2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:1517.1. Tax incentives; state agencies and state offices that administer tax incentives; reporting requirements

RS 47:1517.1 - 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.
Acts 2013, No. 191, §1; Acts 2018, No. 87, §1, eff. May 10, 2018.