ECONOMIC DEVELOPMENT
utilizing a cathode ray tube or video display screen and
microprocessors in which the player may win games or
credits that can be redeemed for merchandise or cash. The
term does not include a device that directly dispenses coins,
cash, tokens, or anything else of value, except the ticket
voucher required in accordance with the provisions of this
Part. The term does not include any device authorized to be
used in the conducting of charitable gaming.

forward are to provide all a seat at the table to determine the
best investment outcome for our industries and our
communities.

AUTHORITY NOTE: Promulgated in accordance with R.S.
51:926, 51:1786(6), 47:4319.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Commerce and Industry,
Division of Financial Incentives, LR 21:258 (March 1995),
amended by the Department of Economic Development, Office of
Commerce and Industry, Division of Business Incentives, LR
26:630 (April 2000).

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Business Development, LR
43:1132 (June 2017).

Chapter 5. Industrial Ad Valorem
Tax Exemption Program

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;

§501.

2. All rules in this chapter are intended to align with
the above purpose while providing a process that balances
accountability with reasonable administrative burden for
state and local government and applicants.

§502.

Addition to a Manufacturing Establishment—

Statement of Purpose

b. a capital expenditure for property that is directly
related to the manufacturing operations of an existing
manufacturing establishment; or

A. New Rules
1. These rules amend and restate prior rules and upon
adoption are to implement two important policies for the
industrial property tax exemption. The first is as a
competitive incentive for job creation and under compelling
circumstances, job retention. The second is to provide for
input from local parish and municipal governments, school
boards and sheriffs as to the extent of, and other terms and
conditions for the industrial tax exemption.

c. an installation or physical change made to a
manufacturing establishment that increases its value, utility
or competitiveness;
2. maintenance capital, environmentally required
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, shall not qualify as an addition
to a manufacturing establishment;

2. On all projects, applicant manufacturers are to
demonstrate a genuine commitment to investing in the
communities in which they operate, and a genuine
commitment to creating and retaining jobs in those
communities. These are the expectations for the program’s
future, and the board will continue to operate it in a way that
makes Louisiana competitive with other states in securing
good jobs for our citizens while giving local governments a
voice in their taxation. These rules are to be interpreted in a
manner so as to promote these goals.

3. expenses associated with the rehabilitation or
restoration of an establishment as provided for in §511 shall
be included as an addition to a manufacturing establishment.
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.

B. Applicability of Prior Rules. Just as the board is
promoting job growth and economic development and
extending fairness to communities, the board is promoting
fairness to manufacturers who have acted in accordance with
prior rules. Contracts for the industrial property tax
exemption and the renewal of the exemption and projects
found to be pending as defined by Executive Orders JBE 1626 and JBE 16-73 are to be treated fairly under the rules that
were in place at the time of the contracts and prior to the
new rules. Louisiana honors its commitments and the rules
governing existing contracts and applications not subject to
the new rules are to be interpreted in order to promote
fairness and commitment. Therefore, only those applications
with an advance notification form filed after June 24, 2016,
are subject to the 2017 rules changes.

Board—Board of Commerce and Industry.
Capital Expenditure—the cost associated with a new
manufacturing establishment or an addition to an existing
manufacturing establishment, including the purchasing or
improving real property and tangible personal property,
whose useful life exceeds one year and which is used in the
conduct of business.
Environmentally Required Capital Upgrades—upgrades
required by any state or federal governmental agency in
order to avoid fines, closures or other penalty.
Establishmentan economic unit at a single physical
location.
Integral—required to make whole the product being
produced.

C. Going Forward

Job—positions of employment that are:

1. Louisiana values its manufacturers and their
contributions to its economy. The board’s policies going
Louisiana Administrative Code

June 2017

Definitions

4

 Title 13, Part I
secretary) to warrant assistance from the federal state or
local government or agency of instrumentality thereof; or

1. new (not previously existing in the state) or
retained;
2.

permanent (without specific term);

3.

full-time (working 30 or more hours per week);

4. any other extraordinary event that destroys or
renders all or a portion of the manufacturing establishment
inoperable.

