Didier Consultants, Inc.

Louisiana Senate Bill No. 3, 2018 Second Extraordinary Session (effective June 12, 2018) delays certain Quality Jobs and Enterprise Zone Rebates.

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.