Louisiana Gov. Bobby Jindal (R) has proposed to change some of the state's individual and business tax credits from refundable to nonrefundable, which would save the state $526 million, according to his fiscal 2016 executive budget proposal.
Jindal released his budget proposal on February 27. The budget would include a total funding decrease of $1.2 billion, including the cut in refundable tax credits, according to a statement released after Jindal's announcement.
"Louisiana paid more than $589 million to companies and individuals as a result of these credits," according to the budget proposal. "That means that beyond reducing a company's tax bill, the state has actually provided revenue subsidies for some businesses."
The statement said this would not increase any current tax obligations for Louisiana taxpayers, but would create "a recurring solution that will limit the possibility of our credits acting as revenue-generators and reduce the potential for abuse of the tax code."
- inventory tax credit;
- wind and solar energy systems credit;
- ad valorem credit for certain natural gas;
- ad valorem credit for offshore vessels;
- credit for vehicle conversion to alternative fuel;
- milk producers credit;
- musical and theatrical productions credit;
- research and development credit;
- telephone company property credit;
- sugarcane trailer conversion credit;
- angel investor credit; and
- historic residential rehabilitation credit.
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