Provide for the public-private partnership investment program and authorizes the issuance of tax credits (EG -$55,000,000 GF RV See Note)
Impact
The introduction of HB 607 is expected to have a significant impact on state infrastructure development by incentivizing public-private collaborations. It aims to address critical infrastructure needs in Louisiana, enabling projects such as bridges and rail improvements. By providing a structured tax incentive, the bill is designed to promote the effective use of public funds and attract private sector investment in public infrastructure projects.
Summary
House Bill 607 establishes a Public-Private Partnership Investment Tax Credit Program in Louisiana aimed at encouraging infrastructure projects within the state. The bill authorizes the granting of tax credits up to $55 million that can offset various state taxes, including income and corporate franchise taxes. These tax credits are spread out, allowing taxpayers to utilize one-sixth of the value from 2025 through 2030, facilitating easier financial planning for both individuals and corporations involved in eligible projects.
Sentiment
The sentiment surrounding HB 607 appears generally positive, with proponents advocating for the benefits of enhanced infrastructure and the economic stimulation anticipated from public-private partnerships. Supporters believe that this approach not only addresses the immediate infrastructure needs but also fosters a collaborative environment between governmental entities and the private sector. However, there may be apprehensions from critics regarding the oversight and effective utilization of tax credits, emphasizing the need for transparency and accountability in the program’s administration.
Contention
Notable points of contention include concerns about the effective monitoring of how tax credits are utilized, with provisions made for third-party verification to ensure that funds are spent appropriately. There may be debates regarding the sufficiency of oversight entities, and how the state can ensure that these financial incentives lead to tangible public benefits without undue risk of misuse. The balance between encouraging private investment and maintaining public accountability will be a critical focus as the bill moves forward.
Creates the Infrastructure and Jobs Creation Tax Credit Program to fund grants for public-private partnership investment in Louisiana. (8/1/21) (OR DECREASE GF RV See Note)
Requests the study of the feasibility of establishing a tax credit program as a funding mechanism for public-private partnership investment in Louisiana infrastructure projects.
Urges and requests the House of Representatives to study the practicality and feasibility of establishing a funding mechanism for public-private partnership investment in Louisiana infrastructure projects
Establishes the La. Rural Jobs Act Tax Credit Program and authorizes a tax credit for rural growth investments made by rural growth funds (RE1 -$56,000,000 GF RV See Note)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.