1. A. Purpose

   1. 1. Louisiana values its manufacturers and their contributions to its economy.
   2. 2. Article VII, Section 21 (F) of the Louisiana Constitution of 1974 provides that the Board of Commerce and Industry (“Board”), with the approval of the Governor, may enter into contracts for the exemption from ad valorem taxes of a new manufacturing establishment or an addition to an existing manufacturing establishment on such terms and conditions as the Board, with the approval of the Governor, deems is in the best interest of the state.

2. B. Best Interest of the State

   1. 1. The provisions set forth in this Subchapter establish the criteria that the governor and the board will consider for purposes of deciding what is in the best interest of the state.

3. C. Applicability

   1. 1. The provisions set forth in this Subchapter shall apply to projects with advances filed on or after February 21, 2024.
   2. 2. The provisions set forth in this Subchapter shall not apply to projects with advances filed prior to February 21, 2024, or ITEP projects approved by the board prior to February 21, 2024.

4. D. Property Exemption rates

   1. 1. As a general rule, approved projects may be eligible for an ad valorem tax exemption rate of 80 percent;
   2. 2. In exceptional circumstances, mega projects may be eligible for an increased ad valorem tax exemption rate range beginning at 93 percent up to 100 percent, if so recommended by the local ITEP Committee, or as otherwise approved by the governor.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with Article VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.

Historical Note

HISTORICAL NOTE: Promulgated by the Board of Commerce and Industry and Louisiana Economic Development, LR 51:367 (March 2025).