La. Admin. Code tit. 13 § I-3505

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-3505 - Eligibility Requirements

A. An employer must meet two sets of requirements.

1. Qualifying Manufacturer

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; local solid waste disposal, local sewer systems, and local water systems business;

vi. non-profit organizations;

vii. gaming industry (713219 and 721120);

viii. attorneys.

c. The department may promulgate rules annually listing other employers, professions or service industries which are eligible and not eligible for any credit pursuant to this Chapter, and such rules shall not take effect unless presented to LEDC and approved by both the House Ways and Means Committee and the Senate Committee on Revenue and Fiscal Affairs in a public meeting held for such purpose.

2. Qualifying Event

a. Efficiency. The employer must establish an increase of greater than 10 percent in the maximum capacity or efficiency of the facility; or

b. Investment. An employer with multi-state operations and an established competitive capital project must make an approved investment of at least $5 million dollars in the facility.

B. No contract or certification shall be executed with an employer who:

1. has defaulted on or otherwise not repaid any loan or other obligation involving public funds, nor with any employer who has ever declared bankruptcy under which an obligation of the employer to pay or repay public funds or monies was discharged as part of such bankruptcy; or

2. is in default on any filing or payment with or to the state or any of its agencies or political subdivisions and in which an assessment or judgment that is final and non-appealable has been rendered, and remains outstanding, in favor of the state, or any of its agencies, or political subdivisions.

C. No project placed in service before July 1, 2011 shall be eligible for the tax credits authorized pursuant to this program.

D. If approved and subsequently issued a tax credit allocation letter, an applicant shall commit to continue business operations in the state for at least the five year period of the tax credit allocation.

1. If an applicant fails to continue business operations in the state, it may retain credits already granted, but the department reserves the right to withhold previously reserved, but not yet granted tax credits.

La. Admin. Code tit. 13, § I-3505

Promulgated by the Department of Economic Development, Office of the Secretary, Office of Business Development and the Louisiana Economic Development Corporation, LR 36:475 (March 2010).

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:104, 36:108, and 51:2332 et seq.