Louisiana Illuminator: Industrial tax break reforms strengthened Louisiana business climate, study finds
“A new analysis found that reforms to Louisiana’s popular industrial tax subsidy appear to have strengthened the state’s business climate. Advocates of the changes made six years ago say the results should allay fears that curtailing the incentive would kill jobs or drive investment out of town.
The study, released Tuesday, focused on the state’s Industrial Tax Exemption Program (ITEP). The Institute for Energy Economics and Financial Analysis (IEEFA) — a think-tank that examines issues related to energy markets, trends and policies — performed the analysis on behalf of Together Louisiana. The umbrella network of over 250 local religious and civic advocacy groups lobbied heavily for ITEP reforms Gov. John Bel Edwards enacted via executive order in 2016…
IEEFA’s study also noted that not only have the reforms not hurt Louisiana’s business climate, they likely strengthened it.
“ITEP reforms appear not to have had a negative impact on industrial capital investment statewide,” the report stated. “In fact, overall capital investment in ITEP-eligible industrial property has increased by 50% during the post-reform period [versus] the five years prior to reform.”
Said Good Jobs First Executive Director Greg LeRoy: “When you strangle your public sector, you poison your business climate.”
Read the full story at Louisiana Illuminator.