions of proposed law when the local governing authority fails to
timely pay the rebate.
Proposed law provides for collection of rebates issued when there has been a violation of the terms
of the contract providing for the rebate.
Proposed law extends the termination date of the program from January 1, 2018 to July 1, 2018.
(Amends R.S. 51:2456(B), 2457(A)(1), (B), and (C), and 2461; Adds R.S. 51:2457(A)(5) and (6),
(D), (E), and (F))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Require the appropriate local governing authority to approve via endorsement resolution
or letter of approval any applications for a rebate of local sales and use tax pursuant to
the provisions of proposed law and require the approval accompany the request for the
rebate of the local sales and use tax.
2. Require applications for either the sales and use tax rebate or the project facility expense rebate to be filed no later than six months after a project completion report has been
signed. For sales and use tax rebates, provide an alternate application deadline of 30
days after the end of the calendar year for certain businesses involved in a compression-
molding process.
3. Require properly completed requests for either the sales and use tax rebate or the project
facility expense rebate to be submitted electronically to the DOR, unless the secretary has
authorized an alternate method of submission.
4. Require the DOR to rebate 80% of the rebate requested within 10 days of receiving the
request. Further requires the DOR to audit the rebate request within three months of
receiving the rebate request and authorizes the DOR to withhold from the remaining 20%
rebate any amounts disallowed as a result of the audit.
5. Authorize interest payments when the DOR fails to timely pay a rebate.
6. Require a 30-day extension of time to file an application be granted by the DOR at the
applicant's request. Further authorize the DOR to grant an additional 60-day extension
when the applicant is able to show reasonable cause.
7. Require a local governing authority to review a request for local sales and use tax rebate
and to issue a rebate or notify the taxpayer of disallowed items within 90 days of receipt
of the properly completed rebate request and provide the procedure for requesting
reconsideration of any disallowed item.
8. Authorize interest payments by the local governing authority when it fails to timely pay
a rebate of local sales and use tax.
9. Provide for collection of any amount of a rebate issued when the terms of the contract
providing for the rebate is violated.
10.Extend the termination date of the program from January 1, 2018 to July 1, 2018.