Louisiana Administrative Code
Title 13 - ECONOMIC DEVELOPMENT
Part I - Financial Incentive Programs
Chapter 35 - Retention and Modernization Program
Section I-3503 - Definitions

A. Terms not otherwise defined in this Chapter shall have the same meaning given to them in R.S. 51:2399.1 unless the context clearly requires otherwise.

B. In this Chapter, the following terms shall have the meaning provided in this Section, unless the context clearly requires otherwise.

Department- Department of Economic Development.

Employer- a legal person who is engaged in a lawful enterprise not excluded by this Chapter that executes a contract with the department pursuant to the provisions of this Chapter.

a. Eligible Employers. To qualify for a contract pursuant to this Chapter, employers must be a manufacturer, as defined by North American Industry Classification System (NAICS) codes: 113310, 211, 213111, 541360, 311-339, 511-512 and 54171 as the employer's primary function.

b. Ineligible Employers. Employers engaged in the following professions or services, and identified by the following NAICS codes, shall not be eligible for any credits under this Chapter:

i. retail employers (44 and 45);

ii. business associations and professional organizations (8139);

iii. state and local governmental enterprises;

iv. real estate agents, operators and lessors;

v. automotive rental and leasing;

vi. local solid waste disposal, local sewer systems, and local water systems business;

vii. non-profit organizations; gaming industry (713219 and 721120); attorneys.

Facility- employer's manufacturing site that is the subject of the project.

LEDC-Louisiana Economic Development Corporation.

LDEQ-Louisiana Department of Environmental Quality.

LDR -Louisiana Department of Revenue.

LWC -Louisiana Workforce Commission.

Modernization -capitalized investment by an employer in technology, machinery, building and/or equipment that meets one of the following provisions:

a. an investment from a company with multi-state operations with an established competitive capital project program, which is approved by the Department; or

b. an increase in the maximum capacity or "efficiency" of the facility of greater than 10 percent. The modernization investment may be either voluntary or mandated by law but must result in the facility adopting "best practices" technology for its industry and the company shall establish that without the investment that the facility would be high risk for closure in the foreseeable future. Modernization does not include the replacing of existing technology with the same or similar technology;

i. increased "efficiency" claims must be supported by an independent third party analysis, such as an engineer's report, or by any other reasonable means;

ii. best practices may be verified by objective data provided by independent third parties knowledgeable in the industry such as LDEQ, or by any other reasonable means;

iii. the required efficiency increase includes a "green" option for a facility which affects a 10 percent or greater net reduction in nitrogen oxide (NOx) or volatile organic chemicals (VOC) without any increase in other emission sources from a facility in substantial compliance with its Title V Clean Air Act permit for the five preceeding calendar years in which the emission reductions are claimed.

Project- the design, development, installation and construction of a technology, machinery, building and equipment that results in a modernization of an employer's product line, unit or entire operations that require at least five million dollars of investment.

Qualified Expenditures - amounts classified as capital expenditures for federal income tax purposes plus exclusions from capitalization provided for in Internal Revenue Code Section 263(a)(1)(A) through (L), minus the capitalized cost of land, capitalized leases of land, capitalized interest, and the capitalized cost for the purchase of an existing building. When an employer purchases an existing building and capital expenditures are used to rehabilitate the building, only the costs of the rehabilitation shall be considered qualified expenditures. Additionally, an employer shall be allowed to increase his qualified expenditures to the extent an employer's capitalized basis is properly reduced by claiming a federal credit.

Secretary- Secretary of the Department of Economic Development, who is, by law, also the president of the Louisiana Economic Development Corporation.