LaPolitics: What will LABI’s priorities be for this year’s regular session?
Jim Patterson, senior vice president, government relations, Louisiana Association of Business and Industry: We’re not sure, because a lot of it turns on this election coming up on March 29. For example, [Amendment 2] provides a mechanism for local governments to let go of their inventory tax. The kicker is that the tax credit that [corporations] receive for paying their inventory taxes at the state level is going to go away by 2026 regardless. Some [parishes] will certainly do it, others not so much, so we’re going to have to figure out where that leaves us. A number of folks have approached me saying we are thinking about [expanding] a tax credit that exists or legislating a new tax credit. Under this constitutional amendment, you have to get a two-thirds vote of the Legislature for any exemption, exclusion, deduction, or tax credit or rebate, and that is going to be controlled going forward if the people ratify that constitutional amendment. [Note: LABI has not yet taken a position on Amendment 2, though the association’s board is expected to discuss the issue next month.]
What about insurance?
We felt that there were solutions on the table offered last year that were constructive. For whatever reason, the plaintiffs’ bar didn’t agree, the governor didn’t agree, and certain legislators didn’t agree. We are necessarily interested in trying to continue to move the needle on this front. But if the governor is going to say, “I’m not going to sign that,” then is there much point in trying to push forward with it? I think there’s a lot of discussion going on with all the parties about what we can live with or what we think will make a difference, and where those are going to take us remains yet to be seen.
How will LABI approach the carbon capture issue?
I think as a state, we need to learn to value our manufacturers more. We need to help them do the things they need to do to be as clean as possible. It’s almost antithetical when you have individuals complaining about CO2 emissions, but they don’t want to be putting them way down in the ground. I think there needs to be a fair amount of attention given to the economic potential and the fact that there are a lot of ways we can skin this cat. And let’s figure out together how we can make each other comfortable and get to where we can do what we need to do on the carbon capture side, and those who have issues with it can be comfortable that everything has been done to make it safe.
Was your job simpler under a Democratic governor?
Absolutely. Because it’s easy to just say “that’s a bad idea.” It wasn’t easy from the standpoint of trying to advance the interests of the business community. John Bel Edwards was not as receptive as this governor is. In general, we are excited. We’re seeing among the business people of our state excitement over the potential that exists for finally addressing a lot of these things that we’ve talked about. In the special session in November, there were at least seven items in the legislation that was filed that were elements of the strategic plan that we put out.
How do you feel about the state’s tax system following the special session?
I think they did a lot of good things in this session. Was it everything we’d have liked to have seen? Of course not, never is. Should we get everything we want? Probably not, but there’s always going to be folks that would like to see more happen. I really believe right now taxes are less of an issue―by virtue of what they did in the last special session―than insurance right now, and I think you’re going to see the Legislature clamoring for something constructive on that front.
