[Clarification: According to Global Data Systems CEO Chuck Vincent, his company received state backing on 60 percent of a $2 million bank loan his company obtained for a project, which comes to $1.21 million; GDS did not receive a corporate tax credit as the New York Times database indicates. Also according to Vincent, Global Data Systems has since paid back the loan in full.]
An exhaustive New York Times examination of tax credits, rebates and other incentives state governments use to lure new businesses and to keep existing businesses from relocating elsewhere suggests that all incentives are not created equal and, further, that states often do not get a good return on their investment.
The story, accompanied by an interactive gallery, focuses on Texas, by far the most aggressive employer of corporate incentives at $19 billion per year. Indeed, private sector job growth in Texas has far outpaced the rest of the nation, but:
[T]he raw numbers mask a more complicated reality behind the flood of incentives, the examination shows, and raise questions about who benefits more, the businesses or the people of Texas.Compared to our neighbor to the west, Louisiana’s corporate incentives are miniscule — $1.79 billion per year — yet, relative to the rest of the nation and particularly to many other states with considerably larger populations, Louisiana’s largesse to corporations is considerable. The vast majority of incentives to companies offered by Louisiana are in the form of corporate income tax credits, rebates or reductions, followed by property tax abatements and personal income tax credits. The energy industry is the single largest beneficiary, followed by film and manufacturing.;
Along with the huge job growth, the state has the third-highest proportion of hourly jobs paying at or below minimum wage. And despite its low level of unemployment, Texas has the 11th-highest poverty rate among states.
“While economic development is the mantra of most officials, there’s a question of when does economic development end and corporate welfare begin,” said Dale Craymer, the president of the Texas Taxpayers and Research Association, a group supported by business that favors incentives programs.
The company currently has 10 branches throughout Louisiana, including an Ambassador Caffery location which opened last year.
Lawmakers have added $15 million to the attorney general's budget to pay for Louisiana's ongoing legal case against BP for damages caused by the 2010 Gulf oil spill.
The state's jobless rate rose to 5 percent in June from 4.9 percent in May. Louisiana's unemployment rate was 6.4 percent in June 2013.
Long-established private club opening special events venue in failed women’s store at Kaliste Saloom Road and Camellia Boulevard.
High-dollar legal teams are preparing to spar in federal court over the regional levee authority’s historic lawsuit against oil and gas companies, but a panel of volunteers could preempt those efforts when they meet in August.
May sales, the highest on record for the month at $534 million, increased 6.1 percent over May 2013.
Trendy Shi Shi is heading to the Ranch, longtime retail institution Partners’ Ltd. is relocating to Parc Lafayette, and ariel artist haven Vertical Barre is moving downtown.
There’s another debit/credit card scam making the rounds — the second this year — this time via a robo call purportedly from MidSouth Bank.
The 2014 Louisiana Annual Sales Tax Holiday exempts the first $2,500 of the purchase price of each eligible item for non-business use when the customer buys and accepts delivery of eligible property or places property on layaway.
The Lafayette-based home nursing firm will buy 14 home health agencies from a Tennessee company for $10 million in cash.
When Gov. Bobby Jindal signed a controversial bill retroactively banning the Southeast Louisiana Flood Protection Authority-East from filing lawsuits without his permission, many people thought that would put an end to the suit against 97 oil and gas companies.
Citing 76-year-old Garnette Thomas’ age and cooperation, federal judge says no jail time.
“There is something about being out on the swamp when you are alone that sucks the poisons of civilization out of you. It’s a sort of healing power that lets you be yourself again. That’s the kind of thing that would be ruined by a facility like this.”
The project was pushed by former Agriculture Commissioner Bob Odom as a way to help Louisiana's sugar industry, and its financing was approved in 2003 by the State Bond Commission. But it was a failure from the start and left current commissioner Mike Strain saddled with debt at his agency.
Family owned Baton Rouge milk and ice-cream producer aims to put PR nightmare behind it.
For Jennings-based JD Bank, IberiaBank’s buyout of Teche Federal couldn’t have come at a better time.
Louisiana Attorney General Buddy Caldwell says a south Louisiana flood board member who supports the board's environmental lawsuit against the oil and gas industry has reached the end of his term.
The Women Who Mean Business honorees and trailblazers will be featured as a cover story in the September issue of ABiz, which publishes Sept. 15.
Local attorney helps expand service offerings at Andrus Boudreaux Complete Title, which specializes in commercial and residential real estate closings.
Controversial LSU professor David Dismukes has come under fire once again, this time from 20 solar-power groups over his role in a Louisiana PSC study on the costs and benefits of alternative energy.
The state labor department figures released Monday show the initial claims decreased to 2,577 from the previous week's total of 2,604. For the comparable week a year earlier, there were 3,027.
Louisiana officials are refusing to disclose the details of crude oil shipments railroads haul through the state.
Faced with paying a hefty ethics fine, the local real estate developer sells another property, his Wingate by Wyndham hotel.
This year has been a good one for Lafayette’s IT sector, first with April's news of CGI’s new technology center and then Monday's announcement from Silicon Valley-based Enquero that it will soon be opening its first Agile Delivery Center at LITE.
Of the major oil- and gas-producing states, Texas gained seven rigs, New Mexico and West Virginia were up two and Oklahoma added one. Pennsylvania declined by five, California lost three, Louisiana was down two and Colorado and Kansas both were off one.