Makes permanent reductions to certain tax incentive rebate programs. (Item # 3)(gov sig) (EG +$11,000,000 GF RV See Note)
Impact
If enacted, SB 3 would solidify reductions in funding for programs intended to stimulate economic growth and job creation within Louisiana. Proponents argue that permanent reductions will help to stabilize the state budget by curtailing unnecessary expenditures on corporate incentives. However, critics express concern that such measures may lead to adverse outcomes by diminishing the state's ability to attract and retain businesses, particularly during economic downturns. As these rebate programs are often leveraged to draw investments and create jobs, the permanency of their reductions could potentially hinder Louisiana's competitiveness in the market.
Summary
Senate Bill 3 proposes to make permanent the reductions to certain tax incentive rebate programs established in Act No. 126 of the 2015 Regular Session. The bill specifically targets a 20% reduction in rebate incentives associated with various economic development initiatives in the state, including the Louisiana Mega-Project Energy Assistance Rebate, the Louisiana Quality Jobs program, and several others. By removing the three-year sunset provision set to expire on June 30, 2018, the bill aims to ensure that these reductions in rebates are maintained indefinitely, which could have significant implications for fiscal policy in Louisiana.
Sentiment
The sentiment surrounding SB 3 appears mixed, with supporters emphasizing fiscal responsibility and the importance of maintaining a balanced budget in light of the state’s fiscal challenges. Meanwhile, detractors argue that this bill signifies a retreat from supporting economic growth through incentivizing business development and job creation. This tension reflects a broader dialogue on how best to manage state finances while fostering an environment conducive to economic activity.
Contention
Notable points of contention regarding SB 3 center around the long-term consequences of entrenching these reductions into law. Advocates for economic development argue that the state should not preemptively remove tools for incentivizing business growth, particularly given the competitive nature of attracting investment both regionally and nationally. Opponents of the bill fear that this could restrict local economies from diversifying and growing sustainably. The debate highlights the challenge of balancing budgetary constraints with the need for proactive economic strategies.
Makes permanent reductions to credits and rebates under the Enterprise Zone, Quality Jobs, and Competitive Project Payroll Incentive programs. (Items #26 and 27) (gov sig) (EG +$23,290,000 GF RV See Note)
Reduces the amount of the rebate for the Competitive Projects Payroll Incentive Program and provide for continued effectiveness of reductions in the amount of certain rebates (Item #3) (EG +$11,000,000 GF RV See Note)
Removes the June 30, 2018, sunset provision and makes permanent reductions to certain income and corporation franchise tax credits. (gov sig) (EN +$12,500,000 GF RV See Note)
Provides for administration of incentive rebates under the Quality Jobs and Enterprise Zone programs. (Items #21 and 27)(gov sig) (REF -$3,128,880 GF RV See Note)