Louisiana House Bill HB22

Louisiana 2016 1st Special Session

• Introduced: 2/14/16
• Refer: 2/14/16
• Report DNP: 2/23/16
• Engrossed: 3/6/16
• Report Pass: 3/7/16
• Enrolled: 3/9/16
• Chaptered: 3/16/16
• Passed: 3/16/16

Caption

Repeals the three-year sunset of certain reductions to tax rebates (Item #11) (EN SEE FISC NOTE GF RV See Note)

Impact

The implications of HB 22 are significant as it aims to foster an environment conducive to economic growth by providing ongoing incentives to businesses operating in Louisiana. By extending the deadline for tax rebate applications, the bill is expected to generate increased participation among eligible entities, potentially boosting state revenues and encouraging investments. The prospect of these incentives not only aims to support existing businesses but also to attract new enterprises to the state, thereby enhancing job creation and economic dynamism.

Summary

House Bill 22, introduced by Representative Jackson, seeks to amend existing tax law related to incentive rebates in Louisiana. The bill principally intends to repeal a three-year sunset provision applied to certain tax rebate reductions, specifically those established under Act No. 126 of the 2015 Regular Session. This repeal is designed to extend the application period for filed tax rebates, thus allowing more time for individuals and businesses to submit their applications and potentially leading to greater financial benefits for a broader range of applicants.

Sentiment

The sentiment surrounding HB 22 appears to be generally positive among supporters, who advocate that the bill's provisions will enhance local business growth and encourage spending. Legislators expressing support contend that the bill is vital for maintaining Louisiana's attractiveness as a business-friendly state. However, there are concerns regarding the long-term sustainability of such financial incentives, with some critics arguing that while beneficial in the short term, they may lead to budgetary strains in the future if not accompanied by careful fiscal planning.

Contention

Notable points of contention during discussions include debates over the potential long-term fiscal impacts of extending tax rebates and concerns about fairness and equity in how these incentives are applied across different sectors. Some legislators argue that the bill may disproportionately benefit larger companies at the expense of smaller businesses or lead to reliance on state-funded rebates rather than fostering genuine economic resilience. Hence, while the intention of HB 22 is to bolster economic development, its broader effectiveness will be scrutinized in the context of future budgetary constraints.