Provides for the Louisiana New Markets Jobs Act. (Item #19) (EN -$41,250,000 GF RV See Note)
Impact
The bill's revisions are expected to enhance its effectiveness by increasing the amount of qualified equity investment authority available for certification and allocation. With an additional $75 million allocated for investments starting on August 1, 2020, this legislation seeks to increase funding directed towards business sectors that can generate jobs and improve community resources, particularly in low-income areas and rural parishes. The definitions added to the law will help clarify eligible businesses and ensure that the funding intended for economic uplift is directed appropriately.
Summary
Senate Bill No. 13, known as the Louisiana New Markets Jobs Act, aims to stimulate economic development by providing tax credits to investors in qualified active low-income community businesses located in Louisiana. The bill modifies the existing eligibility criteria for tax credits associated with qualified equity investments, which are intended to attract capital to underserved areas. It specifically outlines adjustments to applicable credit percentages depending on the timing of the investment, effectively incentivizing investment in businesses that meet established criteria.
Sentiment
The sentiment surrounding SB 13 is largely positive among legislators who believe it represents a significant opportunity to bolster economic growth within Louisiana's low-income communities. Supporters argue that by simplifying criteria and expanding tax incentives, the bill will not only attract more investors but also facilitate the development of locally-owned businesses. However, there are ongoing debates about the efficacy of tax incentives in truly addressing the needs of these communities versus directing funds towards larger corporate entities.
Contention
Some points of contention regarding SB 13 revolve around potential misuse of tax credits and whether the anticipated benefits will effectively reach the intended low-income communities. Critics of the bill express concerns regarding the criteria for businesses eligible for these investments, positing that larger corporations may disproportionately benefit from tax incentives. The balance between incentivizing investment and ensuring equitable distribution of economic benefits remains a critical topic of discussion as the bill moves through legislative processes.
Provides for eligibility for the Angel Investor Tax Credit for investments made in federal opportunity zones. (Item #19) (gov sig) (EN DECREASE GF RV See Note)
Dedication of unclaimed property funds and creation of Louisiana Unclaimed Property Permanent Trust Fund. (Item #10) (See Act) (EN -$25,000,000 GF RV See Note)