Some tax credits restored as Louisiana Gov. Landry's tax plan shifts
Nov 19, 2024
BATON ROUGE, La. (BRPROUD) — Gov. Jeff Landry’s tax plan faces even further changes as amendments are added on to the bills as they head to the full Senate for more debate.
Some of the key changes that were tacked on to the bills are part of negotiations on how to make up the revenue for the major individual income tax cut and ways for lawmakers to feel more confident in their votes.
HB1, the bill that enables the $1.3 billion individual income tax cut by lowering it to a flat 3% for anyone making more than $12,500 annual. The original proposal would sunset a number of tax credits that raised alarm for a number of industries.
Namely, the film industry brought hundreds of people to the capitol over the weekend to advocate for the restoration of their tax credit that they say creates thousands of jobs and brings millions to the state.
The Senate Revenue and Fiscal Affairs Committee amended the bill to put back the tax credits for film at $125 million and the historical preservation tax credit at $85 million.
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HB2, the corporate income tax, was amended to change from a cut to 5.5% to a flat 6% rate without further reductions unless the legislature votes on future legislation to do so.
The constitutional amendment that voters will get to decide on, should it pass through the whole procedure, would eliminate multiple funds to use the money for paying down teacher retirement debt. Those savings will be used for making the teacher pay stipend permanent.
The amendment originally proposed removing prescription drugs from being subject to local sales tax. But it was amended in the Senate to allow the locals to still collect that tax after many parishes had concerns it would heavily impact their budgets. Lawmakers said they want to keep working on the bill to potentially bring back the exemption for prescription drugs.
It is anticipated more changes will be made to the core bills of the tax reform package when they reach the Senate floor. The special session can only last until Nov. 25.
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