JEDCO

Business & Tax Incentives

Industrial Tax Exemption Program

THE FACTS

  • Provides a local property tax exemption to manufacturers on new qualifying investments including improvements to the land, buildings, machinery, equipment, and any other property that is integral to the manufacturing process.

ELIGIBILITY

  • Businesses must be classified as a manufacturer or related to the manufacturing project in order to receive the benefits of the ITEP program. ITEP is only available for activities related to manufacturers.
  • A manufacturer, as identified by the federal government, has a North American Industry Classification System (NAICS) code that begins with 31, 32 or 33. The NAICS is used as a preliminary qualification criterion. A detailed description of the activities to be considered manufacturing is must be provided by the company.
  • The program can be used by manufacturers new to Louisiana and is also available to existing manufacturers in Louisiana with new investments to existing facilities.
  • For more information, please view the Industrial Tax Exemption Program Rules established by Title 13 of the Louisiana Administrative Code.

BENEFITS

  • Contracts may be granted for up to five (5) years at up to 100% with a potential option to renew for up to three additional three (3) years at up to 80% as determined by the Jefferson Parish Council, Jefferson Parish School Board, Jefferson Parish Sheriff, and Louisiana Board of Commerce and Industry. If company is located within limits of a Municipality, approval from the applicable Municipal Council is required as well.
  • Exemption awards (percentage and term) are based on the project’s measure against the Jefferson Parish Industrial Tax Exemption Rubric which sets a minimum exemption term and percentage amount based on job creation and investment benchmarks and allows a bonus increase in percentage of exemption provided the project meets specific Jefferson Parish community and economic development objectives.
    • Jefferson Parish Bonus Criteria Includes:
      • EDGE Industry Cluster or support business
      • National or international headquarters facility
      • Average annual wage of net new jobs created are 125% above the latest available average annual wage per the Bureau of Labor Statistics (2016 average annual wage is $46,988)
      • Increase jobs by at least 20% at site (minimum ten jobs in Tier One, minimum 15 jobs in Tier Two)
      • Project is the result of an adaptive reuse of a site or building, or project occupies a site or building that has been vacant for at least two years
      • At least 50% of net new hires reside in Jefferson Parish
      • At least 75% Jefferson Parish-based contractors are used by applicant during construction of project (% based on estimated construction valuation of the project)
      • Business is located in a distressed region – which is further defined as a census tract block group that is below the state median per capita income, based upon the latest federal decennial census – or an Enterprise Zone.

APPLICATION PROCEDURE

  • Submittal of an Advance Notification and a $250 non-refundable fee through Louisiana Economic Development’s FastLane website (https://fastlane.louisianaeconomicdevelopment.com/) is required prior to beginning the project; otherwise, the investment(s) will be ineligible.
  • Submittal of a Jefferson Parish Industrial Tax Exemption Program Application to JEDCO is required. Please email completed document to Margo Ruiz: mruiz@jedco.org and mail original application to Margo Ruiz at address listed below.
  • In order to receive consenting resolutions of the Jefferson Parish Council and Jefferson Parish School Board, and an approval letter from the Jefferson Parish Sheriff, the company is required to submit a written request for participation in the program to all three tax-levying bodies as part of its application to JEDCO. If company is located within limits of a Municipality, a consenting resolution must be requested from the applicable Municipal Council as well.  Below is a link to a template letter and contact name for each entity:

For questions or more information, please contact:

JEDCO
Margo Ruiz
Economic Information and Incentives Coordinator
700 Churchill Parkway
Avondale, LA 70094
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