LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 67 SLS 202ES 236
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 23, 2020 2:42 PM Author: REESE
Dept./Agy.: Department of Economic Development
Subject: Enterprise Zone Incentives Analyst: Rebecca Robinson
ECONOMIC DEVELOP DEPT EN DECREASE GF RV See Note Page 1 of 1
Authorizes the Department of Economic Development to provide an extension for certain job creation requirements for
enterprise zone incentives and quality jobs incentive rebates due to the impacts of COVID-19 and Hurricane Laura. (gov sig)
Proposed legislation provides an option for companies with an active agreement under the Enterprise Zone Incentives
Program to extend the time period for the creation of new jobs for an additional twelve months due to the impacts of
COVID-19 and Hurricanes Laura and Delta. Provides an option for companies with an active agreement under the Quality
Jobs Program to extend the third annual rebate filing period for an additional twelve months due to the impacts of COVID-19
and Hurricanes Laura and Delta. Companies/Employers must notify the Department of Economic Development of their
preference regarding the option in writing prior to the original certification due date, but no later than December 31, 2021.
Effective upon Governor’s signature.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds DECREASE DECREASE DECREASE $0 $0 $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
There will be no impact to the expenditures of the Department of Economic Development (LED) as a result of the proposed
legislation. The amendments to the Enterprise Zone Incentives Program and the Quality Jobs Incentive Program extends the
timeframe for performance of the relevant contracts and does not affect the workload of LED.
REVENUE EXPLANATION
There will be a reduction in revenue to the State General Fund (SGF) with the amendments to the Enterprise Zone
Incentives Program and Quality Jobs Incentive Program. Both programs allow companies to enter into contracts with the
LED that provide either tax rebates or tax income credits. In order to claim either benefit a business must create a certain
number of net new jobs in a certain time period, as outlined in the contract. The proposed legislation would allow certain
companies to extend the period in which they may create the net new jobs by an additional twelve months. The resulting
impact to the SGF is increasing the time frame in which the state may experience decreased revenue due to the tax rebates
or tax incentives claimed.
Per the original note, LED was unable to identify the number of contracts which could be impacted. However, the updated
information received by the LFO on 10/12/20, indicates there are 13 performance agreements under the Enterprise Zone
Program and 7 performance agreements under the Quality Jobs Program that could take advantage of the additional twelve
month window to claim benefits. The number of entities that will take advantage of the option under the proposed
legislation and the potential amount of the rebate/credits awarded is unknown; therefore, the total reduction in revenue to
the SGF is indeterminable.
There may also be a reduction in revenue to local governmental entities due to the amendment to the Enterprise Zone
Incentives Program. This program allows a rebate of sales and use tax imposed by both the state and local municipalities
and/or parishes. The proposed legislation extends the period in which the net new jobs may be created, thus increasing the
time period in which local municipalities and/or parishes may receive reduced revenue. The magnitude of any such impacts
is unknown at the current time.
They may be a reduction in revenue to the Department of Revenue, Office of Debt Recovery to the extent the proposed
legislation results in a delay in triggering state efforts to recoup or clawback payments made to entities that do not meet
performance standards with regard to the creation of new jobs pursuant to present law.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Staff Director
or a Net Fee Decrease {S}