Governor Bobby Jindal signed legislation today to increase Louisiana's economic competitiveness. HB 729 by Representative Joel Robideaux creates the Corporate Tax Apportionment Program and is part of the Governor's 2012 legislative package.
Governor Jindal said, "If Louisiana is going to continue to outperform the national and Southern economies and maintain our status as one of the states with the best business climates in the country, we must continue to take steps that improve Louisiana's economic competitiveness. Since entering office, we have announced economic development projects that will create more than 46,000 new jobs. This new law will help Louisiana vie for even more economic development projects that will create additional opportunities for our people to pursue their dreams right here in Louisiana."
Prior to Governor Jindal signing HB 729, Louisiana only allowed manufacturers and merchandisers to qualify for single-sales factor apportionment, which bases corporate income and franchise taxes only on the portion of sales that occur within the state. However, states across the country are increasingly offering that opportunity to other companies. This new law will extend the single-sales factor apportionment to highly competitive business development projects in other target sectors including corporate headquarters, logistics/warehousing, data centers, clean technology, destination healthcare, R&D operations, renewable energy, and digital media and software development.