Industrial Tax Exemption

Overview

The Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) is an original state incentive program which offers an attractive tax incentive for manufacturers within the state. The program abates, up to ten years, local property taxes (Ad Valorem) on a manufacturer’s new investment and annual capitalized additions related to the manufacturing site.

Eligibility

Businesses must be classified as a manufacturer or related to the manufacturing project in order to receive the benefits of the ITEP program. ITEP is only available for activities related to manufacturers:

  • A manufacturer, as identified by the federal government, has a North American Industry Classification System (NAICS) code that begins with 31, 32 or 33.
    • The NAICS is used as a preliminary qualification criterion. If the company does manufacturing but does not have the manufacturing NAICS code, and 50+% of the activities at the site are considered manufacturing, then additional steps are required to determine eligibility.
      • A detailed description of the activities to be considered manufacturing is provided by the company.
      • A site inspection will be performed by LED to determine if the activity is manufacturing.
  • The program can be used by manufacturers new to Louisiana and is also available to existing manufacturers in Louisiana with new investments and miscellaneous capital additions to existing facilities.

Program Rules:

All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register.

How to Apply

The Industrial Tax Exemption Program has two possible forms of application – an application without an advance, or an application with an advance. Begin the process by first determining if the project meets the criteria for a Miscellaneous Capital Addition, as follows:

  • Will the project cost less than $5,000,000?
  • Will the project take no longer than 18 months to complete?
  • No other incentive programs are associated with this project.

If the anticipated project meets these criteria, proceed with the project, and once the project is completed (finished or operational), within 90 days of completion. You may download the ITEP application or apply online and submit fee.

If the project does not meet the above criteria of a Miscellaneous Capital Addition or the project includes another incentive program, then getting started is a click away. Submit your advance notification and pay online before you start construction, hire, and/or make purchases towards the project’s capital investment.

  • Once the project is completed, (finished or operational), then the application is filed within 90 days with LED.

View all of the fees associated with this incentive.

View the disclosure authorization form.

This program is administered by Louisiana Economic Development through the Board of Commerce & Industry.

For information regarding the Industrial Tax Exemption Program, contact the program administrator:

Lori Weber
Business Development Officer
225.342.6442
lori.weber@la.gov