Q: What is Exhibit “A” and how do I obtain Exhibit “A”?
A: Exhibit “A” is a fully executed agreement between the department and the applicant specifying the terms and conditions of the granting of the exemption contract.
To obtain Exhibit “A”, LED must first receive and review the application and LDR must subsequently review and issue a letter-of-no-objection or a letter-of-approval. Upon receiving, LED will draft the Exhibit “A” which will be returned to the company for signature. After all required signatures are obtained, the Exhibit “A” may be sent to the Division of Administration for approval.
Q: What types of jobs are eligible to be considered new jobs?
A: New jobs must be permanent, full-time, based at the manufacturing site, and may be employed directly, by an affiliate, or through qualified contract labor. Construction jobs are not considered new jobs.
Q: My company currently has an active ITE contract. What is required to transfer the contract or specific assets relate to a contract?
A: Amendments to contracts must be approved by the Board. The appropriate form must be filed. For contracts with Advance Notifications filed after June 24, 2016, local endorsement is necessary if the parish in which the contract is located changes.
Q: What happens if a company, with an active ITE contract, changes their name or changes the location of the contract site?
A: Amendments to contracts must be approved by the Board. The appropriate form must be filed. For contracts with Advance Notifications filed after June 24, 2016, local endorsement is necessary if the parish in which the contract is located changes.
Q: When does my contract become active?
A: For all parishes except Orleans, the contract effective date is December 31 of the year in which the assets become operational or complete. For Orleans Parish, the contract effective date is July 1 of the year in which the assets become operational or complete.
Q: Can my contract be renewed?
A: If the Advance Notification was filed on or prior to June 24, 2016, your contract may be renewed for 5 years at 100% abatement. If the Advance Notification was filed after June 24, 2016 and before July 1, 2018, Exhibits “A” and “B” will determine the length and terms of renewal. These contracts may be renewed for up to three years at up to 80% abatement. If the Advance Notification was filed on or after July 1, 2018, your contract may be renewed for 5 years at 80% abatement.
Q: Is a site inspection by LED required and what will happen during the inspection?
A: A site inspection may be performed by LED to determine if the activity at the site is considered manufacturing. LED will want to see specific assets that are being exempted by the contract and an overview of the manufacturing process.
Q: What are the fees associated with applying for the Industrial Tax Exemption Program?
A: The fees associated with the Industrial Tax Exemption can be found here.
Q: Who is the Board of Commerce & Industry?
A: The Board is composed of individuals appointed by the governor of Louisiana, who review and approve applications for certain tax incentive programs, including Enterprise Zone, Industrial Tax Exemption, Quality Jobs and Restoration Tax Abatement.
Q: If my project is running behind, is there a way to extend the Estimated Project Ending Date in the Advance Notification form?
A: Yes, if the Estimated Project Ending Date stated in the Advance Notification has not yet passed, a Project Extension Request form can be electronically filed via Fastlane NextGen. Once the form is reviewed and processed, the date will automatically update.