La. Revenue and Taxation § 47:3202

Current with changes from the 2024 Legislative Session

Section 47:3202 - Requirements for exemption

A. A contract of exemption from taxation may be entered into by the Board of Commerce and Industry under this Chapter only if each of the following requirements are met by the manufacturing establishment, headquarters, or warehousing and distribution establishments seeking such exemption:

(1) The manufacturing establishment, headquarters, or warehousing and distribution establishment must either be located in another state or be located in Louisiana and contemplating locating in another state which has equivalent or comparable advantages as exist at the particular area in Louisiana in which the establishment is or seeks to be located.

(2) The state in which the establishment is located or is contemplating locating must have a total state, parish (county) and local tax structure which offers a greater tax advantage to such establishment than does the taxing structure of Louisiana.

(3) In the case of headquarters, or manufacturing establishment or warehousing and distribution establishment, the applicant for tax equalization may be any form of business entity. For purposes of this Chapter, "business entity" shall mean any individual, firm, joint venture, association, corporation, estate, partnership, business trust, receiver, syndicate, or any other legal business entity.

(4) The sites under consideration in Louisiana and the competing state must be valid and viable for the proposed operations.

(5) The secretary of the Department of Economic Development shall make a recommendation to the governor to extend an invitation to apply for tax equalization.

(6) An invitation from the governor to apply must have been received by the business entity.

B. Each applicant shall submit to the Department of Economic Development such certified statements and substantiating documents as may be required to establish that each of the requirements of this Section is satisfied.

C. Any manufacturing establishment or headquarters or warehousing and distribution establishment applying for an exemption shall submit information indicating a good faith effort on the part of the applicant to contract with or to do business with businesses domiciled in the state of Louisiana.

D. Any applicant whose primary business endeavor is the commercial treatment, disposal, or destruction of hazardous waste generated from outside Louisiana, applying for an exemption shall submit information relative to the impact the manufacturing establishment or headquarters or warehousing and distribution establishment has had and will have on the environment and the history of compliance with environmental laws in this state or any other state where the applicant has operated.

E.

(1) Any applicant applying for an exemption or state-sponsored subsidy shall designate and set a goal for awarding to economically disadvantaged businesses an amount not less than ten percent of the value of the anticipated total procurement of goods and services, including construction, for the exempted project, but without added expense, provided such certified economically disadvantaged businesses are majority owned and operated by Louisiana residents and are competent to deliver the required products and services in a timely manner and perform the required work in a timely manner during construction and operation of the project. The affected applicant shall submit evidence of compliance with this Subsection to the Board of Commerce and Industry.

(2) The Board of Commerce and Industry and the Division of Economically Disadvantaged Business shall adopt rules and regulations pertaining to the identification and certification of economically disadvantaged businesses which qualify under this Chapter.

(3) The Board of Commerce and Industry and the Division of Economically Disadvantaged Business shall take into consideration whether economically disadvantaged contractors are available in granting the exemptions under this Chapter.

La. Revenue and Taxation § 47:3202

Acts 1966, Ex.Sess., No. 12, §2. Amended by Acts 1976, No. 381, §1; Acts 1985, No. 3, §1, eff. May 31, 1985; Acts 1987, No. 307, §1; Acts 1989, No. 491, §1; Acts 1993, No. 400, §1, eff. July 1, 1993; Acts 1998, No. 32, §1; Acts 1998, No. 60, §1; Acts 2005, No. 403, §1.

Acts 1966, Ex.Sess., No. 12, §2. Amended by Acts 1976, No. 381, §1; Acts 1985, No. 3, §1, eff. 5/31/1985; Acts 1987, No. 307, §1; Acts 1989, No. 491, §1; Acts 1993, No. 400, §1, eff. 7/1/1993; Acts 1998, No. 32, §1; Acts 1998, No. 60, §1; Acts 2005, No. 403, §1.