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 or 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 exemption 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 & Industry. Tax exempt property must remain on the plant site at all times. The land itself is not eligible for tax exemption.
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. A manufacturer applying for this program must submit an Advance Notification form if an individual project is to be greater than $5 million, or the business is also applying for another incentive program for the same project (such as the enterprise zone or quality jobs). The Advance Notification form must be filed prior to purchasing (installation of the equipment in-state) or the beginning of construction.
B. A manufacturer may submit an application with an accumulation of Miscellaneous Capital Additions (MCA) for a compilation of small capitalized expenditures (projects) which are completed by the end of a calendar year and not greater than $5 million per application. MCA applications must be postmarked no later than March 31 (October 31 for Orleans Parish) of the year following the year these expenditures were made. Each MCA application may not exceed $5 million. More than one MCA application may be submitted per year.
C. 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.
D. All applications which include replacement equipment must reduce the application amount by subtracting the original cost of the item(s) being replaced.
FOR ADDITIONAL INFORMATION CONTACT: Lori Weber Louisiana Economic Development Business Incentive Services P. O. Box 94185, Baton Rouge, LA 70804-9185 1051 North Third Street, Baton Rouge, LA 70802 Phone: 225/342-6442 Fax: 225/342-0142 E-mail: weber@la.gov Forms/On Line: www.louisianaforward.com
FOR MORE INFORMATION CONTACT: St. Tammany Economic Development Foundation 21489 Koop Drive, Suite 7, Mandeville, LA 70471 Phone: 985-809-7874 Fax: 985-809-7596
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