LABI’s Takeaways from the Special Session

President and CEO of Louisiana Association of Business and Industry (LABI), joins the show to discuss the outcomes of a recent special legislative session on tax reform. Will expresses optimism about the session’s results, highlighting significant steps forward for Louisiana’s business environment.

Key achievements include reducing the state’s corporate income tax rate, which was previously the highest in the South, making Louisiana more competitive with neighboring states like Georgia, Alabama, Tennessee, and Florida. This reduction is seen as crucial for attracting and retaining businesses and talent.

The session also addressed the inventory tax, a local tax that businesses can credit against state taxes. New measures give local authorities tools to potentially opt out of this tax, aiming to make the state more business-friendly. House Bill 7 and House Bill 11 introduced provisions to classify business inventory separately and allow local governments to reduce or eliminate the inventory tax, with state funds set aside to compensate for lost revenue.

Another significant outcome is the elimination of the corporate franchise tax, effective January 2, 2026, through House Bill 3. This tax was seen as particularly burdensome because it was levied regardless of a company’s profitability. Eliminating it is expected to make Louisiana more attractive to businesses.

Overall, Will Green views these legislative changes as major victories that will help Louisiana compete more effectively for jobs and investment, fostering a more robust economic environment.