Establishes a competitive projects payroll tax credit for certain businesses impacted by certain public health emergencies
Impact
The implementation of HB 533 is expected to have a significant impact on businesses that meet its criteria, particularly smaller enterprises with fewer than 50 employees. The tax credits offered, set at 6% of wages for each new job created, provide financial relief by encouraging job creation and fostering recovery from the pandemic. Additionally, the program allows for tax credits to be carried forward if they exceed annual tax liabilities, which increases the financial feasibility for businesses aiming to recover economically after COVID-19 restrictions.
Summary
House Bill 533 introduces a payroll tax credit designed to support businesses that have been adversely affected by the COVID-19 pandemic. It establishes a new incentive for eligible businesses engaged in sectors categorized under the North American Industry Classification Code of 44, 45, or 72. To qualify, these businesses must have been operational in Louisiana as of March 13, 2020, and demonstrate they have created a minimum of five new jobs as a result of the program, thereby stimulating local employment.
Sentiment
The sentiment surrounding HB 533 tends to be favorable among proponents of small business recovery, who view the measure as a necessary support during an economically challenging period. However, there are some concerns regarding the sustainability of such incentives and whether they will adequately address the varying needs of different industries affected by the pandemic. Overall, the bill has sparked discussions about the responsibility of the state to safeguard economic stability and job creation in these unprecedented times.
Contention
Notable points of contention revolve around the restrictions on eligibility, including limits on the total payroll eligible for credits and the exclusion of certain businesses from receiving multiple incentives. Critics may argue that the bill, while beneficial to some, does not provide comprehensive support to all businesses affected by the pandemic, particularly those in industries outside the specified classifications. Furthermore, the establishment of a timeline for the credit's availability (ending December 31, 2023) raises questions about long-term support for economic recovery.
Creates the Competitive Projects Payroll Incentive Program which grants rebates of up to 15% of qualifying payroll to certain businesses and rebates of sales tax or capital expenditures if DED determines it will result in significant positive economic benefit to the state. (7/1/12) (EG DECREASE GF RV See Note)
"Road to Tax Relief Act"; provides credit for sales tax remittances for businesses impacted by public highway projects, including Interstate 80 project; provides tax credits for certain businesses and persons impacted by same projects; makes appropriation.
"Road to Tax Relief Act"; provides credit for sales tax remittances for businesses impacted by public highway projects, including Interstate 80 project; provides tax credits for certain businesses and persons impacted by same projects; makes appropriation.
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.