LSU Manship School News Service

Rep. Richard Nelson suspended his proposal to eliminate the state income tax after discussing it this week with skeptical lawmakers at a House Ways and Means Committee meeting. Instead, Nelson will likely make his proposal the linchpin of his run for governor this year. He said he would strongly advocate for eliminating the state income tax if he is elected.

If voters across the state approve the change, the new annual cap would be $10 million for each parish, up from about $1.1 million now. Terrebonne and Lafourche would stand to benefit from this change.

Legislative committees advanced bills Monday to eliminate a key corporate tax, reduce sales taxes and extend tax incentives for the movie industry. Other bills that moved forward Monday would reinstate an annual three-day sales tax holiday for purchases of guns and ammunition, provide $5 million in tax incentives for crisis pregnancy centers and exempt prescription drugs and insulin from local sales tax.

One bill, authored by Sen. Beth Mizell, R-Franklinton, would establish a tax credit equal to half of the donations to pregnancy centers up to a total of $5 million. It would limit donations eligible for the tax credit to $5,000 per person.