Louisiana Senate Bill SB217

Louisiana 2021 Regular Session

• Introduced: 4/2/21
• Refer: 4/2/21
• Refer: 4/12/21
• Report Pass: 5/3/21
• Engrossed: 5/11/21
• Refer: 5/12/21
• Report Pass: 5/17/21
• Enrolled: 6/10/21
• Chaptered: 6/14/21
• Passed: 6/14/21

Caption

Provides for the Louisiana Import Tax Credit. (gov sig) (EN -$683,000 GF RV See Note)

Impact

The legislation outlines specific eligibility requirements for receiving port credits, requiring applicants to demonstrate an increase in imported cargo volumes above a specified threshold during their port credit incentive period. The credits amount to a one-time tax benefit, with rates varying based on cargo volumes, incentivizing businesses to input more cargo through Louisiana ports and thereby potentially increasing economic activity in the state. These incentives are expected to foster job creation in the logistics and transport sector, as well as boost the local economy through increased port utilization.

Summary

Senate Bill No. 217, introduced by Senator Harris, establishes the Louisiana Import Tax Credit, aimed at stimulating the utilization of public port facilities for cargo imports and enhancing new port infrastructure for manufacturing, distribution, and warehousing of imported goods. The bill is designed to encourage businesses to increase their import volumes through Louisiana's public ports by providing tax credits based on the volume of cargo imported, thereby positioning Louisiana ports competitively against facilities in other states.

Sentiment

The sentiment around SB 217 appears generally positive among business stakeholders and economic development advocates, as it is viewed as a necessary step to enhance the state's competitive edge in the import sector. However, critics could raise concerns regarding the potential for state revenue loss due to the tax credits being awarded and the implementation complexities tied to ensuring that port credits effectively translate to increased imports and subsequent economic benefits.

Contention

Key points of contention may revolve around the fiscal implications of implementing the credits, as there may be concerns regarding the adequacy of oversight by the Department of Economic Development in evaluating applications and ensuring compliance. There could also be debate about the fairness of the system, particularly regarding which port facility users are prioritized for receiving credits and whether the immediate benefits outweigh any long-term budgetary constraints for the state imposed by these tax incentives.