Creates the Infrastructure and Jobs Creation Tax Credit Program to fund grants for public-private partnership investment in Louisiana. (8/1/21) (OR DECREASE GF RV See Note)
Impact
By creating this tax credit program, SB 237 is anticipated to influence state laws regarding fiscal policy and public infrastructure funding in Louisiana. It allows for tax credits to be sold, increasing liquidity for investors while simultaneously enhancing the state's capacity to undertake significant public works. The grant component can reach up to $2.5 million per tax year per project, which is instrumental in facilitating substantial infrastructure efforts. Organizations engaging in qualifying projects will contribute positively by advancing economic growth and potentially creating job opportunities for residents.
Summary
Senate Bill 237 establishes the Infrastructure and Jobs Creation Tax Credit Program aimed at funding public-private partnership investment for infrastructure projects within Louisiana. The bill authorizes tax credits that can offset income and corporate franchise taxes or insurance premium taxes to encourage investments in significant infrastructure improvements. With a cap of $55 million set for the total credits available over the life of the program, this legislation seeks to create a structured approach to finance essential projects through collaboration between the government and private entities.
Sentiment
The general sentiment surrounding SB 237 seems to favor the initiatives it proposes. Proponents argue that the bill represents a progressive step toward recruiting necessary investments in Louisiana's infrastructure, thereby boosting local economies and providing significant positive economic benefits. However, there may be some concern amongst segments of the populace about the implications of state funds being invested in private undertakings, necessitating transparency and accountability mechanisms to ensure maximum benefit to the public.
Contention
Notable points of contention might arise concerning the eligibility for grants and the criteria used to define a 'qualifying project.' Discussions around what constitutes a significant positive economic benefit could lead to debates over the effectiveness and efficiency of the program. Furthermore, the decision-making process regarding which projects receive funding and tax credits will likely command scrutiny, highlighting the need for a clear and equitable regulatory framework to administer the new tax credit program effectively.
Requests the study of the feasibility of establishing a tax credit program as a funding mechanism for public-private partnership investment in Louisiana infrastructure projects.
Establishes the Invest Louisiana Small Business Development Fund and authorizes a premium tax credit for small business growth investments made by qualified investors. (1/1/22) (OR -$30,000,000 GF RV See Note)
Urges and requests the House of Representatives to study the practicality and feasibility of establishing a funding mechanism for public-private partnership investment in Louisiana infrastructure projects
Creates the Louisiana Entrepreneurial Assistance and Development (LEAD) Program for tax credits for venture capital investments (OR -$37,500,000 GF RV See Note)
Provides relative to tax credits for state-certified musical or theatrical productions and state-certified infrastructure projects (OR DECREASE GF RV See Note)
To commend and congratulate Amanda Ames on the occasion of her retirement with over twenty years of dedicated public service to the state of Louisiana.