4. employed directly, by an affiliate or through
contract labor;
5.

Rehabilitation—the extensive renovation of a building or
project that is intended to cure obsolescence or to repurpose
a facility.

based at the manufacturing establishment;

Restoration—repairs to bring a building or structure to at
least its original form or an improved condition.

6. filled by a United States citizen who is domiciled in
Louisiana or who becomes domiciled in Louisiana within 60
days of employment; and

Secretary—secretary
Development.

7. any others terms of employment as negotiated in
the exhibit A or exhibit B.

Louisiana

Economic

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.

LED—Louisiana Economic Development.
Local Governmental Entity—parish governing authority,
school board, sheriff, and any municipality in which the
manufacturing establishment is or will be located.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Business Development, LR
43:1132 (June 2017).

Maintenance Capital—costs incurred to conserve as
nearly as possible the original condition.
Manufacturer—a person or business who engages in
manufacturing at a manufacturing establishment.

§503.

Advance Notification; Application

A. An advance notification of intent to apply for tax
exemption shall be filed with the LED Office of Business
Development (OBD) on the prescribed form prior to the
beginning of construction or installation of facilities on all
projects for tax exemption except as provided in §505.A and
B of these rules. An advance notification fee of $250 shall be
submitted with the form. The advance notification will
expire and become void if no application is filed within 12
months of the estimated project ending date stated in the
advance notification. The estimated project ending date as
stated on the advance notification may be amended by the
applicant if the amendment is made prior to the estimated
project ending date.

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.
Obsolescence—the inadequacy, disuse, outdated or nonfunctionality 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.

B. All financial incentive programs for a given project
shall be filed at the same time and on the same advance
notification. The applicable advance notification fee for each
program for which the applicant anticipates applying shall
be submitted with the advance notification.

Qualified Disaster—
1.

of

a disaster which results from:

a. an act of terror directed against the United States
of any of its allies; or

C. An application for tax exemption may be filed with
OBD on the prescribed form:

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;

1. either concurrent with or after filing the advance
notification, but no later than 90 days after the beginning of
operations or end of construction, whichever occurs first;
2. the deadline for filing the application may be
extended pursuant to §523;

2. any disaster which, with respect to the area in
which the property 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. an applicant filing an application prior to the
beginning of operations or end of construction of the project
shall file an annual status report with OBD on the prescribed
form by December 31, until the project completion report
and affidavit of final cost are filed. If the applicant fails to
timely file a status report the board may, after notice to the
applicant, terminate the contract.

3. a disaster which is determined by an applicable
federal, state, or local authority (as determined by the
5

Louisiana Administrative Code

June 2017

 ECONOMIC DEVELOPMENT
percentage exemption granted by the other local governing
bodies who have issued a resolution or letter:

D. In order to receive the board’s approval, applications
with advance notifications filed after June 24, 2016, shall
contain both of the following:

i.
the business shall copy LED on its written
request to the parish governing authority, school board and
municipality for the required resolutions and its written
request to the sheriff for the required letter;

1. an exhibit “A” consisting of a fully executed
cooperative endeavor agreement between the state,
Louisiana Economic Development and the applicant
specifying the terms and conditions of the granting of the
exemption contract:

ii.
LED shall post a copy of the business’ written
request to the parish governing authority, school board and
municipality for the required resolutions and the business’
written request to the sheriff for the required letter on its
website no later than three business days after receipt of the
request;

a. the terms and conditions of the exhibit “A” shall
include the following:
i.
either number of jobs and payroll to be created
at the project site or the number of jobs and payroll to be
retained at the project site where applicable;

c. LED will provide guidance to local governmental
entities as to suggested alternatives as it relates parameters
for job creation, payroll, percentage of exemption and length
of contract;

ii.
the term of the exemption contract which shall
be for up to, but no more than five years and may provide
for an ad valorem exemption of up to 100 percent and terms
for renewal may be included provided that the renewal of the
contract shall be for a period up to, but no more than three
years and may provide for an ad valorem tax exemption of
up to, but no more than 80 percent;

