The Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) offers manufacturers a powerful incentive to invest in Louisiana: an 80% property tax abatement for up to 10 years on qualifying new capital investments. The program is available to both new manufacturers entering the state and existing manufacturers expanding their facilities.
Benefit Structure:
- 80% ad valorem property tax exemption via an initial 5‑year contract.
- Option to renew for an additional 5 years (total of up to 10 years).
- Mega‑projects with $500M+ in capital expenditures may be eligible for an increased exemption of 93–100%.
Eligibility:
- Applicants must be manufacturers or directly involved in the manufacturing process at the project site.
- Businesses must have a NAICS code beginning with 31, 32, or 33 and provide a detailed project description of manufacturing activities.
- Only assets directly related to the manufacturing process are eligible. Land is not eligible.
2025 Program Updates:
- No job creation or payroll requirements to receive ITEP benefits.
- Project Applications are reviewed simultaneously by LED, the Local ITEP Committee, the Louisiana Department of Revenue, and the Louisiana Workforce Commission, then presented to the Louisiana Board of Commerce & Industry for consideration and submitted to the Governor for approval.
What Is the Local ITEP Committee?
Parishes may establish a Local ITEP Committee composed of representatives from the parish council or police jury, the school board, the sheriff, and the mayor (if applicable). The committee’s recommendation is non‑binding; final authority rests with the Board of Commerce & Industry and the Governor.
Contact:
Kristin Johnson — Program Administrator, Business Incentive Services
kristin.johnson@la.gov
225.342.2083
Hud Usie — Program Administrator, Business Incentive Services
hud.usie@la.gov
225.342.5399
For more information, visit the Industrial Tax Exemption Program.
