1. A. Upon board approval of a project application and receipt of the Local ITEP Committee’s recommendation, if any, LED shall draft an ITEP contract setting forth the terms and conditions, which may include but not be limited to the following:

   1. 1. an initial term of no more than five calendar years;
   2. 2. a term of renewal for an additional time period of up to five years;
   3. 3. the applicable ad valorem exemption percentage; and
   4. 4. contract holder business name; and if applicable, a list of any contract holder affiliates that may seek tax exemption for assets related to the approved project, which shall be included as Schedule I to the contract.

2. B. The ITEP contract effective date shall be the project start date, as specified in the project application, but no earlier than the project application submission date.

   1. 1. The beginning of construction for the ITEP contract project must occur prior to the completion of the initial five-year ITEP contract term.
   2. 2. If company is compliant with the terms of its ITEP Contract, including but not limited to its annual APPR filings, then company may request the Board to consider a change of its ITEP contract effective date.

3. C. During the initial five-year ITEP contract term, the company may place in service an asset or group assets that are eligible for the exemption and that are related to the project.

   1. 1. The exemption period of any asset or group of assets shall be established through the company’s annual project property report (APPR) submitted to LED.
4. D. The ITEP contract shall be submitted to the company electronically via LED’s electronic document signing system, or other method as may otherwise be approved by all parties.
5. E. The company must execute its portion of the contract within 90 days of receipt of notification from LED’s electronic document signing system. If the ITEP contract is not executed and submitted to LED within 90 days, the company shall submit documentation of continued eligibility prior to reissuance for company signature and further processing. Documentation may include but not be limited information from the applicable taxing authority verifying that either property taxes have not been paid at more than 20 percent, or as otherwise authorized pursuant to §543.
6. F. Once the ITEP contract has been executed by the company and the board, the ITEP contract, including any Local ITEP Committee recommendation, included as an exhibit to the ITEP contract, shall be submitted to the governor for review and consideration.
7. G. The governor may approve or deny the ITEP contract, and an ITEP contract shall not be considered effective or binding upon the state until signed by the governor.
8. H. Any occurrence that operates to change, suspend, or breach the terms of the contract shall render the approval of the governor null and void.
9. I. The exemption period of certain assets placed in service during the term of the ITEP Contract and associated tax exemption benefits may extend beyond the ITEP contract term.

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 51:371 (March 2025).