3. the board shall consider the information collected
and the provisions of exhibits “A” and “B” in determining
whether to approve the contract for exemption and the
renewal thereof;
4. if the terms of exhibit “A” and exhibit “B” as it
relates to the term of the exemption, and the percentage of
property tax eligible for exemption are not the same, the
provisions of exhibit “B” shall prevail.

iii.
the percentage of property eligible for the
exemption;
iv.
any penalty provisions for failure to create the
requisite number of jobs or payroll at the project site,
including but not limited to, a reduction in term, reduction in
percentage of exemption, or termination of the exemption;
and

E.1. Applications which provide for a new manufacturing
establishment or which provide for an addition to a
manufacturing establishment with the creation of new jobs
or a compelling reason for the retention of existing jobs shall
be favored by the board.

v.
a statement of return on investment (ROI) as
determined by the secretary;

2. In determining whether a company has presented a
compelling reason for the retention of existing jobs, the
following situations may be considered:

2. an exhibit “B” consisting of resolutions adopted by
the parish governing authority (speaking on behalf of the
parish and all parish bodies who are located outside the
boundary of the affected municipality, where applicable,
who receive a millage), the school board, and any
municipality (speaking on behalf of the municipality and all
municipal bodies who receive a millage) and a letter from
the sheriff approving the project in which the manufacturing
establishment is or will be located signifying whether each
of these authorities is in favor of the project:

a.

b. to provide an advantage for investment from a
company with multi-state operations with an established
competitive capital project program;
c. to employ best practice or innovative, state of the
art technology for the establishment’s industry;

a. exhibit “B” shall include provisions addressing
the following:

d.

F. An application fee shall be submitted with the
application in the amount equal to 0.5 percent of the
estimated total amount of taxes to be exempted. In no case
shall an application fee be smaller than $500 and in no case
shall a fee exceed $15,000 per project.

ii.
the term of the exemption contract approved by
the local governmental entity; and
iii.
the percentage of property eligible for the
exemption approved by the local governmental entity;

G. OBD reserves the right to return the advance
notification, application, or affidavit of final cost to the
applicant if the form is incomplete or incorrect, or the
correct fee is not submitted. The document may be
resubmitted with the correct information and fee.

b. failure of the parish governing authority, the
school board, or the municipality to issue a resolution or
failure of the Sheriff to issue a letter within 120 days of a
business’ written request for such resolution shall result in an
exemption equal to the mathematical average of the term and
June 2017

to increase maximum capacity or efficiency; or

e. to provide the state a competitive advantage as
determined by the secretary or by the board.

i.
the number of jobs and payroll to be created at
the project site required by the local governmental entity for
approval of the exemption;

Louisiana Administrative Code

to prevent relocation to another state or country;

6

 Title 13, Part I
Department of Economic Development, Office of Commerce and
Industry, LR 20:865 (August 1994), amended by the Department of
Economic Development, Office of Business Development, LR
37:2377 (August 2011), LR 41:2318 (November 2015), LR
43:1135 (June 2017).

H. If the application is submitted after the filing
deadline, the term of exemption available under an initial
contract and renewal thereof shall be reduced by one year
for each year or portion thereof that the application is late,
up to a maximum reduction up to the maximum remaining
term. The board may impose any other penalty for late filing
that it deems appropriate.

§507.

I. The department will provide a copy of the application
and all relative information to the Louisiana Department of
Revenue (LDR) for review. LDR may require additional
information from the applicant. The department must receive
a letter-of-no-objection or a letter-of-approval from the
LDR, prior to submitting the application to the board for
action.

