Budget proposal affects Alt Fuel Tax Incentives

    Bobby Jindal's budget proposal reveals spending, cuts planned for Louisiana

    BY MARK BALLARD| [email protected]
    March 2, 2015

    The administration recently rolled out a budget plan that includes deep cuts which includes suggestions for raising money, including cuts to refundable tax credits such as the alternative fuel tax incentives.

    "The Jindal budget also includes $526 million of new revenue from turning refundable tax credits into nonrefundable tax credits. Taxpayers could still use the credits to pay off their tax bills. But anything above what they owe would stay in the state treasury. The state currently pays the taxpayer the excess amount.

    Refundable tax credits have grown annually at about 10.8 percent, Nichols said, adding that last year, the state wrote checks for $589 million in credits above what taxpayers owed.

    Nichols said converting refundable tax credits in a dozen programs would reduce expenses by $526 million. The hardest hit would be the Inventory Tax Credit, which companies pay to local government for goods on the shelf, office equipment and other business-related properties. The amount paid is then credited against state taxes, with anything above what the taxpayer owes being reimbursed."

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