La. Admin. Code tit. 13 § I-541

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

Section I-541 - [Effective until 4/20/2025] Definitions

Addition to a Manufacturing Establishment-

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.

Committee-Local ITEP Committee

Department-Louisiana Economic Development.

Establishment-an economic unit at a single physical location.

Exhibit A-a resolution from the Local ITEP Committee signifying its approval or denial of an exemption contract for a specific ITEP application.

Integral-required to make whole the product being produced.

LDR-Louisiana Department of Revenue.

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.

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 or 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 Louisiana 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.

La. Admin. Code tit. 13, § I-541

Promulgated by the State Board of Commerce and Industry and the Department of Economic Development, LR 50, exp. 10/21/2024 (Emergency), Promulgated by the Board of Commerce and Industry and the Louisiana Economic Development, LR 51, exp. 4/20/2025 (Emergency).

AUTHORITY NOTE: Promulgated in accordance with Article VII, Part 2, Section 21(F) of the Louisiana Constitution of 1974.