New markets tax credit bill advanced to attract private capital for small businesses in low‑income areas

Senate Bill 186, which would authorize a state new markets tax credit to attract private capital for small businesses in low‑income and rural Louisiana, was reported favorably by the House Committee on Ways and Means.

Sponsor Senator Reese said the state credit is designed to help Louisiana compete for federal New Markets Tax Credit allocations and to direct private capital toward small businesses that have been turned down by traditional lenders. "This will position Louisiana to compete with other states for the double federal round of new markets this fall when the U.S. Treasury will issue $10 billion in allocations," Reese said. The bill authorizes a capped series of state credits that begin to be redeemable in 2028; the Senate-passed structure sets multi‑year program caps (the bill text lists annual caps across several years). The state credits are nontransferable and nonrefundable.

Tony Toups and representatives from Advantage Capital, which has administered prior rounds, described the credit as a way to unlock immediate private capital — in prior rounds $150 million was raised and invested statewide — and then allow state credits to be used to redeem investors over time. Toups said prior evaluations showed roughly $1.56 of public‑sector return for every dollar of credit invested, and the bill includes reporting requirements so Louisiana Economic Development will measure effectiveness consistently in future rounds.

Committee members asked about local fiscal impacts and whether property tax bases or local assessments rose in areas receiving investment; Toups and Reese said statewide analyses show net positive returns and offered to provide parish‑level breakdowns on request. The committee adopted the bill without apparent changes and reported it favorably.