Louisiana House Bill HB738

Louisiana 2015 Regular Session

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

Caption

Excludes certain businesses from being eligible to participate in the Enterprise Zone Program and dedicates certain savings

Impact

The implementation of HB 738 will direct savings from the limited enterprise zone incentives into the Louisiana Education and Workforce Opportunity Fund. Annually, the state treasurer will be mandated to assess the savings acknowledged by limiting the eligibility and transfer a portion of those savings to support workforce initiatives. A cap of $25 million has been established on the total amount that can be redirected to this fund, indicating a measured approach to financial redistribution while maintaining a focus on education and workforce development within the state.

Summary

House Bill 738 seeks to reform the Enterprise Zone Program in Louisiana by excluding certain business sectors from receiving sales tax rebates and tax credits traditionally granted to eligible businesses. The bill aims to limit the program's benefits specifically to retailers, particularly grocery stores and pharmacies, while prohibiting tax incentives for industries categorized under specific North American Industry Classification Codes (NAICS), including construction, real estate, healthcare, and accommodation services. This legislative change is proposed to enhance the targeting efficiency of state incentives and to ensure that financial support aligns more with sectors that may generate sustainable job growth and economic activity.

Sentiment

The sentiment surrounding HB 738 appears to be cautiously optimistic among supporters, who view the bill as a necessary adaptation to modern economic realities. They argue that limiting incentives to industries more likely to create sustainable jobs will ultimately benefit the state's economy. However, there is some concern from opponents who fear that the exclusion of significant sectors like healthcare and construction could stifle growth in these critical areas. This bifurcation demonstrates a division in perspectives regarding how best to stimulate economic growth while managing public resources responsibly.

Contention

A central point of contention with HB 738 arises from its exclusionary provisions against specific industries. Critics argue that by prohibiting these sectors from accessing tax benefits, the bill may inadvertently hinder local economic revitalization and job creation within industries that contribute significantly to the state’s employment landscape. Additionally, the shifting of funds to the Louisiana Education and Workforce Opportunity Fund has raised questions about how effectively these resources will be utilized to address workforce needs and ensure alignment with the demands of the local job market.