A. The board shall consider for tax exemption buildings
and facilities used in the operation of new manufacturing
establishments located within the state of Louisiana (subject
to the limitations stated in §§517 and 519) and additions to
manufacturing establishments within the state of Louisiana.
Exemptions are granted to the owners of buildings that
house a manufacturing establishment and facilities that are
operated specifically in the manufacturing of a product. The
board recognizes two categories of ownership:

J. Eligibility of the applicant and the property for the
exemption, including whether the activities at the site meet
the definition of manufacturing, will be reviewed by the
board based upon the facts and circumstances existing at the
time the application is considered by the Board of
Commerce and Industry. The property exempted may be
increased or decreased based upon review of the application,
project completion report or affidavit of final cost. An
application filed prior to completion of construction may be
considered by the board and a contract may be executed
based upon the best available estimates, subject to review
and approval of the project completion report and affidavit
of final cost. If the applicant fails to timely file the project
completion report or affidavit of final cost the board may,
after notice to the applicant, terminate the contract.

1. owners who engage in manufacturing at said
facilities; and
2. owners who are not engaged in manufacturing at
said manufacturing establishment, but who have provided
either or both of the following for a predetermined
manufacturing establishment:
a. buildings
establishment;

to

house

a

manufacturing

b. facilities that consist of manufacturing equipment
operated specifically in the manufacturing process;
3. owners who are not engaged in manufacturing at
the manufacturing establishment are eligible for the
exemption only if the manufacturer at the site is obligated to
pay the property taxes if the exemption were not granted.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by Department of Commerce, Office of Commerce
and Industry, LR 11:97 (February 1985), LR 12:662 (October
1986), amended by the Department of Economic Development,
Office of Commerce and Industry, LR 20:864 (August 1994),
amended by the Department of Economic Development, Office of
Business Development, LR 37:2376 (August 2011), LR 41:2318
(November 2015), LR 43:1133 (June 2017).

§505.

Eligible PropertyBuildings and Facilities Used
in Manufacturing; Leased Property; Capitalized
Materials

B. Leased property is eligible for the exemption, if the
property is used in the manufacturing process, is and
remains on the plant site, and the manufacturer is obligated
under the lease agreement to pay the property taxes if the
exemption were not granted.
C. Capitalized materials which are an essential and
integral part of a manufacturing process, but do not form
part of the finished product, may be exempted along with the
manufacturing establishment. Some examples of these are:

Miscellaneous Capital Additions

A. The renewal of miscellaneous capital addition
contracts approved in accordance with JBE 16-26 and 16-73
shall be treated in accordance with prior rules.
B. Miscellaneous capital additions which had pending
contractual applications on June 24, 2016, and which
provide for new jobs at the completed manufacturing
establishment shall be considered by the board.

1.

ammonia in a freezing plant;

2.

solvent in an extraction plant; and

3.

catalyst in a manufacturing process.

D. To be eligible for exemption, a manufacturing
establishment must be in an operational status and engaged
in manufacturing. An owner of a new manufacturing
establishment under construction may apply for an
exemption with the expectation that the manufacturing
establishment will become operational. If the manufacturing
establishment fails to become operational or ceases
operations without a reasonable expectation of
recommencing operations, the facility shall no longer be
eligible for exemption and its contract shall be subject to
termination under §531.

C. Miscellaneous capital additions which did not have a
pending contractual application as of June 24, 2016 or those
with pending applications as of June 24, 2016, but do not
provide for new jobs, are not eligible for the property tax
exemption.
AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Commerce, Office of Commerce and Industry, LR 11:97 (February
1985), amended LR 12:662 (October 1986), amended by the

7

Louisiana Administrative Code

June 2017

 ECONOMIC DEVELOPMENT
Development, Office of Business Development, LR 37:2378
(August 2011), LR 43:1135 (June 2017).

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by the Department of Economic Development, Office
of Commerce and Industry, LR 20:865 (August 1994), amended by
the Department of Economic Development, Office of Business
Development, LR 37:2377 (August 2011), LR 43:1135 (June
2017).

§509.

§513.

