DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 464 Reengrossed 2021 Regular Session Ivey
Abstract: Establishes the La. Capital Investment Program which provides for the consideration and
approval of standard, local, and executive capital investment project ad valorem tax
exemptions.
Present constitution provides for the exclusive list of ad valorem tax exemptions.
Proposed law establishes a capital investment program to exempt certain businesses in qualifying
industry sectors from ad valorem property taxes.
Proposed law requires the Department of Economic Development (Dept.), to adopt and promulgate
rules to administer the program in compliance with proposed law.
Proposed law establishes a notification process that requires the Dept. to notify parish authorities
within 10 days of the creation or modification of a capital investment program.
Proposed law further provides that the notification shall include program details, deadlines, language
for resolutions, and specific forms.
Proposed law establishes an enrollment process for the program. A parish can enroll in a program
upon the approval of all parish authorities evidenced by a resolution submitted to the Dept.
Proposed law provides that if a parish disapproves participation in a program, it shall submit a
resolution to the Dept. stating such. Proposed law further provides that if no parish authority notifies
the Dept. that it disapproves participation within 60 days of the program's effective date, the parish
shall be automatically enrolled.
Proposed law authorizes a parish to change disapproval to approval by rescinding the disapproval
resolution.
Proposed law authorizes a parish to withdraw from a program within five years following
enrollment. Proposed law further provides a parish can withdraw if all parish authorities submit a
resolution stating such. The withdrawal is effective 90 days following the Dept.'s receipt of the
resolution.
Proposed law provides that if the legislature passes a law that substantively changes a capital
investment program, a parish may withdraw from the program by resolution stating such. The resolution must be submitted no later than 60 days after the effective date of the applicable
legislation.
Proposed law identifies businesses that constitute the technology, telecommunication, healthcare,
logistic, warehouse, and distribution sectors for the purposes of the program.
Proposed law creates a standard ad valorem tax exemption for capital investment projects.
Proposed law requires the Dept. to establish an application procedure for the standard exemption in
accordance with the constitution. Proposed law further provides that the Board of Commerce and
Industry shall review a standard ad valorem tax exemption in a timely manner and confirm program
eligibility for each application. Within 10 days of confirmation, the board shall provide the applicant
and local authorities with a copy of the conditional approval.
Proposed law creates a local ad valorem tax exemption for capital investment projects.
Proposed law establishes an application for a local ad valorem tax exemption and requires the Dept.
to design and provide the application forms.
Proposed law requires the Dept. to forward a copy of an application to each impacted local authority
that levies a millage and in whose district the project will be located.
Proposed law requires the Dept. to provide the local governing authority and all relevant political
subdivisions with an analysis of every proposed project requesting an exemption in the parish.
Proposed law requires a local authority within 60 days of receipt to review each project application
in conjunction with the Dept.'s analysis and issue a resolution or a letter, in the case of a sheriff,
approving or rejecting the application. During this time, local authorities may hold public meetings
to receive public input.
Proposed law provides that if the local authority approves the application, the local authority and the
applicant, with the assistance of the Dept., shall enter into a cooperative endeavor agreement
evidencing the exemption.
Proposed law requires the local authority to provide the board with a copy of the cooperative
endeavor agreement and a copy of any resolution or letter approving the exemption.
Proposed law creates an executive ad valorem tax exemption for capital investment projects.
Proposed law provides that the governor may offer any entity an executive exemption. The
exemption may be for up to 100% of the property taxes of the project and for a specific term to be
decided by the governor.
Proposed law requires local approval prior to the execution of the executive order providing for an
exemption. A local authority must evidence rejection of the exemption within 30 days of receipt or the exemption will be deemed approved.
Proposed law requires the executive exemption to be evidenced by a gubernatorial executive order
providing the terms and conditions of the exemption.
Proposed law requires the Dept. to produce a cost-benefit analysis for the project that specifically
identifies the projected state and local fiscal impact, information related to employment, state and
local revenues, state and local infrastructure requirements, and the effect of using state and local
public services.
Effective if and when the proposed amendment of Article VII, Section 21(O) of the Constitution of
La. contained in the Act which originated as House Bill No. 370 of this 2021 R.S. of the Legislature
is adopted at a statewide election and becomes effective.
(Adds R.S. 47:1721-1731)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Remove industrial manufacturers from industries eligible for the capital investment
project ad valorem tax exemption program.
2. Make technical changes.