Louisiana Senate Bill SB18

Louisiana 2018 2nd Special Session

• Introduced: 5/24/18
• Refer: 5/24/18
• Report Pass: 5/29/18
• Refer: 5/30/18

Caption

Creates a tax credit registry for tax credits with carryover provisions. (Item #21) (gov sig) (RE +$205,000 GF EX See Note)

Impact

This bill amends state taxation procedures by requiring that taxpayers with tax credits issued before January 1, 2018, must register these credits on their tax returns within a specified timeframe, or forfeit their ability to claim the carryforward balance. The bill specifies procedures for claiming carryforward balances and includes stipulations for taxpayers whose credits were issued after January 1, 2018. Such provisions are expected to enhance fiscal transparency and help the state budget accordingly, as accurate tracking of carryforward credits can influence future revenue projections.

Summary

Senate Bill 18, proposed by Senator Morrell, provides for the establishment of a centralized tax credit registry in Louisiana specifically for tax credits that have carryforward provisions. The goal of this bill is to enable the Department of Revenue to maintain accurate and comprehensive records of outstanding tax credits issued by the state, which will help ensure that the state is aware of the total amount of tax credits that remain unutilized. The legislation emphasizes accountability in the administration of tax credits, requiring agencies to remit relevant information to the Department of Revenue by January 1, 2019.

Sentiment

The sentiment surrounding SB 18 was generally supportive among those advocating for improved fiscal management and transparency in tax credit administration. Lawmakers and fiscal watchdogs viewed the bill as a necessary step towards enhancing the efficiency of tax credit management. However, there were concerns from some in the advocacy community regarding the implications for taxpayers, especially about the potential burdensome registration process and the impacts on businesses relying on these credits. Despite these concerns, the overarching sentiment favored better oversight of state-issued tax credits.

Contention

Key points of contention included debates about the potential administrative burdens placed on both the Department of Revenue and the taxpayers. Opponents questioned whether the additional registration and reporting requirements might dissuade taxpayers from seeking available credits, potentially impacting the intent behind the tax credit programs. Furthermore, certain stakeholders raised concerns about the confidentiality of the registry data and how it could affect privacy and competitive advantage among businesses receiving such credits. The discussions highlighted fundamental tensions between financial oversight and regulatory impact on local businesses.