Louisiana House lawmakers passed legislation Monday that would phase out the state’s corporate franchise tax revenue and partially offset the loss in state revenue by cutting a lucrative tax credit program.
Louisiana House Lawmakers Passes Legislation In Cutting Franchise Tax (PHOTO: The Advocate)
Legislation In Cutting Franchise Tax Passes By Louisiana House Lawmakers
Monday, the lawmakers from the House of Louisiana passes the legislation in phasing out the states’ corporate franchise tax revenue. The are two proposals that was passed in the House, these proposals are from Sen. Bret Allain, R-Franklin, which include Senate Bill 1 and Senate Bill 6 tied together and this proposal both passed the House.
The Senate Bill 1 version would actually repealed to corporate franchise tax in order to help some corporate tax give an opportunity in order to do business in the state.
A full outright repeal would have decreased Louisiana’s revenues for about $1.033 billion in the past 5 years. Sen. Bret Allain proposed that the bill should gradually reduce the franchise tax rather than increases it. It should reduce over 25% each year combining the corporations income and the franchise tax collections exceed $600 million with the excess deposited into the state’s Revenue Stabilization Trust fund.
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Louisiana House Lawmakers Approved The Legislation In Cutting Franchise Tax
The bill’s fiscal note has and estimate reduction of $631 million in franchise tax revenue over five years. though Senate Bill 6 offsets a big loss by slashing the Quality Jobs tax credit program. The Quality Jobs program, administered through Louisiana Economic Development (LED), offers payroll tax rebates to certain businesses for creating or retaining jobs — an incentive program that costs the state millions every year with a qu The package will return to the Senate before heading to Gov. John Bel Edwards for approval.
