Provides a credit against income and corporation franchise tax liability to certain businesses which offer essential services during emergency situations (EG -$1,000,000 GF RV See Note)
Impact
The implementation of HB 688 could significantly impact state laws relating to tax credits and disaster preparedness, aiming to incentivize businesses to maintain operational readiness during emergencies. The bill defines various critical terms such as 'essential services' and 'qualified expenses,' providing clarity on what constitutes eligible activities. By encouraging businesses to remain open during disasters, the law aims to bolster community resilience and ensure that essential services are available to the public when they are needed most.
Summary
House Bill 688 introduces a tax credit that benefits businesses which provide essential services during emergency situations and natural disasters. This legislation allows businesses to secure a credit against their Louisiana income and corporation franchise tax for qualifying expenses incurred while preparing to remain operational during emergencies. The bill sets specific criteria for these expenses, which must be certified by the Department of Revenue, ensuring that only legitimate costs are eligible for the credit.
Sentiment
The sentiment surrounding HB 688 appears to be supportive among business owners and proponents of disaster preparedness. Supporters argue that the tax credit will provide much-needed financial relief to companies that invest in staying open during crises, thus helping to safeguard jobs and essential services. However, there may also be concerns regarding the ability of the tax credit system to appropriately limit the claims to those businesses that genuinely serve a critical role during emergencies.
Contention
Notable points of contention might arise around the rules for obtaining the tax credit, especially regarding the pre-clearance status required for emergency preparedness plans. Businesses that close for any portion of an emergency will be disqualified from receiving the credit, which may raise issues for smaller businesses or those lacking resources to remain operational under challenging conditions. Overall, this bill represents a proactive approach to disaster response, but its execution will require careful regulation to ensure fairness and effectiveness.
Provides for a credit against income and corporation franchise tax liability for certain businesses which offer essential services during certain emergency situations (OR DECREASE GF RV See Note)
Repeals the corporation franchise tax and removes eligibility of certain tax credits to be claimed against corporation franchise tax (OR -$324,000,000 GF RV See Note)
Requires DOH to establish Regional Hospital System Program for Emergency Preparedness and to annually survey preparedness and resiliency of State's hospital system in event of public emergency.