Industrial Tax Exemption Program 
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 ten years, local property taxes (Ad Valorem) on a manufacturer's new investment and annual capitalized additions. This abatement applies to all 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 exemptible.
Benefits
One year benefits of this program are calculated as follows:
One year benefit = Cost of Capital Additions (less obsolete/replaced equipment)
x 15 percent (business assessment rate)
x Millage rate*
= Property Tax Exemption (for one year)
*(Property tax millage can be obtained from the Parish Assessor's office.)
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 Enterprise Zone benefits for the same project. An Advance Notification and a $100 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.
- A manufacturer may submit a Miscellaneous Capital Addition (MCA) Application to Louisiana Economic Development, Office of Business Development containing a compilation of small expenditures completed by the end of a calendar year and not greater than $5 million per application.
- 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).
For additional information, please contact:
Jefferson Parish
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JEDCO Economic Development Services
700 Churchill Parkway
Avondale, LA 70094
Phone: (504) 875-3920
Fax: (504) 875-3923
State of Louisiana
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Louisiana Economic Development
Business Incentives Services
P. O. Box 94185
Baton Rouge, LA 70804-9185
Phone: (225) 342-6442
Fax: (225) 342-0142
www.louisianaforward.com
