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 173 Original 2017 Regular Session Jackson
Abstract: Relative to the Competitive Projects Payroll Incentive Program, reduces the rebate
percentage, and removes the sunset date on reductions in various rebates.
Present law (R.S. 51:3121) establishes the Competitive Projects Payroll Incentive Program through
which businesses can 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 taxes 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 sets the amount of the rebate equal to 1.2% of certain qualified capital expenditures and
a maximum of 12% of eligible new payroll until June 30, 2018, after which time the maximum
rebate is 1.5% of the amount of such capital expenditures and up to 15% of eligible new payroll.
Proposed law reduces the authorized rebate from 1.2% to 1% of qualified capital expenditures and
removes provision for increase in maximum rebate.
Proposed law also removes present law provisions for future increases in the following rebates by
removing the June 30, 2018, sunset date on the current rebate:
Present law (R.S. 51:2367) authorizes the secretary of the Dept. of Economic Development
to grant a La. Mega Project Energy Assistance Rebate of severance taxes paid on natural gas
to certain mega-projects when the secretary has determined that the consumption of energy
will be a major cost component of the operation of the project. Present law provides that the
maximum rebate is 80% of La. severance taxes paid on natural gas until June 30, 2018, after
which the maximum rebate is 100% of such amount.
Present law (R.S. 51:2455) provides for the Quality Jobs Program, which authorizes the
granting of contracts by the Bd. 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. Present law authorizes a rebate equal to the benefit rate
as defined in present law multiplied by 80% of the gross payroll of new direct jobs until June
30, 2018, after which the maximum rebate is 100% of the gross payroll.
Present law (R.S. 51:3114) creates the Corporate Headquarters Relocation Program, which
grants to a "qualified business" a contract to receive a relocation rebate to relocate or expand
its "headquarters" in La. Present law authorizes a rebate of 20% of "relocation costs" until June 30, 2018, after which the maximum rebate is 25% of relocation costs.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 51:3121(C)(4)(c) and §6 of Act No. 126 of 2015 R.S. as amended by Act No. 28 of
2016 1st E.S.; Repeals §3 of Act No. 126 of 2015 R.S. and §7 of Act No. 126 of 2015 R.S. as
enacted by Act No. 28 of 2016 1st E.S.)