Requires state agencies which administer tax credits and rebates to report certain information (EN NO IMPACT GF EX See Note)
Impact
By requiring annual evaluations, HB 316 is expected to influence state laws governing tax incentives. It seeks to ensure that tax credits are not only beneficial to intended beneficiaries but also that they yield a positive return on investment for the state. This legislation can potentially lead to the re-evaluation of existing tax incentive programs, encouraging legislative action based on actual economic outcomes. Notably, the bill stipulates that proprietary information should remain confidential, protecting sensitive data while still demanding accountability from state agencies.
Summary
House Bill 316 enacts new reporting requirements for state agencies in Louisiana that administer tax credits and rebates. The bill mandates that these agencies produce annual reports evaluating the effectiveness and economic impact of each tax incentive they oversee. Specifically, the Department of Revenue is tasked with preparing a tax exemption budget that reveals the state revenue loss associated with tax exemptions over the past three years. This initiative aims to enhance transparency and accountability of state tax incentive programs, allowing for a clearer understanding of their costs to the state and their effectiveness in achieving intended benefits.
Sentiment
Overall, the sentiment surrounding HB 316 appears to be positive among those who prioritize transparency in government spending and accountability in tax incentive programs. Proponents argue that the increased scrutiny will help to identify ineffective incentives and streamline tax expenditures, which could ultimately benefit Louisiana’s economy. However, there is some concern from critics about potential bureaucratic burdens on state agencies and possible pushback from groups benefiting from existing tax incentives.
Contention
The main points of contention regarding HB 316 stem from concerns about enforcement and the implications of increased reporting obligations. Some legislative members worry about the capacity of state agencies to comply with enhanced reporting requirements, given existing workloads. Additionally, discussions may arise regarding the potential impacts on specific industries that rely heavily on tax incentives, as a reassessment of these incentives could lead to reductions or retraction of benefits. The degree to which the bill may influence policy modifications or the future of specific tax incentive programs continues to be a subject of debate among state legislators.
Changes the deadline for submission of reports by agencies which administer certain tax incentives and authorizes electronic submission of such reports (EG INCREASE GF EX See Note)
Provides for the required reporting of certain revenue, exemptions, credits, rebates in the tax exemption budget and on LaTrac. (8/1/18) (EN NO IMPACT See Note)
Provides for changes to reporting requirements of the Department of Economic Development and the Economic Development Corporation (EN NO IMPACT GF EX See Note)