Tax Incentive Evaluation Law: Louisiana

Fact Sheet January 21, 2015 Read time:

Projects: Economic Development

This page is no longer being updated. As of June 15, 2017, newer tax incentive evaluation fact sheets are available here.

To ensure that economic development tax incentives are achieving their goals effectively, many states have approved laws requiring regular, rigorous, independent evaluations of these programs. For a list of states that have passed evaluation laws since the start of 2012, click here.

Louisiana

H.B. 316, enacted June 10, 2013

What it does

Requires evaluation of all major tax incentives
State agencies report annually on tax incentives. The reports identify incentives' intended purpose, beneficiaries, and unintended consequences.
Connects reviews to policymaking
House and Senate committees hold hearings on the evaluations every other year, ensuring that lawmakers regularly discuss the results. The committees review any incentive that resulted in lost revenue in the previous three fiscal years and may provide recommendations to the Legislature.

Requires evaluation of all major tax incentives

State agencies report annually on tax incentives.

The reports identify incentives' intended purpose, beneficiaries, and unintended consequences.

Connects reviews to policymaking

House and Senate committees hold hearings on the evaluations every other year, ensuring that lawmakers regularly discuss the results.

The committees review any incentive that resulted in lost revenue in the previous three fiscal years and may provide recommendations to the Legislature.

Excerpt from Louisiana’s law: State lawmakers use evaluations to review incentives

The House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs, referred to in this Subsection as "committees", shall conduct hearings on the reports every odd-numbered year, to be concluded thirty days before the beginning of the Regular Session of the Legislature of Louisiana. 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.