Establishes a rebate for companies which receive a federal Small Business Innovation Research Grant (RE -$3,000,000 GF RV See Note)
The bill aims to promote innovation and economic growth within the state by supporting small businesses engaged in research and development. The implementation of this rebate program is expected to enhance Louisiana's attractiveness for startups and small enterprises, which often lack the resources for substantial research investments. However, the rebates are contingent upon current tax collections, meaning their availability may fluctuate based on economic conditions. The DED will monitor and evaluate the program, ensuring compliance with the established rules.
House Bill 950 establishes a state rebate program for companies that receive a federal Small Business Innovation Research Grant. This legislation allows eligible companies to claim a rebate equal to 30% of the amount awarded under the federal grant, thereby incentivizing businesses to engage in research and development activities. The total amount of rebates granted under this program is capped at $5 million annually. Businesses must submit applications to the Department of Economic Development (DED) while adhering to specified deadlines and provisions regarding the application process and fees.
The sentiment around HB 950 is generally positive among proponents, who argue that it serves as a crucial support mechanism for small businesses and fosters a culture of innovation. However, concerns have been raised about the potential limitations and requirements for businesses, such as the application process, which could hinder smaller entities from accessing these incentives. Overall, supporters view the bill as a step toward enhancing the economic landscape in Louisiana, while some critics remain skeptical about its impact on various business segments.
Notable points of contention include the rebates being limited to those companies qualifying for a federal grant, which may exclude a significant number of businesses that are also propelling innovation but do not fit within the federal criteria. Additionally, the stipulation that no rebates will be paid before July 1, 2017, and the requirement for a first-come, first-served approval basis could create competitive pressures that some small businesses may find challenging to navigate. Lastly, the involvement of the DED in administering the program raises questions regarding efficiency and transparency in the allocation of the rebates, influencing how effectively these funds will spur growth.