Lawmakers clash over carbon taxes, age-verification apps, film credits

(The Center Square) — From failed carbon tax proposals to sweeping tort reform, Louisiana lawmakers took up a flurry of high-stakes legislation this week, revealing sharp divisions over industry incentives, children’s online safety, and the state’s fiscal future.

Two separate attempts to tax the growing carbon capture and sequestration industry were rejected, stalling efforts to generate local revenue from what some see as a booming sector.

Rep. Shane Mack’s House Bill 44, which proposed a per-metric-ton injection tax on carbon stored underground, failed in committee on a 10-4 vote. Mack, R-Livingston, had already scaled back the proposed tax from $3 to $1 to appease industry groups.

“There are several industrial representatives that are comfortable with a $1 tax,” Mack testified. Revenue would have gone to parishes hosting the storage sites.

But oil and gas lobbyists warned that taxing the industry prematurely could drive projects out of state.

- Advertisement -

Tommy Faucheux of the Louisiana Mid-Continent Oil and Gas Association said it could “chill investment.”

A second measure, House Bill 646 by Rep. Robby Carter, D-St. Helena, proposed a hefty 30% excise tax on CCS operators’ gross proceeds. Carter voluntarily deferred the bill until next year but made his opposition to the technology clear.

“I see us in 50 or 60 years, St. Helena being like the problems with the coast — having a big problem with these wells… and having no money because we didn’t get any money to take care of it,” Carter said.

The legislature also took up the issue of child access to social media.

In a rare moment of consensus, the House unanimously approved House Bill 577 by Rep. Kim Carver, R-Mandeville, requiring app stores like Apple’s App Store and Google Play to verify a user’s age and obtain parental consent before allowing minors to download certain apps. The measure passed 99-0 and now moves to the Senate.

Carver’s proposal shifts the burden of compliance from app developers like Meta to the platforms distributing the apps. It includes exemptions for emergency services, nonprofits and government apps and limits the data that can be collected to what’s necessary for age and consent verification.

- Advertisement -

Still, critics like Google’s Kareem Ghanem argue the bill is a privacy risk that misses the mark.

“These bills would do nothing to address people’s concerns. And in the process, they’re letting Zuckerberg and Meta off the hook,” he said.

A push to repeal Louisiana’s long-standing motion picture production tax credit — and slightly cut income taxes — also failed in the House Ways and Means Committee. Rep. Danny McCormick, R-Oil City, proposed ending the credit by July 2025 and reducing the individual income tax rate from 3% to 2.75%.

“We have to make hard decisions to fund this vision,” McCormick said. “If we keep paying out $125 million a year to a single industry, we’ll never have the room to give that money back to working families.”

The bill fell 10-2, with opponents emphasizing the economic value of the program, which has issued over $500 million in credits since 2018.

Film in Louisiana president Jason Waggenspack called the industry a “job creation machine,” supplying thousands of jobs and boosting tourism and national visibility.

Lawmakers had previously rejected similar efforts. A broader tax reform package adopted last year eliminated other incentives but left the film credit intact, underscoring its political durability.

Meanwhile, one of the most significant tort reform bills in recent years advanced out of committee and awaits a Senate vote. House Bill 431 would overhaul Louisiana’s comparative fault law, barring recovery for plaintiffs found to be 51% or more at fault in personal injury or wrongful death cases.

Under current law, plaintiffs can recover damages even if they’re found to be mostly at fault, though awards are reduced proportionally. The new bill would establish a hard cutoff at 51% and require juries to be instructed on this change when weighing comparative fault.

The measure, effective Jan. 1, 2026, is expected to have a major impact on civil litigation in the state, with supporters arguing it will curb frivolous lawsuits and reduce insurance premiums. Critics warn it could prevent injured parties from obtaining fair compensation.

HB434 also passed committee.

Current law blocks uninsured drivers from collecting the first $15,000 in injury damages and $25,000 in property damage. The proposed legislation raises that threshold to $100,000 for both.

That means if a driver without insurance is hurt or suffers losses in a crash, they wouldn’t be able to recover the first $100,000 in damages — even if the other driver is at fault.

The bill also requires uninsured drivers to pay all court costs if they sue and are awarded $100,000 or less.

Supporters say the measure is meant to discourage people from driving without insurance. The bill had a total of 48 opponents.

But opponents argued the bill unfairly punishes low-income drivers who already face tough choices.

Personal injury attorney Blake David called the measure “a whopping deterrent for the poorest people in Louisiana,” saying it would hit uninsured drivers hardest even when they’re not at fault.

“They don’t get to get [their car back], even though someone blew a stop sign and hit them,” David said. He also questioned the bill’s effectiveness, arguing most uninsured drivers are unaware of the law and won’t change behavior based on it.

Instead of reducing rates, David said, the bill would just shift more costs to crash victims while insurers continue to post record profits.

spot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Fiery Fallout: 242 Feared Dead in Air India Plane Crash

All 242 people on board Flight AI171, operated by...

Report: Wisconsin receives less in federal funding than most states

(The Center Square) – Wisconsin receives less in federal...

President Trump revokes Biden EO related to the lower Snake River dams

(The Center Square) – President Donald Trump signed a...

Tennessee lawmakers question virtual school funding

(The Center Square) – Tennessee lawmakers are questioning why...

Higher bonds floated to help the state’s orphan well problem

(The Center Square) - Pennsylvania has seen 1,154 oil...

Trump, in Oval Office, says 2025 hurricane season is FEMA’s last

(The Center Square) – North Carolinians and other Atlantic...

Hochul grilled by House panel over New York ‘sanctuary’ policies

(The Center Square) – Democratic New York Gov. Kathy...

Cortez Masto introduces bill to help tribal economies

(The Center Square) - U.S. Sens. Catherine Cortez Masto,...

More like this
Related

Fiery Fallout: 242 Feared Dead in Air India Plane Crash

All 242 people on board Flight AI171, operated by...

Report: Wisconsin receives less in federal funding than most states

(The Center Square) – Wisconsin receives less in federal...

President Trump revokes Biden EO related to the lower Snake River dams

(The Center Square) – President Donald Trump signed a...

Tennessee lawmakers question virtual school funding

(The Center Square) – Tennessee lawmakers are questioning why...