tax incentives

Treasurer Says Legislature Cooking Budget Wrong

Jun 2, 2015

State Treasurer John Kennedy says when it comes to fixing the state budget, the legislature is doing it all wrong.

“Your goal ought not to be, ‘We need to get some more cash in this place.’ Your goal really ought to be, ‘Let’s make a tax system that looks like somebody designed it on purpose’,” Kennedy told the Baton Rouge Press Club Monday.

Lawmakers have advanced bills for temporary fixes, like suspending sales tax holidays, limiting film tax credits, and taking 20% off the top of the refundable business inventory tax credit. Kennedy said he’s disturbed by the lack of an organized plan to actually cure the state’s fiscal problems long-term.

Severing the Fracking Tax Break

Mar 13, 2015

Should Louisiana repeal its 20-year-old severance tax exemption for horizontal wells? LSU economist Jim Richardson believes the time for that particular economic incentive has passed.

“In 1994, nobody knew how to do horizontal drilling. Today, everybody knows how to do horizontal drilling,” Richardson says of the tax break implemented to encourage what was then a new technology.

Louisiana Mid-Continent Oil and Gas Association president Chris John says the severance tax exemption for fracking wells keeps Louisiana in the shale production game.

Rick Perry wants your business.

The Republican governor has been turning up in other states, touting the wonders of Texas and promising business owners they'll find lower taxes and more manageable regulation there.

"It does help get the word out to business leaders that may be frustrated," says David Carney, a longtime consultant to Perry. "Going in person can get literally hundreds of thousands of dollars of free media coverage."

State lawmakers are being more sensitive to how they spend money.

A bill containing minor change to the state’s Enterprise Zone program failed to pass in the House Thursday.

The Enterprise Zone is an incentive program that works to encourage businesses to expand in rural parts of the state. The bill would have changed the definition of a “multifamily residential housing”, making bigger apartment complexes eligible for a tax credit.