Advantous Update – Louisiana Legislative Session
As of today, May 29th, 2025, there are only two weeks left of the Louisiana 2025 Regular Legislative Session until final adjournment. Here is an update of what happened this week:
Constitutional amendments related to the former Constitutional Amendment No. 2 continue to move through the legislature with all pending at the Senate:
- HB 366 by Representative Deshotel – authorizes parishes to exempt business inventory – is pending Senate final passage, scheduled for 5/29/2025.
- HB 678 (formerly HB 472) by Representative Emerson – merges Revenue Stabilization Fund and its dedications into the Budget Stabilization Fund – is pending Senate Finance.
- HB 294 by Representative Bagley – removes cap on severance tax to be remitted to parishes– is pending Senate Revenue and Fiscal Affairs.
- HB 473 by Representative Emerson – repeals certain trust funds to make payment to Teachers’ Retirement Fund – is pending Senate Finance.
- HB 295 by Representative Tarver – requires calculation and adoption of the Government Growth Limit on recurring expenses – is pending Senate Finance.
SB 44 by Senator Luneau was voluntarily deferred in House Ways and Means on Tuesday. This bill removed the refundability of the following credits: inventory tax credit for pass-through entities and unincorporated persons, the tax credit for property taxes paid on vessels in the Outer Continental Shelf Lands Act Waters, and the tax credit for restaurants that donate oyster shells for beneficial use. There was interesting discussion at Committee regarding the tax credit for vessels in the Outer Continental Shelf. Representative Orgeron, whose district encompasses Port Fourchon, stated in Committee that if the bill passed, lawsuits from the vessel industry would ensue. He stated that the vessel industry previously brought lawsuits challenging the constitutionality of assessing property tax on these vessels. A deal was then struck with the industry that they would pay the tax to generate revenue for the parishes, but they would require a 100% credit from the state. Representative Orgeron proposed an amendment to remove the vessel portion from the bill, but the bill was voluntarily deferred.
SB 65 by Senator Foil passed the House floor on Wednesday and is now pending Senate concurrence. This bill accelerates the inventory tax credit repeal for C-corps by one year and extends the additional carryforward period from 5 years to 10 years. This bill directly conflicts with HB 383 by Representative Brass, which postpones the credit repeal and phases it out in the following manner: (1) for tax periods beginning on or after July 1, 2026, and ending before July 1, 2027, the credit will be decreased by 50% and (2) for tax periods beginning on or after July 1, 2027, and ending before July 1, 2028, the credit will be decreased by 75%. The credit would then be fully repealed by July 1, 2028. HB 383 by Representative Brass is pending Senate Revenue and Fiscal Affairs. If no agreement is reached between the authors and both bills pass the legislature, the bill that passes last will be the prevailing law.
In other news, HB 507 by Representative Emerson was reported favorably by Senate Committee on Commerce, Consumer Protections and International Affairs on Wednesday. This bill establishes the High Impact Jobs Program, the program to replace the Quality Jobs Program. The program will be a reimbursable grant based on a percentage of annualized wages paid for qualifying jobs. There are three categories for the program: (1) 8% for a project located in a distressed area with wages equal to or greater than 110% but less than 125% of the lesser of the parish average wage or the regional average wage; (2) 18% for a project located in a parish with wages equal to or greater than 125% but less than 150% of the parish average wage; and (3) 22% for a project located in a parish with wages equal to or greater than 150% of the parish average wage. Lastly, there will be a reimbursable grant to retain highly skilled workers with advanced degrees, subject to rule promulgation by the LED. Per testimony at Committee by Representative Emerson and the Louisiana Department of Economic Development, the intent of this program is: (1) to create new jobs and opportunities for current residents in the state and to drive more resident to the state for these higher paying jobs; (2) to incentivize companies to bring their high paying jobs to Louisiana versus another state; and (3) to be fiscal responsible to the state and provide a strong return on investment. The program is modeled this off other states that have had success targeting similar goals.
The other LED program, HB 433 by Representative Deshotel, is pending Senate Committee on Finance. This bill establishes the Site Investment and Infrastructure Improvement Fund to be appropriated to the LED for economic development purposes. This will be a discretionary fund for the LED to grant businesses for site investment and infrastructure improvements. The bill is very vague and merely states that the LED will promulgate rules accordingly.