Louisiana House Bill HB668

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Provides requirements for enterprise zone contracts

Impact

The introduction of HB668 is expected to tighten the requirements for businesses benefiting from the enterprise zone tax credits, thereby potentially limiting the financial incentives available to larger retailers while ensuring better targeting of support to smaller businesses and those offering full-time employment opportunities. Furthermore, the limitations on contracts with businesses outside enterprise zones aim to encourage investment and job creation within designated areas, fostering local economic growth and reducing disbursements of state resources to larger, potentially less vulnerable retailers.

Summary

House Bill 668 aims to refine the eligibility criteria for businesses seeking tax credits through the state's enterprise zone program. The enterprise zone program already enables companies to enter contracts with the Board of Commerce and Industry for tax credits in exchange for job creation, provided certain employee qualifications are met. SB668 amends existing law to exclude part-time positions from the job creation requirements and mandates that at least 35% of new hires must be residents of an enterprise zone, receiving public assistance prior to employment, or previously considered unemployable. For businesses outside enterprise zones, this percentage increases to 50%.

Sentiment

Discussions and sentiment around HB668 suggest a divide between proponents, who view the bill as a necessary step for revitalizing local economies by focusing on employment and neighborhood needs, and critics, who caution that the restrictions might hamper the growth potential of larger businesses that can contribute significantly to state revenue. This polarized perspective indicates strong opinions on balancing support for small businesses with the broader economic contributions of larger enterprises.

Contention

A key point of contention surrounding HB668 is whether the diminished eligibility for tax credits will stifle potential job creation in important sectors driven by larger retail entities that could diversify local economies. Proponents argue that the bill aligns resource distribution with intended outcomes in job creation and assistance programs, while detractors warn that limiting participation to small businesses could unintentionally restrict available employment opportunities and harm economic growth in less populated areas.