La. Revenue and Taxation § 47:4304

Current with changes from the 2024 Legislative Session

Section 47:4304 - Requirements for exemption

A. In determining whether to recommend a contract of exemption from taxation, the secretary of economic development and the Board of Commerce and Industry, by rule and in its deliberations, and in determining whether to enter into such a contract of exemption, the governor and the Legislative Budget Committee may consider any and all factors which are relevant to the continued operations of the applicant, or expanded operations of the applicant, including but not limited to the following:

(1) The benefits to the state in terms of continued employment opportunities, investment in, and modernization of, facilities, expenditures for goods and services, and contributions to the revenue base of the state and local governments and the creation of new and additional permanent jobs.

(2) Competitive conditions existing in other states or in foreign nations.

(3) The economic viability of the applicant, and the effect of any tax exemptions on economic viability.

(4) The effects on applicant of temporary supply and demand conditions.

(5) The effect of casualties and/or natural disasters.

(6) The effects of United States and foreign trade policies.

(7) The effect of federal laws and regulations bearing on the economic viability within the state of the applicant.

(8) The competitive effect of like or similar exemptions granted to other applicants.

(9) Those terms and conditions of the contract that shall provide for guarantees of employment and for clawbacks in the event of nonperformance of such guarantees and such other terms and conditions as shall be favorable to the continued operation and staffing of the business.

B. No contract of exemption shall be entered into pursuant to this Chapter with any person which has been assessed any criminal penalties, pursuant to R.S. 30:2025, within twenty-four months preceding the application. The record of civil violations, pursuant to R.S. 30:2025, shall be considered before entering into a contract of exemption. Nor shall any person in default on any filing or payment to the state, to any of its agencies, or to any of its political subdivisions following a final assessment or judgment be eligible to enter into a contract pursuant to this Act.

C. The board shall adopt rules and regulations requiring that contracts entered into hereunder shall require a good faith effort on the part of the person to contract with or to do business with businesses domiciled in the state of Louisiana.

D.

(1) The board shall by rule require that any person whose primary business endeavor is the commercial treatment, disposal, or destruction of hazardous waste generated from outside Louisiana, and applying for the benefits of this Chapter shall submit information relative to the impact the person's business has had or will have on the environment and the person's history of compliance with environmental laws in this state or any other state where the applicant has operated.

(2) The board shall require that in contracting with or in doing business with another business, each entity applying for an exemption pursuant to this Chapter shall agree to give a right of first refusal to businesses domiciled in Louisiana, provided the Louisiana business can perform such contract or business activity under similar terms and conditions and at no additional cost to the entity granted the exemption under this Chapter.

E.

(1) The board shall adopt rules and regulations requiring that any person applying for the benefits of this Chapter shall designate and set aside for awarding to minority-owned businesses an amount not less than ten percent of the value of the anticipated total procurement of goods and services including construction for the exempted project without added expense; provided such minority-owned businesses are majority owned and operated by Louisiana residents and are competent to deliver the required products and services in a timely manner and perform the required work in a timely manner during the construction and operation of the project.

(2) The Board of Commerce and Industry and the Governor's Office of Minority Business Enterprise shall adopt rules and regulations pertaining to the identification and certification of minority-owned businesses which qualify under this Chapter.

(3) The Board of Commerce and Industry and the Governor's Office of Minority Business Enterprise shall take into consideration whether minority contractors are available in granting the exemptions under this Chapter.

La. Revenue and Taxation § 47:4304

Added by Acts 1982, No. 773, §1; Acts 1987, No. 356, §1; Acts 1987, No. 535, §1; Acts 1987, No. 921, §1; Acts 1993, No. 400, §1, eff. July 1, 1993; Acts 1998, No. 32, §1; Acts 2005, No. 403, §1.

Added by Acts 1982, No. 773, §1; Acts 1987, No. 356, §1; Acts 1987, No. 535, §1; Acts 1987, No. 921, §1; Acts 1993, No. 400, §1, eff. 7/1/1993; Acts 1998, No. 32, §1; Acts 2005, No. 403, §1.