[StBernard] Governor Blanco, Chairman Francis Urge Congressional Delegation to Support GO Zone Extension

[Westley Annis]

Governor Blanco, Chairman Francis Urge Congressional Delegation to Support GO Zone Extension

Legislation Provides Important Incentives for Economic Development and Housing


BATON ROUGE, La. - Governor Kathleen Babineaux Blanco and Louisiana Recovery Authority (LRA) Chairman Norman C. Francis renewed their push for Louisiana's Congressional Delegation to support extending several key provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005. They are calling on Congress to move this week to address the bonus depreciation, housing rehabilitation and small business assistance programs. And they are urging them to take up additional extensions as soon as the new Congress convenes. Set to expire in 2008, the historic legislation spurred investor confidence and prompted immeasurable economic development and housing rehabilitation investments for the state following Hurricanes Katrina and Rita.

"First and foremost, I want to thank our delegation for their leadership and continued commitment to helping our great state recover from two of the worst disasters in American history," said Governor Blanco. "Now, I am asking for their consideration on this important legislation that provides valuable incentives for economic development and the housing sector."

"The GO Zone has served as a catalyst for billions of dollars in investment, not just in South Louisiana, but across the Gulf Coast region," said Dr. Francis. "We want to continue encouraging the private sector to bring and keep their businesses here - but we need Congress's help to make that happen." 

Governor Blanco and Dr. Francis today sent a letter to the delegation, asking them to support the following provisions, in addition to extending the Bonus Depreciation: 

*	Extend until December 31, 2010 the deadline for placing Low Income Housing Tax Credit developments in service, as well as the deadline for benefits to these housing developments available through the GO Zone Bonus Depreciation and GO Zone LIHTC "Basis Boost."
*	Extend until December 31, 2010 the increased expensing provisions under section 179, which especially benefit small businesses seeking to recover. It is currently required to sunset on December 31, 2007.
*	Extend the five year carry-back of net operating losses, currently timed to sunset on December 31st, 2007. 
*	Extend the special allowance for certain property acquired on or after August 28, 2005, which are currently made to sunset for Equipment on December 31, 2007 and for Structures on December 31, 2008.
*	Extend the benefit for partial expensing for certain demolition and clean-up costs, which currently will sunset on December 31, 2007.
*	Extend and expand to petroleum products, the eligibility for expensing environmental remediation costs, which will currently sunset on December 31, 2007.
*	Extend the treatment of net operating losses that are attributable to GO Zone losses.
*	Extend the application of New Markets Tax Credit to investments in community development entities serving the GO Zone.
*	Create additional benefits for Small Businesses by allowing small issue bonds of $3,000,000 or less be bank qualified under Section 265(b)(3) of the Internal Revenue Code. 
*	Extend the Worker Retention Credit and include these benefits for the offshore employees based out of the affected GO Zone parishes to qualify for the employee retention credit.
*	Extend the Real Estate Placed in Service Date to December 31, 2010 for projects which started construction by December 31, 2008. 

The letter to the delegation can be found here <http://lra.louisiana.gov/assets/GoZoneLettertoCongress120106.pdf> .

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives, destroying more than 200,000 homes and 18,000 businesses and inflicting about $25 billion in insured losses. The Louisiana Recovery Authority (LRA) is the planning and coordinating body that was created in the aftermath of these storms by Governor Kathleen Babineaux Blanco to lead one of the most extensive rebuilding efforts in the world. The LRA is a 33-member body which is coordinating across jurisdictions, supporting community recovery and resurgence, ensuring integrity and effectiveness, and planning for the recovery and rebuilding of Louisiana.

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