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 19 Engrossed 2018 Second Extraordinary Session Jackson
Abstract: Extends the sunset date on reductions in various rebates from June 30, 2018 to June 30,
2023.
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, 2023, 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, 2023, 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,
2023, after which the maximum rebate is 25% of relocation costs.
Proposed law changes the present law provisions for future increases in the following rebates by
extending the sunset date of the reductions from June 30, 2018 to June 30, 2023 on the La. Mega
Project Energy Assistance Rebate, the Quality Jobs Program Rebate, the Corporate Headquarters
Relocation Program Rebate thereby making the reduction in the amount of the rebate permanent.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends §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.)
Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Delete provisions making the reductions in the amount of the rebates permanent.
2. Continue effectiveness of the reduction in the amount of the rebates through June 30,
2023.