GREEN SHEET REDIGEST
HB 783 2016 Regular Session Abramson
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX/TAX REBATES: Relative to the Louisiana Quality Jobs Program
DIGEST
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.
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Prepared by James Benton. 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 authorizes 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.
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Prepared by James Benton. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Makes technical changes.
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Prepared by James Benton.