A. A manufacturing establishment moved from one
location in the state to another place within the state shall be
eligible for the unexpired consecutive years, if any, of the
tax exemption contract granted at the original location.
B. If a manufacturing establishment moves from one
location in the state to another location within the state, the
company shall be required to seek approval of the parish
governing authority, the school board, the Sheriff, and any
municipality in which the manufacturing establishment will
be located if these local governing authorities are different
than those that approved the exemption at the original site.

Integral Parts of the Manufacturing Operation

A. Property that is an integral part of the manufacturing
operation is eligible for the tax exemption. .
B. The following activities are considered to be integral
to the manufacturing process:
1.

quality control/quality assurance;

2.

packaging;

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946. amended and
promulgated by the Department of Economic Development, Office
of Commerce and Industry, LR 20:866 (August 1994), amended by
the Department of Economic Development, Office of Business
Development,
LR
29:2633
(December
2003),
LR
37:2378 (August 2011), LR 43:1136 (June 2017).

3. transportation of goods on the site during the
manufacturing process;
4. other on site essential activities as approved by the
secretary and the board.
AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Commerce and Industry, LR
20:866 (August 1994), amended by the Department of Economic
Development, Office of Business Development, LR 37:2378
(August 2011), LR 43:1135 (June 2017).

§511.

§515.

AUTHORITY NOTE: Promulgated in accordance with Article
VD, Pan 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Commerce and Industry, LR
20:886 (August 1994), amended by the Department of Economic
Development, Office of Business Development, LR 37:2378
(August 2011), LR 43:1136 (June 2017).

A. Capital expenditures for the rehabilitation or
restoration of an existing establishment may be exempted if
it is not maintenance. If replacements or upgrades are made
as part of a rehabilitation or restoration to an establishment,
only the capital expenditures in excess of original cost shall
be eligible for tax exemption. A deduction for the original
cost of property to be replaced shall not be made if the
project will result in capital additions that exceed
$50,000,000.

§517.

Ineligible Property

A. Maintenance capital, environmentally required capital
upgrades and new replacements to existing machinery and
equipment, except those replacements required in the
rehabilitation or restoration of a facility, are not eligible for
the tax exemption.

B. Exemption may be granted on the costs of
rehabilitation or restoration of a partially or completely
damaged facility, but only on the amount in excess of the
original cost.

B. If the establishment or addition is on the taxable rolls
and property taxes have not been paid, the establishment or
addition is not eligible for the exemption unless the assessor
and local governmental entity agree in writing to remove the
establishment or addition from the taxable rolls should the
tax exemption be granted.

C. Original costs deducted from rehabilitation or
restoration made or rebuilding shall be clearly documented.
D. A deduction for the original cost of property to be
replaced as part of a rehabilitation or restoration, as provided
by Subsections A or B, shall not be made if the project is
related to the replacement or reconstruction of property after
the destruction of or damage to such property, as a result of a
qualified disaster.

C. The board shall not consider for tax exemption any
property listed on an application on which ad valorem
property taxes have been paid.
AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by the Department of Commerce, Office of
Commerce and Industry, LR 11:97 (February 1985), amended by
the Department of Economic Development, Office of Commerce
and Industry, LR 20:866 (August 1994), amended by the

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Commerce and Industry, LR
20:866 (August 1994), amended by the Department of Economic

June 2017

Used Equipment

A. Used equipment is eligible for tax exemption
provided no ad valorem property taxes have been paid in
Louisiana on said property.

Rehabilitation and Restoration of Property

Louisiana Administrative Code

Relocations

8

 Title 13, Part I
Department of Economic Development, Office of Business
Development, LR 37:2378 (August 2011), LR 43:1136 (June
2017).

§519.

filing the project completion report may be extended
pursuant to §523.
B. The effective date of tax exemption contracts for
property located in parishes other than Orleans Parish shall
be December 31 of the year in which effective operation
began or construction was essentially completed, whichever
occurs first. The effective date of tax exemption contracts for
property located in Orleans Parish shall be July 31 of the
applicable year.

