Louisiana House Bill HB585

Louisiana 2019 Regular Session

• Introduced: 4/15/19
• Refer: 4/16/19
• Report Pass: 5/6/19
• Engrossed: 5/22/19
• Refer: 5/23/19
• Report Pass: 5/27/19
• Enrolled: 5/31/19
• Chaptered: 6/11/19
• Passed: 6/11/19

Caption

Adds structures located in opportunity zones to the property eligible to participate in the Restoration Tax Abatement program (EN SEE FISC NOTE LF RV See Note)

Impact

The impact of HB 585 on state laws includes expanding the scope of properties that can benefit from tax abatements, thereby promoting economic development in less prosperous regions. It effectively enhances the Restoration Tax Abatement program by aligning it with the federal definitions of opportunity zones, thus facilitating greater investment in those areas. This alignment is expected to encourage both local and state engagement in improving the economic landscape of these zones, making them more attractive for businesses and developers.

Summary

House Bill 585 amends existing legislation to include structures located in federally designated opportunity zones as eligible for participation in the Restoration Tax Abatement program. This bill modifies the definitions related to economic development districts and establishes requirements for contracts of exemption from ad valorem taxes for structures in these zones. By doing this, the bill aims to incentivize investment and development in economically distressed areas identified as opportunity zones, which are intended to stimulate economic growth.

Sentiment

The general sentiment around HB 585 appears to be positive, particularly among legislators and stakeholders focused on economic development. The support during the voting process, where the bill passed unanimously with 33 yeas and no nays in the Senate, indicates a strong bipartisan agreement on the need for such incentives. Proponents view the bill as a crucial step in making meaningful economic contributions to areas that have seen prolonged economic challenges.

Contention

While the bill enjoys broad support, potential contention may arise regarding the equitable distribution of benefits from the Restoration Tax Abatement program. Critics may argue that focusing tax incentives in specific opportunity zones could lead to unequal development across the state or exacerbate existing disparities. Additionally, concerns about the adequacy of oversight in ensuring that developments funded by these tax benefits truly serve the intended economic revitalization goals could emerge in future discussions.