Louisiana tax writing committee chair talks about future of lucrative business tax breaks

Louisiana's vast complex web of tax breaks for businesses and industry will begin being scrutinized this summer and will become a major part of the 2025 Regular Session, the lawmaker who leads the House tax writing committee said.

House Ways and Means Chair Julie Emerson, R-Lafayette, said she can see "panic" in the eyes of business owners and advocates when they think the lucrative tax breaks are on the line on an episode of the LaPolitics Report podcast posted Monday.

Emerson, Revenue Secretary Richard Nelson, Republican Gov. Jeff Landry and others say next year’s regular session in which changes to Louisiana tax policy can be considered because it's an an odd-numbered year could host the most significant shift the state has seen in years.

While everything from sales taxes to income taxes will be on the table, Emerson said on the podcast that tax breaks must be part of the formula — especially since the list of the state’s credits and exemptions is considerably larger than the tax code itself. 

“It’s massive,” Emerson told LaPolitics Report host Jeremy Alford.

"When I talk to some of these business groups and talk to them about that, I can see the panic and the fear in their eyes when you start talking about credits and exemptions," Emerson said. "That doesn’t mean they’re going away. It just means maybe it’s time to look at some of them and dig deep and bring people to the table and talk about how they're benefiting Louisiana and attracting jobs and business to the state.”

But the timing on those discussions remains up in the air. Emerson said her committee will begin meeting during the second week of June to investigate tax policy changes ahead of next year’s fiscal session.

This year’s regular session, though, which begins March 11, could be relatively quiet for the tax-writing committee, offering time to dive into tax breaks early. The House Ways and Means staff estimates only 20 to 30 bills will come through the committee in the regular session.

“I don’t look for it to be super extensive,” Emerson said of the Regular Session. “We may discuss some credits and exemptions.” 

As for the upcoming temporary state sales tax portion that expires in 2025, Emerson said, “I don't think the voters have an appetite to continue that.”

Emerson also discussed on the podcast the bills she will carry during the regular session and what her political plans might be following this term in the Legislature.

The LaPolitics Report podcast is now in its fifth season, covering the political waterfront and featuring elected officials, reporters, lobbyists, donors and others.

The podcast is available on Spotify https://open.spotify.com/show/0Oba0FG4AjoTx1l4Qi8XkW  and Apple https://podcasts.apple.com/us/podcast/lapolitics-report/id1731451676.