JEDCO

Business & Tax Incentives

Industrial Tax Exemption Program

EFFECTIVE JUNE 24, 2016, CHANGES APPLY TO THE INDUSTRIAL TAX EXEMPTION PROGRAM, PURSUANT TO AN EXECUTIVE ORDER FROM THE LOUISIANA GOVERNOR’S OFFICE. VIEW THE EXECUTIVE ORDER HERE.

NOT ALL CHANGES EFFECTIVE JUNE 24, 2016 ARE REFLECTED BELOW. PLEASE CHECK BACK AGAIN AS CHANGES ARE ONGOING.

The Industrial Property Tax Exemption abates, up to ten years, local property taxes (ad valorem) on a manufacturer’s new investment and annual capitalized additions.

This exemption applies to all improvements to the land, buildings, machinery, equipment and any other property that is part of the manufacturing process. The land itself is not eligible for tax exemption.
NOTE: May require advance notice to Louisiana Economic Development, Office of Business Development, Business Incentive Services.  See Application Procedure section below for more details. 

The Facts

This is Louisiana’s original incentive program, for capital investments, and is for manufacturers only. It may be used by manufacturers new to the State as well as new investments and miscellaneous capital additions to existing facilities in Louisiana.

Eligibility

The Industrial Property Tax Exemption abates, up to eight years, local property taxes (Ad Valorem) on a manufacturer’s new investment and annual capitalized additions. This abatement applies to eligible improvements to the land, buildings, machinery, equipment, and any other property, that is part of the manufacturing process. Granting this incentive must be considered to be in the best interest of the State of Louisiana by the Board of Commerce and Industry. Tax exempt property must remain on the plant site at all times. The land itself is not tax exemptable.

Benefits

An approximate one year benefit of this program is calculated as follows:

Cost of Capital Additions (less obsolete/replaced equipment)

x    Application Fee Tax Rate

÷    10

=    Annual Approximate Property Tax Savings

Application Procedure
  • A manufacturer applying for this program must submit an Advance Notification if an individual project is to be greater than $5 million, or the business is also applying for another incentive program benefits for the same project. An Advance Notification and a $250 fee must be filed and received by Louisiana Economic Development, Office of Business Development, Business Incentives Services prior to starting construction, purchasing, installing equipment, or hiring.
  • If the project costs less than $5,000,000, takes no longer than 18 months to complete and no other incentive programs associated with the project are being applied for, then an Advance Notification is not necessary. The project qualifies as a Miscellaneous Capital Addition. Complete the project and submit the ITEP Application online within 90 days.
  • Contracts may be granted for a maximum of 5 years. An option to renew the exemption for an additional 5 years is available. Note: An exemption cannot be granted for more than a total of ten years on any investment.
  • All applications which include replacement equipment must reduce the application amount by subtracting the cost of the original item from the new replacement item(s).
  • Click here for a PDF version of the ITEP Application.
  • Application and other filing fees apply.

JEDCO
Margo Ruiz
Economic Information and Incentives Coordinator
Phone: (504) 875-3920
Fax: (504) 875-3923
Email: mruiz@jedco.org

LOUISIANA ECONOMIC DEVELOPMENT
Kristin Cheng
Program Administrator
Phone: (225) 342-2083
Fax: (225) 342-0142
Email: Kristin.cheng@la.gov
Website: www.louisianaeconomicdevelopment.com