When a company qualifies for the Quality Jobs (QJ) or Enterprise Zone (EZ) program, they may elect either to receive an 1.5% Investment Tax credit or a state sales/use tax rebate on qualified capital expenditures. Previously when a company filed for the state sales/use tax rebate the state was required to rebate 80% of the qualifying claim within 10 days and then rebate the balance less any amounts disallowed in an audit within 3 months.
Under Senate Bill 3, the timeline has changed. Now effective June 12, 2018, the initial rebate of 80% of the qualifying sales/use tax claim shall occur within 60 days and the rebate of the balance less any amounts disallowed in an audit within 6 months. The corresponding timeline for the accrual of interest was also changed from 3 months to 6 months to coincide with the other parts of the bill.
Louisiana’s Third Extraordinary Legislative Session of this year begins on Monday June 18th so we will see if there are any other changes to the incentive programs or the sales/use tax laws.
Stay Tuned and contact us for more information.
Louisiana’s third special session will convene at 4 p.m. on Monday, June 18, 2018, and must adjourn by 6 p.m. on Wednesday, June 27, 2018. This session like the others will consider continuing a portion of the 1% clean penny. In the prior session bills considered .33% and .5% of the current 1% “clean penny” levy. Exemptions and an increased tax on business utilities will likely be on the table.
Stay tuned for updates as this will be the last special session prior to the July 1st “Fiscal Cliff”.
Click on the Proclamation link below
In part the bill would have levied a 2% sales tax on business utilities and would have levied .5% of the 1% clean penny effective July 1, 2018. It creates the potential for another special session before June 30th. It was expected to generate approximately $641 million dollars and had a 2025 sunset provision. Even if enacted, it would have retained the exemption for Farm Equipment, Manufacturing Machinery/Equipment and separately stated installation charges. This bill initially failed on a vote around 11:35pm and soon after HB27 (similar to HB12 but with a .33 of the 1% clean penny) experienced the same fate. Then just prior to the midnight deadline there was an effort to bring HB12 for reconsideration but the time ran out. For more details what this means for your business email firstname.lastname@example.org