Louisiana House Bill HB32

Louisiana 2016 2nd Special Session

• Introduced: 6/5/16
• Refer: 6/5/16
• Refer: 6/6/16

Caption

Reduces the amount of certain income and corporation franchise tax credits (Item #36) (OR +$4,300,000 GF RV See Note)

Impact

The impacts of HB 32 on Louisiana's state laws include a decreased financial incentive for businesses to hire individuals from disadvantaged backgrounds, potentially hindering job creation for vulnerable populations. By lessening the available credits, the state may see a decline in new employment opportunities, especially for those who might benefit from increased employment accessibility, like former offenders and low-income individuals. The bill also modifies various other credits impacting charitable contributions and educational support, potentially leading to lesser financial support for educational institutions and programs.

Summary

House Bill 32 aims to amend several provisions concerning income and corporate franchise tax credits in Louisiana, primarily reducing the available tax credits. This legislation seeks to recalibrate the state’s financial obligations by modifying tax incentives previously established to stimulate economic growth, support education, assist low-income residents, and promote rehabilitation of properties. The proposed amendments include reductions in tax credits aimed at encouraging employment for re-entrants from the criminal justice system and credits related to educational contributions and employment of first-time nonviolent offenders.

Sentiment

The sentiment surrounding HB 32 appears to be mixed, with proponents arguing that the reductions in tax credits are necessary to maintain fiscal responsibility and prioritize essential state expenditures. Conversely, opponents express concern that these reductions will disproportionately affect marginalized groups and decrease the state’s attractiveness to businesses that benefit from tax incentives as part of their hiring strategies. The debate has reflected broader economic considerations versus social support obligations that the state must manage.

Contention

Notable points of contention in the discussions about HB 32 revolve around the perceived trade-off between fiscal responsibility and social equity. Supporters of the bill emphasize the need for a leaner tax structure that keeps the budget sustainable, while critics argue that reducing tax credits will undo significant progress made in creating a more inclusive economy that benefits all citizens, particularly those most in need. The bill raises critical questions about the role of government in moderating market behaviors through fiscal policies.