Overview
The Modernization Tax Credit program provides a 5% refundable
state tax credit for manufacturers making capital investments to
modernize or upgrade existing facilities in Louisiana.
Benefits
Provides a one-time 5% refundable state tax credit on capital
expenditures taken over a five-year period (1% per year for five
years) for manufacturers making qualified capital investments of at
least $5 million.
Eligibility
To qualify for the program, a company must meet one of the
following criteria:
- Modernization helps improve entire facility's or specific
unit's efficiency by greater than 10%
OR
- The facility is in competition for capital expenditures within
a company's established, competitive capital expenditure budget
plan
There is a $10 million annual statewide cap on the program in
credits awarded to projects. Any unused credits can be rolled into
the next calendar year.
Projects determined to have the highest economic impact by
Louisiana Economic Development will be awarded pre-certification
credits on a rolling basis.
Pre-certification is required prior to final award of credits,
which are awarded only when the project has been placed in service.
Only projects placed in operation on or
after July 1, 2011 can qualify for the program.
For comprehensive rules and details on eligibility, please
review Related Content below or contact the
appropriate administrator.
How to Apply
To apply for the Modernization Tax Credit program, click here.
Applications are due 30 days prior to quarterly award dates for
review. Pre-certification of credits will be announced on March 31,
June 30, Sept. 30 and Dec. 31 of each calendar year.
A third-party validation of the proposed modernization (i.e.,
engineering company, consultant) must be submitted with the
application to show how the modernization will increase efficiency
by greater than 10%. The third-party validation is not needed if
plant officials can demonstrate that the plant is competing for
capital expenditures within a corporate capital expenditure
budget.
Related Content
Administration
This program is administered by Louisiana Economic
Development.
For more information on the Modernization Tax Credit, contact
the program administrator:
Tommy J. Kurtz, CEcD, MPA
225.342.5256
Tommy.Kurtz@la.gov
