Restoration Tax Abatement
The Restoration Tax Abatement, or RTA, program provides a five-year abatement of ad valorem property taxes on the renovations and improvements of existing commercial structures and owner-occupied residences.
- Equipment that becomes an integral part of that structure can qualify for this exemption
- Acquisition cost of the structure or the land cannot qualify for this exemption
- Option for a five-year renewal with local governing authority approval
This incentive is open to all Louisiana businesses and homeowners with existing structures to be expanded, restored, improved or developed in qualifying locations, and as approved by the local governing authority.
Qualifying locations for properties include:
- Economic Development Districts*
- Downtown Development Districts
- Historic Districts
- Listed on the National Register of Historic Places
*Different from Enterprise Zones and Economic Development Zones
- Actual building and materials investment
- Machinery and equipment investment
- Labor and engineering expenses
- Property taxes paid on the project improvements disqualify eligibility to apply
- Movable and personal property
First, a company must submit an Advance Notification and pay the filing fee online before construction begins. Once the project is completed, finished or operational, the application is filed within 90 days with Louisiana Economic Development (LED).
If you have appointed a representative other than a company official as your contact designee, a Disclosure Authorization is required. If you apply online, you must sign and mail the Official's Declaration. You may also download the application and mail it to LED.
After we receive your Advance Notification and fee, you will be ready to start the next steps:
1. Begin your project. This includes construction, purchase of equipment, building and materials items, and other capital investment transactions.
2. Submit your application. After the completion of your project, submit your application with fee no later than 90 days after your project completion date. View the RTA Fee Sheet for fees associated with this application.
3. Review of application. Upon receipt of your application and fee, we will review your application for compliance with the program rules and then forward to the local governing authority for an approval resolution. Upon receipt of an approval resolution from the local governing authority, we will make a recommendation to the Board of Commerce and Industry.
4. Board review. Your application will be presented to the Board of Commerce and Industry for consideration of contract approval. The Board convenes every other month, meeting six times a calendar year.
5. Issue contract. Upon approval of your application by the Board of Commerce and Industry, a contract will be mailed to you for your signature. You will return four complete sets of the contract with original signature pages (five complete sets, if property is located in Orleans Parish). We will return a fully executed contract signed by the governor. The contract is for five years and may be renewed for an additional five years with local governing authority, Board and the governor's approval.
6. Submit Project Completion Report. File with LED within 90 days after the beginning of operations, completion of construction or receipt of the fully executed contract whichever occurs last.
7. Submit Affidavit of Final Cost. File with LED within 6 months of the beginning of operations, completion of construction, or within 90 days of the receipt of the executed contract, whichever occurs last. This form requires a fee of $100.
8. Renewal Contract. The same approval process, as used for the original application and contract will be followed for renewal contracts. Renewal Applications must first be filed with LED and then sent to the local governing authority for approval. If approved by the local governing authority, the application will be presented to the Board of Commerce and Industry for approval. The Renewal Application requires a $50 fee.
9. Board Review. Once the renewal application is approved by the Board of Commerce and Industry, contracts are mailed to all applicable parties for signatures. We will return a fully executed contract signed by the governor.
Q: I purchased a condo property that has an active Restoration Tax Abatement (RTA) contract with the original owner. Can the contract be transferred to the new owner?
A: Yes. The contract can be transferred to the new owner by submitting a request to LED and receiving approval from your local governing authority and the Board of Commerce and Industry. Complete an RTA Contract Transfer Form and submit to LED.
Q: I purchased an uninhabited and run-down property to restore for use as a hotel. Is the purchase price of the property part of my investment for claiming the Restoration Tax Abatement?
A: No. Only improvements to the existing structure are eligible for the abatement. Acquisition cost of the structure or the land is not eligible for the abatement.
Q: What if I've already paid property taxes on the improvements that I am seeking to abate? Can I still qualify for the abatement?
A: The tax abatement is not available if property taxes have been paid on the improvements made by the project. If, however, the application process has not been completed and those property taxes for the project are due, contact your local assessor to determine how to pay these taxes under protest and what steps may need to be taken to maintain eligibility.
Submit the Certification Form stating that taxes have not been paid.
Q: If my property is not located in an economic development district can it still be considered for the Restoration Tax Abatement?
A: If your structure is not currently located in an economic development district, contact your local governing authority to see if this may be an option.
Thank you for your interest in Louisiana's Restoration Tax Abatement Program. Below is a list of frequently asked questions about the program and contact information for the administrator of the program.
Q: What is Louisiana's Restoration Tax Abatement Program?
A: The Restoration Tax Abatement Program (RTA) is an incentive created for municipalities and local governments to encourage the expansion, restoration, improvement and development of existing structures in downtown development districts, economic development districts and historic districts.
Q: How do I apply for the Louisiana Restoration Tax Abatement?
A: Submit an Advance Notification form and a $100 filing fee prior to beginning the project (i.e., before starting construction). LED will acknowledge receipt and send you instructions for the application process.
Q: What is an Advance Notification Form?
A: A document notifying LED of an intended project before any construction or capital expenditure has been made.
Q: Where can I find the Advance Notification form?
A: The Advance Notification form should be completed through FastLane, LED's secure online filing system.
Q: What is an Endorsement Resolution?
A: A written motion issued by the local governing authority approving participation in the Restoration Tax Abatement Program. It may also be called an Approval Resolution.
Q: What benefits are made available by participating in the Restoration Tax Abatement Program?
A: Five-year abatement of ad valorem property taxes on the increased value of the property from the restoration, improvement, development or expansion of an existing structure.
Q: Can someone other than the property owner or company representative file an RTA application?
A: Yes. If an application is being prepared and/or submitted by someone other than the owner of the property, submit a Sample Resolution of the Board of Directors or Sample Resolution of Property Owners and related documents to execute the application on behalf of the company or individual owner of the property for which the application is being filed.
- Submit Advance Notification with fee either online or by mail, and then begin the project.
- Complete the application and submit the fee and all required documentation either online or by mail for LED review.
- Local governing authority approves application.
- Board of Commerce and Industry reviews application.
- If approved, the state executes contracts and mails to the applicant, assessor, local governing body and others, as required.
- Submit a Project Completion Report to LED three months after completion and an Affidavit of Final Cost to LED six months after completion.