SLS 23RS-100 REENGROSSED
2023 Regular Session
SENATE BILL NO. 6
BY SENATOR ALLAIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/FRANCHISE/CORPORATE. Reduces the rate of the Quality Jobs Program project
facility expense rebate when certain conditions are met. (1/1/24)
1 AN ACT
2 To enact R.S. 51:2456(B)(2), relative to the Quality Jobs Program; to provide relative to
3 sales and use tax and qualified capital expenditure rebates; to provide for the
4 reduction of the rebates under certain conditions; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 51:2456(B)(2) is hereby enacted to read as follows:
7 ยง2456. Rebate; payments
8 * * *
9 B. * * *
10 (2) Notwithstanding any provision of Paragraph (1) of this Subsection,
11 R.S. 51:2457, or any other law to the contrary, for contracts with advance
12 notifications filed after December 31, 2023, the sales and use tax rebates and the
13 project facility expense rebate authorized by this Chapter shall be reduced as
14 follows:
15 (a) If the corporation franchise tax rate is reduced pursuant to R.S.
16 47:601.2, the amount of the rebates shall be reduced by one-half of the
17 percentage by which the franchise tax rate is reduced beginning in the year in
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 6
SLS 23RS-100 REENGROSSED
1 which the rate reduction is first applicable.
2 (b) If the corporation franchise tax rate is reduced pursuant to an act of
3 the legislature, the amount of the rebates shall be reduced by one-half of the
4 percentage by which the franchise tax rate is reduced beginning in the year in
5 which the rate reduction is first applicable.
6 (c) If the corporation franchise tax is repealed, the rebates shall be
7 reduced by fifty percent.
8 Section 2. This Act shall become effective on January 1, 2024; if vetoed by the
9 governor and subsequently approved by the legislature, this Act shall become effective on
10 the day following such approval by the legislature or January 1, 2024, whichever is later.
The original instrument was prepared by Leonore Heavey. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Danielle Clapinski.
DIGEST
SB 6 Reengrossed 2023 Regular Session Allain
Present law provides for the Quality Jobs Program under which employers that meet certain
conditions are eligible to receive payroll rebates on certain payroll expenses as well as
rebates of certain costs associated with the materials and equipment needed to complete the
project.
Present law authorizes either a rebate of all state sales and use taxes on purchases of
materials used in the construction of a building and machinery and equipment used in the
enterprise related to the quality jobs contract or a rebate of one and one-half percent of the
qualified capital expenditures for the facility designated in the contract.
Present law also authorizes a rebate of local sales and use taxes on purchases of materials
used in the construction of a building and machinery and equipment.
Proposed law provides for reductions of the amount of these rebates if the corporate
franchise tax is reduced or eliminated as follows:
(1)If the automatic rate reduction trigger reduces the franchise tax by operation of law,
the rebates will be reduced by one half the reduction in the franchise tax rate.
(2)If the legislature reduces the franchise tax through a legislative act, the rebates will
be reduced by one-half the reduction in the franchise tax rate.
(3)If the franchise tax is repealed, the rebates shall be reduced by fifty percent.
Proposed law applies only to contracts for which advance notifications are filed after
December 31, 2023, and will not apply to existing contracts.
Effective January 1, 2024.
(Adds R.S. 51:2456(B)(2))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 6
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Makes technical changes.
Senate Floor Amendments to engrossed bill
1. Changes the reduction in the Quality Jobs Program sales and use tax rebate
and project facility expense rebate from the same percentage reduction as the
franchise rate reduction to one-half of the percentage reduction to the
franchise tax.
2. Makes technical changes.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.