Louisiana House Bill HB31

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

By reducing the eligibility amounts and percentages for several tax credits, HB31 is expected to generate significant changes in tax liability for individuals and businesses alike. The reductions could deter some businesses from hiring new employees and potentially diminish investments in educational or environmental initiatives. Concerns have been raised that such decreases might restrict financial support for crucial projects and programs that foster economic growth and community development.

Summary

House Bill 31 aims to modify various tax credits associated with employment, education, and charitable contributions within Louisiana. This bill proposes reductions to the percentage of tax credits available for job creation, medical expenses, educational contributions, and green projects. These adjustments are anticipated to affect business incentives and state revenue, reflecting broader economic strategies and priorities.

Sentiment

The sentiment towards HB31 appears to be mixed. Supporters may argue that these adjustments are necessary for fiscal responsibility and state budgetary constraints, while opponents express concern that this bill undermines efforts to promote job creation and critical social programs. This polarization indicates a significant debate on how best to balance state budget needs with community and economic advancement.

Contention

Notable points of contention include the reduced tax credits for businesses operating in green industries and for employers who support long-term care insurance premiums. The bill seeks to curtail tax benefits that many view as vital for fostering economic growth, particularly in sectors identified as critical for future sustainability. Critics argue that the bill disproportionately impacts initiatives aimed at helping underprivileged groups and overall community health.