The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 493 Engrossed 2018 Regular Session Luneau
Present law sunsets on June 30, 2018, a 20% reduction of payroll rebates made in Act No. 126 of
the 2015 R.S. to the Louisiana Quality Jobs and Competitive Projects Payroll Incentive tax incentive
programs.
Proposed law makes the rebate reductions permanent by eliminating the reversion to prior law rebate
rates.
Proposed law requires advanced notifications filed on or after July 1, 2018, the sales and use tax
rebate authorized in present law will be limited to 80% of the sales and use taxes paid. Further
provides that the project facility expense rebate shall be limited to one and 1.2% of qualified capital
expenditures for the facilities or facilities designated in the contract.
Present law within ten business days of the receipt of a properly completed rebate request, the
Department of Revenue shall rebate 80% of the total amount claimed for rebate in the rebate request.
Proposed law retains present law but changes the rebate time from 10 to 60 days.
Present law provides that within three months of the date of filing the rebate request, the Department
of Revenue shall audit the rebate request. During such three-month period, the Department of
Revenue shall disallow items determined to be ineligible for rebate. Within ten business days
following the expiration of such three-month period, the Department of Revenue shall rebate the
remaining 20% of the amount claimed on the rebate request less any amounts properly disallowed
during the three-month audit period.
Proposed law retains present law but changes the audit time, the time to disallow items determined
to be ineligible for a rebate, and the rebate of the remaining 20% of the claimed rebate from three
months to six months.
Present law provides for sales tax rebates for the Louisiana Quality Jobs and Enterprise Zone
programs for state and local sales taxes paid on the construction of the facility.
Proposed law reduces these sales tax rebates to 80% of the state and local sales taxes paid on the
construction of the facility as to advance notifications received after July 1, 2018.
Present law provides for a project facility expense rebate of 1.5% of the qualified capital
expenditures for the facility for the Louisiana Quality Jobs program in lieu of the sales tax rebate at
the applicant's option. Proposed law reduces the project facility expense rebate to 1.2% of the qualified capital expenditures
for the facility as to advance notifications received after July 1, 2018.
Proposed law clarifies that the maximum 15% of new payroll eligible for the rebate under the
Competitive Project Payroll Incentive program applies for projects for which an invitation to apply
was extended before July 1, 2015; this maximum percentage reduces to 12% for projects to which
an invitation to apply is extended on or after July 1, 2015.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 51:1787(A)(1)(a)(iv), 2455(A), (D)(3), 2457(B)(3)(b) and (B)(3)(c), 3121(C)(3)(b)(i)
and (C)(4)(c); adds R.S. 51:2456(B)(1)(a)(iv) and (B)(1)(b)(iv); and repeals Section 3 of Act 126 of
2015 R.S. and Section 2 of Act 28 of 2016 1E.S.)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Provides a cap for sales and use rebates of 80% for the sales and use taxes
paid.
2. Changes the time frame for the filing and the distribution of rebates, and
extends the audit period of certain rebates.