(KLFY) Oil interests lobbyist are criticizing Governor John Bel Edwards’ decision to veto the tax break passed by the legislature during a special session in October.
House Bill -29 would have cut taxes in order to drill new wells or bring old ones back into production.
Mike Moncla, interim president of the Louisiana Oil and Gas Association, says because of COVID -19, oil and gas prices have gone up. He says the bill would’ve helped with producing more jobs and revenue in the state.
“It was just to incentivize oil companies to get some older wells back into production and the state would then actually get the benefit of that after a six month period of zero severance tax.
Moncla says Governor Edwards felt the bill was unlikely to deliver jobs but, Moncla disagrees.
“We think that by putting people to work, by getting jobs out there that more payroll taxes will hit the state, more people will go out and spend money at restaurants, if they ever open.
Moncla says hopefully in the next meeting, the board can convince governor Edwards to authorize the bill.