With the stroke of a pen, Gov. Jeff Landry has redefined the rules of Louisiana’s Industrial Tax Exemption Program, or ITEP.
Landry’s executive order—signed in the middle of the Louisiana Association of Business & Industry annual meeting in February—eliminates rules that require participating businesses to prove they will create and retain local jobs. That means companies can now apply for tax exemptions for most any large-scale investment in Louisiana. It does specify that maintenance expenses, environmental compliance upgrades and replacement parts that are not part of an extensive restoration do not qualify for ITEP awards.
“This program is about capital investment,” Landry says. “It is not about job creation.”
Also, ITEP applications will now be sent to a local industrial board comprising representatives from the taxing agencies in that parish. The board will have 45 days to consider it before passing it on to the state industrial board. If there is ever a disagreement between a local industrial board and the state industrial board, the governor will make the final decision.
Read the full story about why the ITEP order matters from the latest edition of Business Report. Send comments to editor@businessreport.com.
