1. Addition to a Manufacturing Establishment—

   1. 1.

      1. a. a capital expenditure for property that would meet the standard of a new manufacturing establishment if the addition were treated as a stand-alone establishment;
      2. b. a capital expenditure for property that is directly related to the manufacturing operations of an existing manufacturing establishment; or
      3. c. an installation or physical change made to a manufacturing establishment that increases its value, utility or competitiveness;
   2. 2. Sustaining capital expenditure, proactive environmental capital upgrades, and replacement parts shall qualify as an addition to a manufacturing establishment only if required in the rehabilitation or restoration of an establishment, to conserve as nearly, and as long as possible, original condition, and described in the project application.
   3. 3. a capital expenditure associated with the rehabilitation or restoration of an establishment as provided for in §545 shall be included as an addition to a manufacturing establishment.
   4. 4. a capital expenditure associated with the expansion of an existing manufacturing establishment may be considered an addition, if the expansion project is a planned initiative to increase the size, capacity, scope, or reach of an existing establishment, or adds new components or features to accommodate growth.
2. Annual Project Property Report—the required annual filing submitted to LED by the company which may include but not be limited to: a description of the project progress over the last year and a listing of any asset or group of assets being placed in service, within the scope of the approved project, as required by §559.
3. Beginning of Construction—the first day on which foundations are started or, where foundations are unnecessary, the first day on which installations of the manufacturing establishment begins.
4. Board—Board of Commerce and Industry, or BCI.
5. Capital Expenditure—the cost associated with a new manufacturing establishment or an addition to an existing manufacturing establishment, including purchasing or improving real property and tangible personal property, whose useful life exceeds one year and which is used in the conduct of business.
6. Committee—Local ITEP Committee
7. Contiguous—Property that is adjoining. Rights of way do not prevent property from being considered contiguous. Two or more parcels of land with a common boundary or separated solely by a roadway or other right of way.
8. Department—Louisiana Department of Economic Development.
9. Exemption Period—the period of the exemption for an asset or group of assets, which shall begin when placed in service, as set forth in company’s annual project property report (APPR) annual filings submitted to LED.
10. Integral—equipment, structures or materials needed to make the product in accordance with applicable environmental, health and safety requirements, and associated activities supporting operations at the Site, as approved by LED.
11. ITEP Contract—a contract for exemption between applicant company, BCI, and the Governor, setting forth the project period, the exemption percentage and the general terms and conditions of the contract deemed in the best interest of the state.
12. LDR—Louisiana Department of Revenue.
13. LED—Louisiana Economic Development, formerly known as the Department or the Louisiana Department of Economic Development.
14. Local Governmental Entity—the parish governing authority, school board, sheriff, or any municipality in which the manufacturing establishment is or will be located.
15. LWC—Louisiana Workforce Commission.
16. Maintenance Capital—expenditures made for routine maintenance, turnarounds, and for the repair of existing equipment.
17. Manufacturer—a person or business who engages in manufacturing at a manufacturing establishment.
18. Manufacturing—working raw materials by means of mass or custom production, including fabrication, applying manual labor or machinery into wares suitable for use or which gives new shapes, qualities or combinations to matter which already has gone through some artificial process. The resulting products must be suitable for use as manufactured products that are placed into commerce for sale or sold for use as a component of another product to be placed, and placed into commerce for sale.
19. Manufacturing Establishment—a new plant or establishment or an addition or additions to any existing plant or establishment which engages in the business of working raw materials into wares suitable for use or which gives new shapes, qualities or combinations to matter which already has gone through some artificial process.

20. Mega-Project—a manufacturing establishment expansion or addition project, with capital expenditures meeting or exceeding the following benchmarks, in accordance with statewide data posted on LED’s website, to be updated annually:

    1. 1. 200 percent of the 10 year parish average for capital expenditures by completed ITEP Projects; if none,

    2. 2. 200 percent of the 10 year regional average for capital expenditures by completed ITEP Projects;

       1. a. In accordance with the geographic boundaries of the 8 regional economic development organizations; if none,
    3. 3. 200 percent of the 10 year statewide average for capital expenditures by completed ITEP Projects.
21. Miscellaneous Capital Additions—capital expenditures that are not part of the project.
22. Obsolescence—the inadequacy, disuse, outdated or non-functionality of facilities, infrastructure, equipment or product technologies due to the effects of time, decay, changing market conditions, invention and adoption of new product technologies or changing consumer demands.
23. Place in Service and Placed in Service—the date when an asset is substantially complete and ready for its intended use, as reflected in a company’s fixed asset register, books or records.
24. Proactive Environmental Capital Upgrades—voluntary improvements or modifications to infrastructure or equipment that go beyond legal or regulatory compliance to reduce environmental impact and enhance sustainability, efficiency, and environmental performance.
25. Project—a brief but adequate description of the general scope of work intended by the company at a single site, for which ITEP benefits are being pursued, and as stated by the company on the project application. This should include what is planned to be constructed, added, the purpose of the project, and the calendar years in which assets or groups of assets will be placed in service within the project period. If a project spans two or more parishes, one project application may be submitted, however, separate annual filings with a breakdown of assets by parish will be required.
26. Project Period—the designated project period during which the applicant company may place in service new assets or spend capital expenditures on assets within the scope of the approved project.

27. Qualified Disaster—

    1. 1. a disaster which results from:

       1. a. an act of terror directed against the United States or any of its allies; or
       2. b any military action involving the Armed Forces of the United States and resulting from violence or aggression against the United States or any of its allies (or threat thereof), but not including training exercises;
    2. 2. any disaster which, with respect to the area in which the manufacturing establishment is located, resulted in a subsequent determination by the president of the United States that such area warrants assistance by the federal government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act;
    3. 3. a disaster which is determined by an applicable federal, state, or local authority (as determined by the secretary) to warrant assistance from the federal, state, or local government, or agency or instrumentality thereof; or
    4. 4. any other extraordinary event that destroys or renders all or a portion of the manufacturing establishment inoperable.
28. Regional Economic Development Organization—any of the following eight organizations: the Baton Rouge Area Chamber; the Central Louisiana Economic Development Alliance; Greater New Orleans, Inc.; the Northeast Louisiana Economic Alliance; the North Louisiana Economic Partnership; One Acadiana; the South Louisiana Economic Council; the Southwest Louisiana Economic Development Alliance, or any of their successors. Abbreviated and also known as “REDO”.
29. Rehabilitation—the extensive renovation of a building or project that is intended to cure obsolescence or to repurpose a facility.
30. Required Environmental Capital Upgrades—upgrades required by any state or federal governmental agency, as a result of an enforcement action by said agency.
31. Restoration—repairs to bring a building or structure to at least its original form or an improved condition.
32. Secretary—secretary of the Louisiana Economic Development.
33. Site—one or more contiguous parcels of land which are under the control of the manufacturing establishment or which contains certain assets of the manufacturing establishment. Assets leading to and from the project boundary, such as pipelines, rail lines, or other forms of transporting goods to and from the site or between sites that reside on easements or right of ways shall not be included as the contiguous area of the entire manufacturing operation.
34. Sustaining Capital Expenditure—investments in new equipment, property, or plant to replace existing outmoded assets without necessarily increasing the business's output capacity.

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).