HLS 201ES-56 ORIGINAL
2020 First Extraordinary Session
HOUSE BILL NO. 18
BY REPRESENTATIVE WRIGHT
TAX/TAX REBATES: Provides relative to the Competitive Projects Payroll Incentive
Program (Item #18)
1 AN ACT
2To amend and reenact R.S. 51:3121(A)(7), (B)(1)(b)(v), and (C)(1), (2), and (3)(a) and to
3 enact R.S. 51:3121(B)(1)(b)(vi) through (ix), relative to the competitive projects
4 payroll incentive program; to provide relative to the program's eligibility
5 requirements; to extend the duration of the program; to remove certain approvals; to
6 provide relative to certain requirements for participation in the program; to provide
7 for certain limitations; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 51:3121(A)(7), (B)(1)(b)(v), and (C)(1), (2), and (3)(a) are hereby
10amended and reenacted and R.S. 51:3121(B)(1)(b)(vi) through (ix) are hereby enacted to
11read as follows:
12 ยง3121. Competitive Projects Payroll Incentive Program
13 A. Definitions. For purposes of this Section, the following words or terms
14 as used in this Chapter shall have the following meanings, unless a different meaning
15 appears from the context:
16 * * *
17 (7) "Qualified business" means a business certified by the secretary as
18 meeting the eligibility requirements of Subsection B of this Section, approved by the
19 Joint Legislative Committee on the Budget to participate in the program, and
20 executing a contract providing the terms and conditions for its participation.
21 * * *
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HB NO. 18
1 B. Eligibility requirements. (1) A business shall be eligible for participation
2 in the program if all of the following requirements are met:
3 * * *
4 (b) The business will primarily engage in one of the following activities at
5 the project site:
6 * * *
7 (v) Cybersecurity.
8 (vi) Renewable or a recycling process.
9 (vii) Agri-bio industry.
10 (viii) COVID virus screening, protective gear, medical devices, drugs, or
11 equipment for treatment of COVID infected patients.
12 (ix) Other activities as recommended by the secretary and approved by the
13 Joint Legislative Committee on the Budget.
14 * * *
15 C. Applications and contract approval and administration. (1) At the
16 invitation of the secretary, a A business may apply for a contract by submitting to the
17 department such the certified statements and substantiating documents as the
18 department may require.
19 (2) The secretary may shall certify eligibility of the business and request
20 approval by the Joint Legislative Committee on the Budget of its participation to
21 participate in the program on in accordance with terms and conditions specified by
22 the secretary in a proposed contract, if the secretary determines all of the following:
23 (a) The business meets the eligibility requirements provided for in
24 Subsection B of this Section.
25 (b) Participation in the program is needed in a highly competitive site
26 selection situation to encourage the business to locate or expand in the state.
27 (c) Securing the project will result in a significant positive economic benefit
28 to the state.
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HB NO. 18
1 (3)(a)(i) Upon the approval by the Joint Legislative Committee on the
2 Budget of participation in the program by the business, the The secretary shall
3 execute the contract with the business, and provide a copy to the Department of
4 Revenue prior to the payment of any benefits under the contract.
5 (ii) No new contract shall be approved on or after July 1, 2022 July 1, 2026,
6 but contracts existing on that date may continue and may be renewed.
7 * * *
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 18 Original 2020 First Extraordinary Session Wright
Abstract: Expands businesses eligible to participate in the Competitive Projects Payroll
Incentive Program, extends the termination of the program from July 1, 2022, to July
1, 2026, and removes discretionary authority of the secretary of the Dept. of
Economic Development to invite businesses to participate in the program and
approvals of the Joint Legislative Committee on the Budget.
Present law establishes the Competitive Projects Payroll Incentive Program (hereinafter
"program") for qualified businesses to receive a rebate of up to 15% of eligible new payroll
and for either a sales and use tax rebate for capital expenditures for a facility designated in
the contract or for a project facility expense rebate.
Proposed law retains present law.
Present law defines an eligible business as a business that has at least 50% of its total annual
sales from a Louisiana site to out-of-state customers, or to in-state customers who resell the
product or service to an out-of-state customer for ultimate use, or the federal government and
the business is primarily engaged in activities that include manufacturing of durable goods
including automobiles, motorcycles or other passenger vehicles, aircraft, spacecraft, medical
devices, batteries or other power storage devices, manufacturing of pharmaceutical products,
conversion of natural gas to diesel, jet fuel, or other refined fuels, or data storage or data
services. Further requires an eligible business to offer, within 90 days of qualifying for the
incentive rebate, a basic health benefits plan to its employees.
Proposed law retains present law but expands the businesses eligible to participate in the
program to include businesses engaged in cybersecurity, renewable or a recycling process,
the agri-bio industry, or COVID virus screening, protective gear, medical devices, drugs, or
equipment for treatment of COVID infected patients.
Present law authorizes businesses to participate in the program upon invitation by the
secretary of the Dept. of Economic Development (DED) and approval by the Joint
Legislative Committee on the Budget (JLCB). Further authorizes other business activities
to be eligible to participate in the program as recommended by the secretary of DED and
approved by JLCB.
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HB NO. 18
Proposed law changes present law by eliminating the requirement that businesses be invited
to participate in the program by invitation of the secretary of DED and JLCB's requirement
to approve a business to participate in the program. Further eliminates the requirement that
JLCB approve other business activities in order to be eligible to participate in the program.
Present law authorizes the secretary of DED to certify eligibility of the business and request
approval by JLCB of its participation in the program, if the secretary determines all of the
following:
(1)The business meets the eligibility requirements provided for in present law.
(2)Participation in the program is needed in a highly competitive site selection situation
to encourage the business to locate or expand in the state.
(3)Securing the project will result in a significant positive economic benefit to the state.
Proposed law eliminates the requirement that JLCB approve a businesses participation in the
program. Otherwise retains present law.
Present law prohibits any new contracts from being approved on or after July 1, 2022, but
contracts existing on that date may continue and may be renewed.
Proposed law extends the termination date for new contracts to be entered into from on or
after July 1, 2022, to on or after July 1, 2026.
(Amends R.S. 51:3121(A)(7), (B)(1)(b)(v), and (C)(1), (2), and (3)(a); Adds R.S.
51:3121(B)(1)(b)(vi)-(ix))
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