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| Congress passes "Go Zone" extension |
Lake Charles, LA - The legislative package the House passed along with the Domenici-Landrieu plan would extend tax breaks benefiting Louisianians. Most important among these is the Gulf Opportunity (GO) Zone tax incentive. The GO Zone incentive passed in 2005 has allowed hundreds of businesses to invest in areas impacted by Hurricanes Katrina and Rita and to take a 50 percent tax reduction for new facilities or equipment, jumpstarting recovery by giving businesses an incentive to quickly invest. Current law requires that businesses put new facilities or equipment in place by the end of 2008, but the package will extend the benefit until 2010. “Many businesses need incentives, such as the GO Zone tax breaks, to encourage redevelopment in very difficult circumstances, which is essential to strengthening our economy and rebuilding our communities,” U.S. Senator Mary Landrieu said after the House vote.
“The extension of the GO Zone tax credits empowers the free market to entice and support business development in Louisiana,” said U.S. Senator David Vitter. “These tax credits provide a real and immediate boost to our still-recovering economy."
"The bureaucracy of FEMA and other federal and state governmental programs have not provided real and immediate rebuilding and development,” Vitter added. “With these incentives for the business community, our recovery can move past the red tape and bring genuine opportunity and change back to Louisiana.””
“While we have much to be thankful for in this bill, I am disappointed that many parishes in Southwest Louisiana are now excluded from the GO-Zone Program,” continued Boustany. “I will continue to explore any and all avenues to assist homeowners and businesses in these parishes as they continue to rebound from the effects of Hurricane Rita.”
The new extension only applies to the most heavily impacted hurricane areas, including the parishes Cameron and Calcasieu.
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