Louisiana Economic Development (LED) and the State of Louisiana, through special legislative session action, have recently announced several revisions to the state tax structure. These changes aim to create structural reforms that will provide Louisiana with long-term fiscal stability and one of the most competitive tax codes in the nation.
Some of the changes Louisiana has implemented are as follows:
- Property Tax HB 11: Provides for the homestead exemption, special assessment level, and other property tax exemptions for purposes of determining ad valorem taxation of certain property
- Sales Tax HB 8 & HB10: Levies sales and use tax on certain digital products and services and provides for the rate of the state sales and use tax and for exemptions, exclusions, credits, and rebates claimed against sales and use taxes
- Corporate Income Tax HB 2: Provides a flat rate for purpose of calculating corporate income tax and terminates certain corporate income tax exemptions, deductions and credits.
These changes follow important revisions to the Louisiana Industrial Tax Exemption Program (ITEP) earlier this year, established by an Executive Order and planned to be adopted as a permanent rule in April 2025. Some of these revisions include:
- Elimination of job requirements needed to qualify for the ITEP program.
- Reducing the steps to be awarded an ITEP incentive from 15 steps to 9 steps.
- Establishing a Local ITEP Committee comprised of key stakeholders to help streamline the local review process before the Louisiana Board of Commerce & Industry’s review.
- Allowing companies with existing ITEP contracts to opt out of the previous job requirement criteria.
- Establishing a Mega Project incentive level, which incentivizes a company with up to a 93% exemption if the project is qualified.
These changes reflect a push to make Louisiana a more attractive state for business with a nationally competitive tax structure and revamped incentive programs, showcasing the state’s intent to become an economic powerhouse in the South.
