RÉSUMÉ DIGEST
ACT 664 (HB 794) 2016 Regular Session Abramson
Existing 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.
Prior law entitled a qualified business participating in the program to receive the same
benefits authorized through the Enterprise Zone Program.
New law replaces the additional benefits in prior law that a qualified business was entitled
to receive through the Enterprise Zone Program with 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.
New 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.
New 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))