RÉSUMÉ DIGEST
ACT 663 (HB 783) 2016 Regular Session Abramson
Existing 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
existing law multiplied by 80% of the gross payroll of new direct jobs.
Prior law entitled employers participating in the Quality Jobs Program to receive the same
benefits authorized through the Enterprise Zone Program.
New law replaces the additional benefits in prior law that an employer was entitled to receive
through the Enterprise Zone Program with the following rebates:
(1)A sales and use tax rebate for 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.
New 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.
New law requires the appropriate local governing authority to approve a rebate of local sales
and use taxes as provided for in new law. Further requires that the request for a rebate of
local sales and use tax be accompanied by the approval.
New law authorizes the board to approve or deny a request for a state sales and use tax rebate
regardless of whether a local governing body submits an endorsement resolution, written
reasons for denial, or a written request for delay of consideration for a rebate of the local
sales and use tax within the time specified in new law.
New 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.
New 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.
New 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.
New law authorizes payments of interest to a taxpayer who has requested a sales and use tax
rebate when the DOR fails to timely pay the rebate.
New 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.
New law requires 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. New law authorizes payments of interest to a taxpayer who has requested a local sales and
use tax rebate pursuant to the provisions of new law when the local governing authority fails
to timely pay the rebate.
New law provides for collection of rebates issued when there has been a violation of the
terms of the contract providing for the rebate.
New law extends the termination date of the program from Jan. 1, 2018 to July 1, 2018.
Effective July 1, 2016.
(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))