Provides relative to the New Markets tax credit. (gov sig) (EN -$22,500,000 GF RV See Note)
SB 186 revises Louisiana’s New Markets Jobs Act premium tax credit program, which is designed to attract private investment into low-income communities through qualified community development entities. The bill updates the definitions of qualified active low-income community business and qualified low-income community investment, including industry eligibility rules, employee-count limits, and investment caps tied to the date a qualified equity investment is issued. It also changes how applications for qualified equity investment authority are handled, including new certification requirements, denial rules, and a process for partial certification when the full amount of requested authority cannot be granted.
The bill further sets a new round of qualified equity investment authority beginning August 1, 2025, authorizing up to $150 million for certification and allocation. It requires a $500,000 performance deposit from applicants unless they have prior certifications and no prior deposit forfeiture, and it adds a new certification attestation for repeat applicants regarding forfeitures. SB 186 also expands reporting requirements for investments issued after August 1, 2025, requiring annual reports on business location, investment amounts, jobs created and retained, wages and benefits, poverty and unemployment data, and other community impacts.
In practical terms, the bill affects Louisiana Economic Development’s administration of the tax credit program and the eligibility of community development entities and businesses seeking to use it. It also modifies the statutory limits on how much can be invested in a single business, with the cap increasing again for investments issued on or after August 1, 2025. The bill is expected to influence which businesses can receive New Markets financing and how much tax credit authority can be allocated in future application rounds.
The overall sentiment around SB 186 appears strongly favorable. It passed the Senate unanimously and the House by overwhelming margins, indicating broad bipartisan support for continuing and refining the New Markets tax credit program. No committee transcript was provided, so there is no recorded floor or committee debate to suggest significant opposition.
The main points of contention, to the extent they can be inferred from the text, are administrative and program-design issues rather than the concept of the credit itself. The bill tightens application requirements, imposes a substantial deposit, and limits eligibility for applicants with prior deposit forfeitures, which may be intended to reduce risk and improve compliance. It also raises questions about how the new investment caps, partial certification rules, and expanded reporting obligations will affect access to the program for community development entities and the businesses they finance.
SB 186 amends R.S. 47:6016.1, Louisiana’s New Markets Jobs Act premium tax credit statute, by changing eligibility definitions, application procedures, deposit requirements, allocation limits, and reporting obligations. It creates a new $150 million allocation round beginning August 1, 2025, adjusts the per-business investment cap, authorizes partial certification when requested authority exceeds available limits, and requires more detailed post-investment reporting to Louisiana Economic Development. These changes directly affect qualified community development entities, low-income community businesses, and the state agency administering the credit.
The bill appears to have received broad, bipartisan support and little visible opposition. It passed the Senate 37-0 and the House by very large margins, suggesting consensus that the New Markets program should continue with updated guardrails and reporting. The available record does not include committee debate, so the sentiment is inferred primarily from the strong vote totals and the absence of recorded controversy.
Any contention appears centered on program administration rather than whether the tax credit should exist. The bill adds a large performance deposit, denies applications from entities with prior deposit forfeitures, and requires more detailed compliance reporting, which may be viewed as stricter oversight by applicants and program users. The changes to investment caps and partial certification could also affect how much financing individual businesses can receive, but no specific lawmakers or stakeholder groups are identified in the provided record as opposing these provisions.