The New Orleans Hornets will receive a projected $37 million tax break over the next 10 years after the Louisiana senate passed legislation to keep the team at home in the Bayou.
With a vote of 28-7, Louisiana senators approved House Bill 1072 and will send it to Governor Bobby Jindal who is expected to sign it.
The bill provides the Hornets with a tax rebate under Louisiana’s Quality Jobs Program. The Program gives qualifying companies five percent to six percent cash rebate of annual gross payroll for new direct jobs and either four percent sales tax rebate on capital expenditures or a one and one-half percent investment tax credit for qualified expenses. This benefit is estimated at $36.5 million over the next 10 years.
The tax breaks are part of a packages of concessions made by Louisiana to retain the National Basketball Association team playing at New Orleans Arena the through at least 2024.
The bill by Rep. Cameron Henry, R-Metairie, retains the previous law and extends the tax break through 2024.