The state House Ways and Means Committee could consider a bill today that would grant a $10-per-ton tax credit against state income or corporate franchise tax liability on Louisiana cargo shipped internationally. Any business that imports or exports on an oceangoing vessel breakbulk or containerized cargo through a public port authority would be eligible for the credit.
“We know what Louisiana’s advantages are, but we’re not out there marketing,” says Eugene Schreiber, managing director of the World Trade Center of New Orleans, who outlined House Bill 733 at LSU’s Breakfast to Business today. Schreiber says the measure would provide a competitive advantage to Louisiana ports at a time when neighboring states offer better rates and are substantially upgrading facilities in anticipation of port capacity doubling at the Panama Canal by 2014.
The Baton Rouge Area Chamber is supporting the measure, which Schreiber says was modeled off the state’s success in using tax incentives to grow the movie industry. Louisiana companies export and import 1.6 million tons of cargo a year. Louisiana exports hit a record $41.9 billion last year, mostly due to soaring oil and grain prices, Schreiber says. The state marked the second-largest export increase of any state, up 38.3%. Agricultural products, petroleum and coal, chemicals, processed foods and machinery were top exports last year. Principal export markets included Mexico, China, Japan, the Netherlands and Canada.—Anna Thibodeaux