Land

A. The land on which a manufacturing establishment is
located is not eligible for tax exemption.
AUTHORITY NOTE: Promulgated in accordance with Article
VU, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by the Department of Economic Development, Office
of Commerce and Industry, LR 20:866 (August 1994), amended by
the Department of Economic Development, Office of Business
Development, LR 37:2379 (August 2011), LR 43:1136 (June
2017).

§521.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by the Department of Economic Development, Office
of Commerce and Industry, LR 20:867 (August 1994), amended by
the Department of Economic Development, Office of Business
Development LR 37:2379 (August 2011), LR 41:2318 (November
2015), LR 43:1136 (June 2017).

Inventories

A. The following are not eligible for tax exemption:
1. inventories of raw materials used in the course of
manufacturing;
2. inventories
products;
3.

of

work-in-progress

or

§527.

A. Within six months of the beginning of operations,
completion of construction, or receipt of the executed
contract, whichever occurs last, the owner of a
manufacturing establishment or addition shall file on the
prescribed form an affidavit of final cost showing complete
cost of the exempted project. A fee of $250 shall be filed
with the affidavit of final cost or any amendment to the
affidavit of final cost. Upon request by OBD, a map showing
the location of all facilities exempted in the project shall be
submitted in order that the exempted property may be clearly
identifiable. The deadline for filing the affidavit of final cost
may be extended pursuant to §523.

finished

any other consumable items.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the Board of Commerce
and Industry, December 9, 1946, amended and promulgated by the
Department of Economic Development, Office of Commerce and
Industry, LR 20:866 (August 1994), amended by the Department of
Economic Development, Office of Business Development, LR
37:2379 (August 2011), LR 43:1136 (June 2017).

§523.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by the Department of Commerce, Office of
Commerce and Industry, LR 12:662 (October 1986), amended by
the Department of Economic Development, Office of Commerce
and Industry, LR 20:867 (August 1994), amended by the
Department of Economic Development, Office of Business
Development, LR 37:2379 (August 2011), LR 41:2319 (November
2015), LR 43:1137 (June 2017).

Extension of Time

A. OBD may grant an extension of up to six months for
the filing of an application (§503.B), a project completion
report (§525), or an affidavit of final cost (§527), provided
the request for extension is received prior to the filing
deadline.
B. Additional extensions of time may be granted for
good cause.
AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Commerce and Industry, LR
20:867 (August 1994), amended by the Department of Economic
Development, Office of Business Development, LR 37:2379
(August 2011), LR 43:1136 (June 2017).

§525.

Affidavit of Final Cost

§529.

Renewal of Tax Exemption Contract

A. Application for renewal of the exemption must be
filed with OBD on the prescribed form not more than six
months before, and not later than ,the expiration of the initial
contract. A fee of $250 shall be filed with the renewal
application. The document shall not be considered officially
received and accepted until the appropriate fee is submitted.
Upon proper showing of full compliance with the initial
contract of exemption, the contract may be approved by the
board for an additional period of up to but not exceeding five
years.

Effective Date of Contract; Project Completion
Report

A. The owner of a new manufacturing establishment or
addition shall document the beginning date of operations and
the date that construction is substantially complete. The
owner must file that information with OBD on the
prescribed project completion report form not later than 90
days after the beginning of operations, completion of
construction, or receipt of the fully executed contract,
whichever occurs last. A project completion report fee of
$250 shall be submitted with the form. The deadline for

B. Eligibility of the applicant and the property for
renewal of the exemption will be reviewed by the board
using the same criteria that was used for the initial contract,
and based upon the facts and circumstances existing at the
time the renewal application is considered. The property
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 ECONOMIC DEVELOPMENT
cancellation of a contract for cessation of the manufacturing
operation, or retirement of any portion of the exempted
equipment. Failure to report any material changes constitutes
a breach of contract and, with approval by the board, shall
result in restriction or termination.

exempted for the renewal period may be increased or
decreased based upon review of the renewal application. The
term of the renewal contract shall be reduced by one year for
each calendar month, or portion thereof, that the renewal
application is filed late. The board may impose any other
penalty for late renewal submission that it deems
appropriate.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Commerce and Industry, LR
20:867 (August 1994), amended by the Department of Economic
Development, Office of Business Development, LR 37:2380
(August 2011), LR 41:2319 (November 2015), LR 43:1137 (June
2017).

