§ 47:1517.1 — Tax incentives; state agencies and state offices that administer tax incentives;

Louisiana § 47:1517.1

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§1517.1. Tax incentives; state agencies and state offices that administer tax incentives;
reporting requirements
A. The Department of Revenue is required to prepare a tax exemption budget each
year that includes state revenue loss for the preceding three years caused by each tax
exemption, deduction, exclusion, and credit authorized by law; however, in addition to the
Department of Revenue, a number of other state agencies administer tax credits and rebates.
Likewise, the legislative auditor's office has statutory authority to conduct performance
audits of state agency programs in order to evaluate the impact, efficiency, effectiveness, and
cost-effectiveness of programs and to identify programs that are vital and in the best interests
of the citizens of Louisiana. In order for the legislature and the legislative auditor's office
to get accurate and complete information regarding how much tax credits and rebates cost
the state, each state agency that administers tax credits and rebates shall report the
information required by this Section to the legislature in every even-numbered year.
B. No later than the first day of April each even-numbered year, the head of each
state agency that administers a tax credit or tax rebate, referred to in this Section collectively
as "tax incentive", shall prepare and submit to the Senate Committee on Revenue and Fiscal
Affairs, the Senate Committee on Finance, the House Committee on Ways and Means, and
the House Committee on Appropriations a report regarding each tax incentive that the agency
administers. The report shall include an assessment of each tax incentive based on the
following criteria:
(1) Whether or not each tax incentive has been successful in meeting the purpose for
which it was enacted, in particular, whether each tax incentive benefits those originally
intended to be benefitted, and if not, those who do benefit.
(2) Whether or not the state receives a positive return on investment from the
business or industry for which the tax incentive is intended to benefit and any other economic
benefits produced by such tax incentive.
(3) Unintended or inadvertent effects, benefits, or harm caused by each tax incentive,
including whether each tax incentive conflicts with other state laws or regulations.
(4) Beginning in 2019, the reports for tax incentives that include a job creation
component shall include the number of employees hired who had a Louisiana driver's license
at the time that they were hired.
(5) Beginning in 2020, in addition to the reports provided for in this Section, the
Department of Revenue shall perform a comprehensive return on investment analysis for all
tax incentives for which the revenue loss was one million dollars or more in the previous
fiscal year. This return on investment analysis shall be performed by the department
regardless of which agency administers the tax incentive. The department's report of the
results shall include a ranking of tax incentives by return on investment.
C.(1) Nothing in this Section shall be construed to require the disclosure of
proprietary or trade secret information that has been submitted to any state agency with
respect to a tax credit.
(2) Nothing in this Section shall be construed to supercede any provision of R.S.
47:1508 with respect to the confidentiality of taxpayer records.
D. Each state agency required to submit a report pursuant to the provisions of this
Section may request from any other state or local agency or official any information
necessary to complete the report required by this Section. Any such agency or official shall
comply with this request.
E. For purposes of this Section, the term "state agency" shall mean any office,
department, board, commission, institution, or division within the executive branch of state
government. Administration of a tax incentive shall be evidenced by a legal requirement or
authorization to undertake any of the following actions for purposes of administration of the
tax incentive:
(1) Promulgation of rules or regulations; in cases where more than one agency has
rulemaking authority, the report shall be prepared collaboratively.
(2) Determination, review, or confirmation of eligibility or qualifications.
(3) Entering into a contract with an entity for purposes of a tax credit.
(4) Conducting oversight or substantial administrative functions for a tax incentive
when the public purpose associated with the tax incentive is within the core mission of the
agency.
F. The Department of Revenue shall develop a format for reports required by this
Section similar to the format used for reporting information contained in the annual tax
exemption budget provided for in R.S. 47:1517. The format shall be made available to all
state agencies for use in preparation of their reports pursuant to the provisions of this Section.
G. The House Committee on Ways and Means and the Senate Committee on
Revenue and Fiscal Affairs shall conduct hearings on the reports, to be concluded no later
than thirty days before the first day that the legislature convenes in each odd-numbered year.
The committees shall analyze and consider tax incentives that have caused revenue loss to
the state in any one of the three previous fiscal years. From time to time, the committees
may report to the legislature findings or recommendations developed as a result of the
hearings.
H. This Section shall not apply to programs which have a sunset date on or before
July 1, 2009.

Legislative History

Acts 2013, No. 191, §1; Acts 2018, No. 87, §1, eff. May 10, 2018.