LAC 13:I.901 – General

A. Intent of Law. To encourage the expansion, restoration, improvement, and development of existing commercial structures and owner-occupied residences in downtown, historic, and economic development districts or Federally designated opportunity zone (collectively referred to as “economic development districts”). To provide for the development and improvement of local communities, encourage the fullest use of underutilized resources, and enhancement of the tax base.
B. Program Description. The Restoration Tax Abatement Program (“program”) provides to commercial property owners and homeowners who expand, restore, improve or develop an existing structure ("project") in a downtown development district, economic development district or historic district, the right for five years after completion of the work, to pay ad valorem taxes based on the assessed valuation of the property for the year prior to the commencement of the project.
1. 1. The application is subject to approval by the local governing authority, the state Board of Commerce and Industry (“board”), and the governor. Assessment of the improvements, made by the project to the property, is deferred for five years by a contract entered into with the board. The contract may be eligible for renewal, subject to the same conditions, for an additional five years. The tax abatement is not available if property taxes have been paid on the improvements made by the project. If the property is sold, the contract may be transferred, subject to local government and board approval.
2. 2. The program is administered by Louisiana Economic Development (“LED”).

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:4311-4319.

Historical Note

HISTORICAL NOTE: Promulgated by the Department of Commerce, Office of Commerce and Industry, Finance Division, LR 11:98 (February 1985), amended LR 12:665 (October 1986), amended by the Department of Economic Development, LR 18:252 (March 1992), amended by Louisiana Economic Development, Office of Economic Development, LR 52:982 (June 2026).