04/29/2025

Louisiana Legislature Update 4/29/25

By: Patrick Riley
Director of Government Affairs & Assistant General Counsel

The Louisiana Legislature is off to a running start this year, and it’s already clear that 2025 will be a session to watch for Louisiana’s chemical manufacturing industry and its many partners across the state.
More than 900 bills have been filed, touching nearly every corner of the economy, from insurance to energy to tax reform. And with momentum already building behind several major initiatives, the decisions made in Baton Rouge over the next few weeks could have lasting impacts on Louisiana’s competitiveness and growth.
At the Louisiana Chemical Association (LCA) and Louisiana Chemical Industry Alliance (LCIA), we're tracking developments closely to ensure that our industry’s voice is heard, and that Louisiana remains a place where industry can invest and thrive.
Here’s a quick look at the major themes shaping the session so far:

 

Building a Fairer Legal Climate

It’s no secret that Louisiana’s legal environment has long been considered one of the most challenging in the country. Lawsuit abuse, inflated insurance costs, and unpredictable court outcomes have weighed heavily on businesses for years.

This session, however, we’re seeing a real opportunity for change. A package of reforms is moving through the Legislature that would bring greater balance and fairness to how personal injury and auto accident cases are handled. These proposals range from limiting recovery when a plaintiff is found equally or more at fault, to clarifying how damages are calculated and tightening proof standards for injury claims.

For chemical manufacturers and the thousands of vendors and contractors who support them, a more predictable legal environment means lower insurance costs, fewer frivolous claims, and a more stable operating environment overall. LCA is strongly supporting these reforms and working with other business groups to move them across the finish line.

 

Modernizing Louisiana’s Tax System

Tax reform is another area where real progress could be made this session, and the stakes are high for the industrial community.

One of our top priorities is extending the inventory tax credit phase-out over a ten-year period rather than letting it abruptly expire in 2026, which would create uncertainty and risk for manufacturers holding large inventories. This critical bill, HB 383 by Rep. Brass, would provide stability for businesses and help Louisiana remain competitive with neighboring states.

Beyond that, several other bills would modernize how inventory is valued at the local level and overhaul tax treatment for pass-through business entities like S corporations. These efforts are aimed at making Louisiana’s tax code simpler, fairer, and more growth-oriented, something every manufacturer and contractor should be excited to see.

 

Supporting an “All of the Above” Energy Strategy

Louisiana has been a leader in the energy space for decades, and we are well-positioned to continue that “energy dominance” as the global demand for reliable, affordable energy continues to rise. Ensuring that our policies promote continued innovation and diversification is central to LCA’s mission.

This session, we’re seeing new proposals related to solar energy and nuclear energy development. Bills setting new siting rules and fees for large-scale solar projects are moving forward, and while we support smart regulation, LCA is working to ensure that these rules don't discourage investment in renewable energy.

On a very positive note, SB 127 by Sen. Bass, which creates an expedited permitting process for advanced nuclear facilities, cleared its first committee hurdle after being amended to address industry concerns. Nuclear energy could play a vital role in Louisiana’s low-carbon energy future, and it’s encouraging to see the state laying the groundwork for that potential.

At the end of the day, Louisiana’s energy future won’t be built on any one source. It will be an “all of the above” approach. LCA is proud to support a strategy that includes traditional fuels, renewables, and emerging technologies working side by side.

Carbon Capture Takes Center Stage

If there’s one area drawing intense focus this session, it’s carbon capture.
Louisiana is well-positioned to lead the nation in carbon capture, utilization, and storage (CCUS) thanks to our geology, infrastructure, and industrial expertise. But that leadership is far from guaranteed. A wave of new bills proposes everything from local veto authority over CCS projects, to outright moratoriums, to stricter rules on siting and emergency response.

While safety, transparency, and community input are absolutely important, it’s equally critical that Louisiana maintain clear, science-based rules that encourage continued investment in CCS infrastructure. Carbon capture is not just about reducing emissions, it’s about ensuring that Louisiana’s manufacturing sector remains globally competitive in a low-carbon economy.

Tuesday (April 29) has been dubbed “Carbon Day” at the Capitol, with a full hearing set to debate many of these proposals. LCA will be there strongly advocating for a future where Louisiana remains a leader, not a follower, in energy innovation.

 

Looking Ahead

The first two weeks of session have been fast and full of momentum, and the weeks ahead promise even more activity.

From landmark legal reforms to pivotal decisions on tax modernization and carbon capture, the choices made in Baton Rouge this session will help shape Louisiana’s industrial landscape for years to come.

LCA and LCIA will continue to provide updates and advocate aggressively for policies that support growth, innovation, and opportunity. If you have any questions or want to get more involved, we encourage you to reach out. Together, we can help ensure Louisiana remains the best place in the world to build, manufacture, and invest.

Stay tuned! We’ll have much more to share in the weeks ahead!