The chemical industry is the top provider of manufacturing jobs in Louisiana, supports nearly $80 billion in annual sales for businesses and contributes more than $1.1 billion to the state treasury.
It also contributes at least $959 million to local governments each year and supports two out of every seven jobs in the state, according to a new study conducted by economist Loren Scott and commissioned by the Louisiana Chemical Association.
“Chemical companies want to continue improving, expanding and investing in our state,” says LCA President Greg Bowser in a news release accompanying the study, released today. “For our jobs, our cities and our children’s future, we should be doing everything in our power to make that happen.”
The LCA study comes just as new rules for the controversial Industrial Tax Exemption Program await approval from the State Board of Commerce and Industry, and the Baton Rouge Metro Council prepares to take up a proposal that would allow it approve any ITEP applications that the state has already signed off on.
Scott credits some of the chemical industry’s growth to ITEP, which provides companies up to 100% property tax abatement for a specific period of time. Though ITEP is not universally supported, Scott says his numbers show strong ITEP parishes to be flourishing. For example, the eight parishes with the most ITEP projects collect “much more” property taxes per capita than the statewide average of $941.
Changes to ITEP threaten further growth, Scott contends, noting Texas—which has unified sales tax collection, no corporate or personal income taxes, and the second-best rated business climate—is still the top chemical producer.
