Authorizes the Department of Economic Development to provide an extension for certain job creation requirements for enterprise zone incentives and quality jobs incentive rebates due to the impacts of COVID-19, Hurricane Laura, and Hurricane Delta. (gov sig) (Items #26 and #65) (EN DECREASE GF RV See Note)
Impact
The enactment of SB67 is expected to positively impact companies that have faced operational challenges due to external circumstances, enabling them to maintain compliance with state incentive programs. By extending deadlines, the legislation aims to support businesses as they navigate recovery, ensuring that job creation efforts are not penalized due to factors beyond their control. This adjustment could also lead to the stabilization of employment in affected areas, thereby aiding local economies in their recovery processes.
Summary
Senate Bill 67 aims to provide extensions for certain job creation requirements associated with enterprise zone incentives and quality jobs incentive rebates in Louisiana, specifically in response to disruptions caused by COVID-19 and hurricanes Laura and Delta. The bill enables the Department of Economic Development to extend the timeframe for companies working under enterprise zone contracts and quality job incentive agreements to fulfill their job creation obligations, effectively giving them additional time to recover from the challenges posed by natural disasters and public health emergencies.
Sentiment
The sentiment around SB67 appears to be generally supportive, particularly among business communities who recognize the need for assistance during trying times. Legislators and stakeholders acknowledged the pressures placed on businesses by the COVID-19 pandemic and the traumatic impacts of hurricanes. However, some concerns were raised regarding the long-term sustainability of incentive programs and whether these extensions would generate real economic growth or merely delay necessary adjustments.
Contention
While the majority of discussions surrounding SB67 have been supportive, some dissenting voices expressed skepticism regarding the efficacy of extending job creation deadlines. Critics raised questions about whether the bill truly addresses the underlying issues faced by businesses or if it merely provides temporary relief with no substantial oversight on the effectiveness of such extensions in achieving job growth. The balance between providing necessary support and ensuring accountability in the use of tax incentives emerged as a key point of contention in legislative dialogues.
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)
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)
Provides relative to enterprise zone requirements, incentives, and effectiveness, and establishes a sunset date for the program. (Item #27)(gov sig) (RE INCREASE GF RV See Note)
Establishes a sales tax holiday to provide relief for recovery as a result of Hurricane Laura and the COVID-19 pandemic (Item #26) (EN -$4,500,000 GF RV See Note)
Establishes a baseline limit on the payment of rebates and the use of tax credits in a fiscal year for Enterprise Zone and Quality Job Program contracts and provides a sunset date for the Enterprise Zone program. (gov sig)