Louisiana Administrative Code › Title 13 - ECONOMIC DEVELOPMENT › Part I - Financial Incentive Programs › Chapter 5 - Industrial Ad Valorem Tax Exemption Program › Section I-502 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
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.