La. lawmakers agree to regulations for tax breaks

Louisiana lawmakers agreed today to regulations that will govern a package of new business tax breaks pushed by Gov. Bobby Jindal, even as they continued to worry about how much tax breaks are costing the state treasury.
Louisiana’s economic development secretary will be able to offer three tax incentives to businesses considering whether to relocate or expand here. They include rebates for payroll, relocation costs, and corporate income and franchise taxes. A joint House and Senate committee overwhelmingly agreed to the rules overseeing the tax breaks, which were passed by lawmakers earlier this year. Objections to some of the regulations today came from two senators who pushed for more details from LED about what the tax breaks could cost and which independent economist will be chosen to analyze projects slated to get the incentives. “I want to know if these job creations are actually [happening] or if they’re just up there in that dreamland,” says Sen. Bob Kostelka, R-Monroe. LED Deputy Secretary Steven Grissom says the tax break programs will enhance Louisiana’s ability to compete for certain types of business projects, like corporate headquarters, digital media companies and data centers. Grissom says the tax breaks will only be used if the businesses will generate more tax income through new jobs and economic activity than the rebates will cost the state in lost revenue. Read the full story here.