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 794 Reengrossed 2016 Regular Session Abramson
Abstract: Provides relative to a sales and use tax rebate authorized under Competitive Projects
Payroll Incentive Program and extends the termination date of the program.
Present law establishes the Competitive Projects Payroll Incentive Program through which
businesses may contract with the Dept. of Economic Development for receipt of rebate payments in
exchange for the creation of jobs. The contract provides for three different rebates: a rebate based
on the amount of new payroll, a sales and use tax rebate for taxes paid, and a rebate equal to a
percentage of the amount of certain qualified capital expenditures associated with a facility utilized
in the performance of the contract.
Present law entitles a qualified business participating in the program to receive the same benefits
authorized through the Enterprise Zone Program.
Proposed law replaces the additional benefits in present law that a qualified business is entitled to
receive through the Enterprise Zone Program with 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.
Proposed law modifies the definition of "qualified capital expenditures" relative to capitalized costs
of machinery and equipment to specify that the qualifying machinery and equipment are
manufacturing machinery and equipment.
Proposed law extends the termination date of the program from July 1, 2017 to July 1, 2018.
Effective July 1, 2016.
(Amends R.S. 51:3121(C)(3)(a)(ii) and (4))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the termination date of the program in present law from July 1, 2017 to July 1,
2018.