Industrial Tax Exemption Program (ITEP)

Industrial Tax Exemption Program (ITEP)

Offers Louisiana manufacturers generous property tax abatement for new facility investment through a renewal pathway.

Louisiana's Industrial Tax Exemption Program (ITEP), administered by Louisiana Economic Development (LED), provides an 80% property (ad valorem) tax abatement to manufacturers investing in new or improved facilities in Louisiana. The initial exemption term is up to five years and may be renewed for an additional five years, yielding a maximum of ten years of abatement. Mega-projects with capital expenditures of $500 million or more may qualify for a 93–100% exemption. Under the 2024 Emergency Rules and 2025 ITEP Rules, there are no minimum job or payroll thresholds.

Eligibility is limited to manufacturers operating under NAICS codes 31, 32, or 33 — covering all manufacturing subsectors. Both new manufacturers entering Louisiana and existing Louisiana businesses making new facility investment qualify. The exemption applies to the assessed value of new investment in immovable property (buildings, equipment), reducing a company's local property tax burden for the duration of the contract. Local ITEP Committees at the parish level, including the school board, sheriff, and parish government, must review applications within a 45-day window; the Louisiana Department of Revenue (LDR) and Louisiana Workforce Commission (LWC) review concurrently under the 2025 rule streamlining (previously sequential).

Applications must be submitted through the FastLane NextGen portal before construction begins; retroactive applications are not accepted. The process involves ten steps, culminating in Board of Commerce and Industry approval and a Governor-signed contract. Annual property reports are due March 31 each year. Applicants should contact LED at 800-450-8115 or visit FastLane at fastlaneng.louisianaeconomicdevelopment.com to initiate the pre-construction filing.