Restoration Tax Abatement Program
Commercial property owners and homeowners who substantially expand, restore or improve an existing structure located in a qualifying district, i.e. Economic Development District, Historic District or a structure registered as a Historic Place, may be eligible for a five-year deferred assessment of the ad valorem property taxes on the improvements. Jefferson Parish has several eligible districts on the east and west banks.
Note: Requires submittal of Advance Notification and a $250 non-refundable fee to Louisiana Economic Development. The Advance Notification can be submitted electronically via the Louisiana Economic Development’s Fastlane website.
The Restoration Tax Abatement (RTA) Program is an economic development incentive created for use by municipalities and local governments to encourage the expansion, restoration, improvement, and development of existing commercial structures and owner-occupied residences in Downtown Development Districts, Economic Development Districts or Historic Districts.
The RTA program does not exempt the acquisition cost of the structure. In addition, only equipment that becomes an integral part of that structure can qualify for this exemption (not machinery and equipment used in the business, ie: retail gondolas or movable property such as furniture and fixtures, etc.) Note: an Enterprise Zone or Economic Development Zone is not a qualifying district. Please contact JEDCO to determine if your property is within a qualifying district at (504) 875-3920.
- In addition to the state’s RTA eligibility requirements, JEDCO and Jefferson Parish require the applicant to submit sufficient documentation to show that the renovation will be substantial. Projects for the purpose of reconditioning, refurbishing or repairing are not considered eligible.
The program grants a five (5) year deferred assessment of the ad valorem property taxes normally assessed on renovations and improvements. Commercial property owners and homeowners who expand, restore, improve or develop an existing structure in a qualifying district, after completion of the work, pay ad valorem taxes based on the assessed valuation of the property prior to the commencement of the improvements. The tax abatement is not available if property taxes have been paid on the improvements made by the project. If the property is sold, the contract may be transferred, subject to local government and board approval. Contracts may be renewed for an additional five years if approved by the local governing authority.
- An Advance Notification Form, with the $250 fee, must first be filed with the Office of Business Development, Business Incentives Division(BI) and should be received prior to the beginning of construction. After receiving the Advance Notification Form and fee, an application number is assigned and an acknowledgment letter and application packet is sent to the applicant.
- The Application should be filed with the BI along with the Application Fee. For “certified historic structures,” a copy of the Application should also be sent to the Division of Historic Preservation. BI staff will review the application for accuracy and determine if all the required documentation has been included.
- The application is then sent to the staff of the local governing authority. The local governing authority must notify the Board of Commerce and Industry within 60 days of receipt of the application. After the staff’s review, the application is presented for approval at a meeting of that local governing authority. If approved by the local governing authority, this resolution, allowing the abatement, will be sent to the BI. Contact JEDCO for local RTA policy guidelines.
- After the BI receives the local governing authority’s resolution, the application is reviewed and recommendation is made to the Board of Commerce and Industry, Screening Committee at its next regularly scheduled meeting (usually the fourth Wednesday of every odd numbered month). The screening committee’s recommendation is presented to the full Board of Commerce and Industry at its next meeting (which is usually the fourth Wednesday of every even numbered month).
- After approval of the application by the Board of Commerce and Industry, a contract is drafted and forwarded to the applicant (now called the Contractee) for signature. When the contractee returns the contracts with their part executed, the contract is signed by the authorized representative of the board and is sent to the governor for his approval and signature. The Governor has 30 days to notify the Board of Commerce and Industry of his decision.
- Copies of the executed contract are forwarded to the contractee, parish assessor, mayor or local governing authority, and any other necessary agency.
- After completion of the project, the contractee must file the contract addendum documents (the Project Completion Report and Affidavit of Final Cost) in accordance with the rules. Copies of these documents are sent to the parish assessor and other contract recipients. Once these contract addendums are received by the Office of Commerce and Industry along with the $250 inspection fee, the contract documentation is complete.
- The contractee is responsible for filing or reporting annually to the assessor on forms provided by the assessor.
- Other filing fees apply.
Click the link below for a map showing the boundaries of the RTA-eligible districts in Jefferson Parish. For a determination of eligibility of your project based on its location, we encourage you to contact JEDCO.
Map of RTA-Eligible Districts in Jefferson Parish
Economic Information and Incentives Coordinator
Phone: (504) 875-3920
Fax: (504) 875-3923
LOUISIANA ECONOMIC DEVELOPMENT
Business Incentive Services
Phone: (225) 342-6070