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Pan 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by the Department of Economic Development, Office
of Commerce and Industry, LR 20:867 (August 1994), amended by
the Department of Economic Development, Office of Business
Development, LR 37:2379 (August 2011), LR 41:2319 (November
2015), LR 43:1137 (June 2017).

§531.

§535.

A. In the event an applicant should sell or otherwise
dispose of property covered by a contract of exemption, the
purchaser of the said plant or property may, within three
months of the date of such act of sale, apply to the board for
a transfer of the contract. A fee of $250 shall be filed with a
request to transfer the contract. The board shall consider all
such applications for transfer of contracts of exemption
strictly on the merits of the application for such transfer. No
such transfer shall in any way impair or amend any of the
provisions of the contract so transferred other than to change
the name of the contracting applicant. Failure to request or
apply for a transfer within the stipulated time period shall
constitute a violation of the contract.

Violation of Rules or Documents; Final
Inspection

A. The board reserves the right, on its own initiative or
upon written complaint of an alleged violation of terms of
tax exemption rules or documents, to conduct a final
inspection. During the final inspection OBD may cause to be
made a full investigation on behalf of the board and shall
have full authority for such investigation including authority
to demand reports or pertinent records and information from
the applicant and complainants. Results of the investigation
will be presented to the board.
B. All contracts of exemption shall be subject to the final
inspection. If a final inspection indicates that the applicant
has violated any terms of the contract or rules, or that the
exempt facility is not engaged in manufacturing, the board
may conduct a hearing to reconsider the contract of
exemption, after giving the applicant not less than 60 days
notice.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Commerce and Industry, LR
20:868 (August 1994), amended by the Department of Economic
Development, Office of Business Development, LR 37:2380
(August 2011), LR 41:2319 (November 2015), LR 43:1137 (June
2017).

C. If the board determines that there has been a violation
of the terms of the contract or the rules, that the property
exempted by the contract is not eligible because it is not
used in a manufacturing process, or that the facility has not
commenced or has ceased manufacturing operations, the
board may terminate or otherwise modify the contract.

§537.

AUTHORITY NOTE: Promulgated in accordance with Article
VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the Department of
Commerce, Office of Commerce and Industry, Division of
Financial Programs Administration, September 1974, amended by
the Department of Economic Development, Office of Business
Development, LR 37:2380 (August 2011), LR 43:1138 (June
2017).

Reporting Requirements for Changes in
Operations

Chapter 7. Enterprise Zone Program

A. OBD is to be notified immediately of any change
which affects the tax exemption contract. This includes any
changes in the ownership or operational name of a firm
holding a tax exemption contract. A fee of $250 shall be
filed with a request for any contract amendment, including
but not limited to, a change of ownership, change in name,
or change in location. The board may consider restrictions or
Louisiana Administrative Code

June 2017

Reporting to the Parish Assessor

A. The applicant shall file annually with the assessor of
the parish in which the manufacturing establishment is
located, a complete taxpayer’s report on forms approved by
the Louisiana Tax Commission, in order that the exempted
property may be separately listed on the assessment rolls.

AUTHORITY NOTE: Promulgated in accordance with Article
VU, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
HISTORICAL NOTE: Adopted by the State Board of
Commerce and Industry, December 9, 1946, amended and
promulgated by the Department of Economic Development, Office
of Commerce and Industry, LR 20:867 (August 1994), amended by
the Department of Economic Development, Office of Business
Development, LR 37:2380 (August 2011), LR 43:1137 (June
2017).

§533.

Sale or Transfer of Exempted Manufacturing
Establishment

§701.

Scope and Qualifications

A. Intent of Program. The intent of the program is to
stimulate employment for residents in depressed areas of the
state that are designated as enterprise zones by providing tax
incentives to a business hiring from these areas.

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