Louisiana House Bill HB300

Louisiana 2017 Regular Session

• Introduced: 3/30/17
• Refer: 3/30/17
• Refer: 4/10/17
• Report Pass: 5/15/17
• Engrossed: 5/23/17
• Refer: 5/24/17
• Report Pass: 5/30/17
• Enrolled: 6/7/17
• Chaptered: 6/22/17
• Passed: 6/22/17

Caption

Provides relative to the amount of the research and development tax credit and authorizes transferability of the credit under certain circumstances (EN +$300,000 GF RV See Note)

Impact

The amendments proposed in HB 300 are expected to significantly impact the taxation landscape for businesses engaged in research and development within Louisiana. By allowing the transferability of credits, the bill could facilitate increased capital flow to small and medium-sized enterprises that may not have adequate tax liability to utilize the credits immediately. Such a provision not only encourages small businesses to pursue R&D but also incentivizes collaboration and investment among larger firms, thereby fostering an ecosystem conducive to technological advancement and economic development.

Summary

House Bill 300 seeks to amend the existing research and development tax credit program in Louisiana, adjusting the credit rates based on the size of the employer and introducing the possibility for taxpayers to transfer or sell their tax credits. The bill specifically tailors the credit rates, providing more substantial benefits to smaller businesses while extending the applicability of these credits well beyond previous limitations. By enhancing these provisions, the bill aims to incentivize companies to engage in R&D activities, potentially stimulating innovation and job creation in the state.

Sentiment

The general sentiment surrounding HB 300 appears to be supportive among stakeholders who champion innovation and economic growth. Proponents argue that the bill effectively addresses the needs of smaller businesses in Louisiana by allowing them access to vital tax relief that could enhance their operational capabilities. However, there are concerns raised by some legislators about the state’s fiscal responsibility and whether extensive tax incentives could significantly impede revenue generation over the long term.

Contention

There are notable points of contention associated with HB 300, particularly regarding the fiscal implications of expanding the research and development tax credit program. Critics express concerns that while the intention is to spur economic development, the state must consider the balance between incentivizing businesses and maintaining a stable revenue base for essential services. The debate encapsulates broader discussions on state fiscal policy, business regulation, and the role of government in private-sector innovation.