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

Current through Register Vol. 50, No. 6, June 20, 2024
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.
AUTHORITY NOTE:
				  Promulgated in accordance with R.S. 36:104, 36:108, and
				  51:2332 et
				  seq.