1. A. Notwithstanding any provision to the contrary, the following property is ineligible for the tax exemption:

   1. 1. Property

      1. a. Miscellaneous capital additions;
      2. b. Maintenance capital; required environmental capital upgrades; and replacement parts, except those replacements required in the rehabilitation or restoration of an establishment, to conserve as nearly, and as long as possible, original condition, are not eligible for the tax exemption.

      3. c. If the establishment or addition is on the taxable rolls and property taxes have been paid at more than 20 percent, the establishment or addition is not eligible for the exemption, unless one or more of the following conditions are met:

         1. i. if the applicant paid the taxes under protest, then the property may be eligible for exemption once the protest and appeals process concludes and concludes in favor of the tax payer;
         2. ii. if the applicant has a change order approved by the Louisiana Tax Commission and the change order results in a reimbursement of property taxes paid on eligible property, then such property, or the proportional value thereof, may be considered by exemption.
      4. d. The board shall not consider for tax exemption any property previously subject to an ad valorem tax exemption that has expired or otherwise been terminated.
   2. 2. Land. The land on which a manufacturing establishment is located is not eligible for tax exemption.

   3. 3. Inventories of the following items:

      1. a. inventories of raw materials used in the course of manufacturing;
      2. b. inventories of work-in-progress or finished products;
      3. c. any other consumable items.
   4. 4. Maintenance and repair costs not eligible for capitalization shall not qualify.
   5. 5. Moveable, non-permanent property, such as mobile computers, phones, cameras, vehicles licensed for highway use, or other non-manufacturing equipment that is not permanently located at the manufacturing establishment.

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 Louisiana Economic Development, Board of Commerce and Industry, LR 51:369 (March 2025).