Louisiana Administrative Code
Title 13 - ECONOMIC DEVELOPMENT
Part I - Financial Incentive Programs
Chapter 5 - Industrial Ad Valorem Tax Exemption Program
Section I-502 - Definitions
Addition to a Manufacturing Establishment-
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;
b. a capital expenditure for property that is directly related to the manufacturing operations of an existing manufacturing establishment; or
c. an installation or physical change made to a manufacturing establishment that increases its value, utility or competitiveness;
2. maintenance capital, required environmental 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;
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.
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 purchasing or improving real property and tangible personal property, whose useful life exceeds one year and which is used in the conduct of business.
Department-Louisiana Department of Economic Development.
Establishment-an economic unit at a single physical location.
Exhibit A-a fully executed agreement between the department and the applicant specifying the terms and conditions of the granting of the exemption contract.
Integral-required to make whole the product being produced.
Job-positions of employment that are:
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. employed directly, by an affiliate or through contract labor;
5. based at the manufacturing establishment;
6. filled by a United States citizen who is domiciled in Louisiana or who becomes domiciled in Louisiana within 60 days of employment; and
7. any other terms of employment as negotiated in the exhibit A, including a requirement that in order to qualify as a job, a basic health benefits plan is or has been offered in conjunction with the position of employment.
Local Governmental Entity-the parish governing authority, school board, sheriff, and any municipality in which the manufacturing establishment is or will be located.
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.
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.
Mega-Project-a manufacturing establishment that provides all of the following:
1. 500 jobs, employed directly, only, and otherwise meeting the definition of jobs, which shall generate a minimum of $20,000,000 in net new payroll within three years of the beginning of operations; and
2. a minimum of $100,000,000 in capital expenditures.
Obsolescence-the inadequacy, disuse, outdated or non-functionality 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.
Qualified Disaster-
1. a disaster which results from:
a. an act of terror directed against the United States or any of its allies; or
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;
2. any disaster which, with respect to the area in which the manufacturing establishment 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. a disaster which is determined by an applicable federal, state, or local authority (as determined by the secretary) to warrant assistance from the federal state or local government or agency of instrumentality thereof; or
4. any other extraordinary event that destroys or renders all or a portion of the manufacturing establishment inoperable.
Rehabilitation-the extensive renovation of a building or project that is intended to cure obsolescence or to repurpose a facility
Required Environmental Capital Upgrades-upgrades required by any state or federal governmental agency in order to avoid fines, closures or other penalty. Environmental upgrades demonstrated to be in excess of state and federal governmental agency requirements shall not be considered required environmental capital upgrades.
Restoration-repairs to bring a building or structure to at least its original form or an improved condition.
Secretary-secretary of the Louisiana Department of Economic Development.
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.
AUTHORITY NOTE: Promulgated in accordance with Article VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.
