Louisiana 2020 2nd Special Session

Louisiana House Bill HB37

Introduced
9/28/20  
Refer
9/28/20  
Refer
9/28/20  
Report Pass
10/5/20  
Engrossed
10/13/20  
Engrossed
10/13/20  
Report Pass
10/19/20  
Report Pass
10/19/20  
Enrolled
10/21/20  
Enrolled
10/21/20  
Vetoed
11/11/20  

Caption

Authorizes an income tax credit for certain businesses whose operations were interrupted as a result of the COVID-19 pandemic (Items #26 and 65) (EN DECREASE GF RV See Note)

Impact

The implementation of HB 37 is significant for Louisiana's economy, particularly in supporting the hospitality industry, which faced unprecedented challenges during the pandemic. By authorizing this tax credit, the state seeks to mitigate the financial impact on businesses that are vital for local economies, potentially leading to job preservation and gradual recovery in the sector. Eligible businesses can carry forward any unused tax credits for up to three years, offering them additional flexibility and support in their recovery efforts.

Summary

House Bill 37 introduces an income tax credit specifically designed for businesses, particularly restaurants and bars, that were adversely affected by the COVID-19 pandemic during the 2020 tax year. The bill allows eligible businesses to claim a one-time credit equal to their annual state license or permit fees, provided their sales from March 1, 2020, to December 31, 2020, were lower than in the same period the previous year. This measure aims to provide financial relief to establishments hit hard by the pandemic's restrictions.

Sentiment

The sentiment around HB 37 has been generally positive among the business community, particularly among those in the hospitality sector who see it as a much-needed lifeline in a time of crisis. Legislators supporting the bill have highlighted its importance in providing immediate economic relief, showcasing a proactive approach by the state government to support vulnerable industries during challenging times. However, some concerns have been raised regarding the overall sufficiency of the relief measures as the pandemic's effects continue to unfold.

Contention

While there is widespread agreement on the need for economic support, there are notable discussions regarding the adequacy and long-term effectiveness of such tax credits. Some lawmakers have questioned whether this measure alone can effectively address the myriad of challenges faced by the industry, emphasizing the importance of comprehensive support strategies. The bill was passed unanimously in the Senate, reflecting a strong bipartisan consensus but also setting the stage for future debates on similar relief measures as the pandemic persists.

Companion Bills

No companion bills found.

Previously Filed As

LA SB72

Authorizes an income tax credit for certain businesses whose operations were interrupted as a result of the COVID-19 pandemic. (gov sig)

LA HB20

Provides relative to income tax deduction for certain educational expenses incurred during the COVID-19 pandemic (Item #26) (EN DECREASE GF RV See Note)

LA SB1

Extends the carryforward period for the inventory tax credit for certain businesses. (1/1/21) (Items #26 and #65) (EN DECREASE GF RV See Note)

LA HB26

Establishes a sales tax holiday to provide relief for recovery as a result of Hurricane Laura and the COVID-19 pandemic (Item #26) (EN -$4,500,000 GF RV See Note)

LA HB5

Establishes an income or corporation franchise tax credit for certain broadband coverage providers (Items #39 & 65) (RE -$50,000,000 GF RV See Note)

LA HB598

Authorizes income tax credits for businesses within certain manufacturing industries (OR DECREASE GF RV See Note)

LA HB64

Repeals the corporate income tax and franchise taxes and prohibits certain corporate taxpayers from claiming certain refundable tax credits (Items #43 & 44) (OR DECREASE GF RV See Note)

LA HB2

Provides for a flat rate for purposes of calculating corporate income tax and terminates certain corporate income tax exemptions, deductions, and credits (Item #4) (EN SEE FISC NOTE RV See Note)

LA AB87

Economic relief: COVID-19 pandemic.

LA SB113

Economic relief: COVID-19 pandemic.

Similar Bills

No similar bills found.