Louisiana House Bill HB247

Louisiana 2017 Regular Session

• Introduced: 3/29/17
• Refer: 3/29/17
• Refer: 4/10/17

Caption

Provides relative to corporate income tax deductions (OR +$16,500,000 GF RV See Note)

Impact

The repeal of the sunset provision effectively maintains several tax advantages that corporations currently benefit from, thereby impacting state revenue collection. By allowing the continued exclusion of certain funds received from government entities for public transportation systems, HB 247 supports ongoing public infrastructure initiatives while also benefiting corporations. Additionally, the extended depletion allowances for oil and gas operations reflect Louisiana's reliance on its natural resources, affirming the state's economic ties to these industries.

Summary

House Bill 247 proposes to repeal the sunset provision established by Act No. 123 of 2015 regarding specific corporate income tax exclusions, deductions, and reductions in Louisiana. The bill aims to ensure the continuity of various tax benefits, including the exclusion of certain governmental subsidies and deductions related to oil and gas depletion and net operating losses for corporations. This move intends to provide more stability and predictability in the corporate tax environment within the state.

Sentiment

Discussion around HB 247 appears to be largely supportive among stakeholders in the corporate sector and those involved in oil and gas industries, who see this bill as a means to promote economic growth and investment. However, concerns may arise from fiscal conservatives who worry about potential revenue losses and the long-term implications of continuing these tax breaks. The sentiment indicates a division between expectations for economic stimulation versus fiscal responsibility.

Contention

While supporters argue that these deductions are crucial for sustaining competitive business operations within Louisiana, opponents might view the continued exemptions as undue benefits to corporations at the cost of essential public services. The ongoing debate reflects broader themes about tax policy, economic priorities for Louisiana, and the balance between supporting business and ensuring adequate public funding.