Louisiana House Bill HB759

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15

Caption

Reduces certain income and corporation franchise tax credits (OR +$11,000,000 GF RV See Note)

Impact

The bill's adjustments will reduce the financial benefits previously afforded to businesses for their charitable contributions. For instance, the bill lowers the maximum tax credit for donations to playgrounds from $1,000 to $800 and decreases the per-employee tax credit for basic skills training from $250 to $200. These changes are expected to generate increased tax revenues for the state, estimated at approximately $11 million, impacting the overall financial landscape of corporate tax liabilities in Louisiana. As a result, businesses may reconsider their donation strategies and partnerships with community programs.

Summary

House Bill 759 proposes significant reductions to certain income and corporation franchise tax credits in Louisiana. The changes aim to amend existing laws and adjust the tax incentives related to various types of donations and support provided by businesses to public schools and training programs. This bill specifically targets tax credits for qualified donations to playgrounds, employee training programs, public schools, and other community initiatives, underlining a push for fiscal responsibility in state taxation.

Sentiment

General sentiment regarding HB 759 is mixed within the legislative discussions. Some legislators support the bill as a necessary move towards efficient tax management, arguing that adjustments may lead to a more balanced budget. However, there are notable concerns among opponents, who argue that reducing tax credits could discourage corporate philanthropy and diminish support for essential social programs serving local communities, thereby impacting economic development negatively.

Contention

Key points of contention involve the potential long-term effects of the proposed tax credit reductions on civic contributions from businesses. Critics highlight that by scaling back these credits, the bill may inadvertently harm programs that rely on such funding, particularly those focused on education and basic skills training. These debates reflect broader conversations concerning the role of tax policy in fostering community support versus the need to ensure sustainable state revenue.