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ACT No. 1902026 Regular Session
HOUSE BILL NO. 1088
BY REPRESENTATIVES BACALA, BAYHAM, BEAULLIEU, DEWITT, ECHOLS,
EGAN, FISHER, JACKSON, MOORE, OWEN, SAWYER, TAYLOR,
VENTRELLA, WYBLE, AND YOUNG
1 AN ACT
2 To amend and reenact R.S. 47:303.1(B)(5) and to enact R.S. 47:305.82, relative to sales and
3 use tax rebates; to authorize a state and local sales and use tax rebate on purchases
4 of certain equipment, machinery, materials, and other items used in aerospace
5 facilities and aerospace activities; to provide for requirements, limitations, and
6 conditions with respect to the rebate; to provide for duties and functions of Louisiana
7 Economic Development and the Department of Revenue with respect to the rebate;
8 to provide for administration of the rebate; to provide for issuance of direct payment
9 numbers to certain taxpayers; to provide for definitions; to provide for effectiveness;
10 and to provide for related matters.
11 Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 47:303.1(B)(5) is hereby amended and reenacted and R.S. 47:305.82
13 is hereby enacted to read as follows:
14 §303.1. Direct Payment Numbers
15 * * *
16 B.
17 * * *
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1 (5) A DP Number shall be issued to a taxpayer who has entered into an
2 agreement with the state pursuant to the provisions of R.S. 47:305.73 or 305.82 and
3 who obtains the required approvals and meets all of the qualifications provided in
4 this Section except Subparagraphs (1)(a) and (c) of this Subsection. The taxpayer
5 may possess the DP Number for the entire term of the agreement that the taxpayer
6 enters into pursuant to R.S. 47:305.73 or 305.82.
7 * * *
8 §305.82. Rebate; sales and use tax imposed by any taxing authority for purchases
9 of equipment and other items used in aerospace facilities and aerospace
10 activities
11 A. As used in this Section, the following terms shall have the meanings
12 ascribed to them in this Subsection unless the context clearly indicates otherwise:
13 (1)(a) "Aerospace activity" means any act or activity related to the research,
14 development, testing, manufacture, preparation, launch, operation, reentry, descent,
15 landing, or post-landing recovery of a launch vehicle, spacecraft, payload, or related
16 equipment, including but not limited to integration, conditioning, transport, and
17 associated ground support operations, whether conducted on-site or involving
18 overflight.
19 (b) The term "aerospace activity" shall not mean any act or activity related
20 to general administrative, managerial, or support functions, including but not limited
21 to human resources, payroll, bookkeeping, accounting, legal, marketing, sales,
22 information technology support, or other similar office or overhead activities,
23 regardless of whether these functions are performed on-site at a manufacturing
24 facility or elsewhere.
25 (2) "Approved aerospace facility" means an aerospace facility that is located
26 in Louisiana and certified by Louisiana Economic Development in accordance with
27 the provisions of this Section.
28 (3) "Approved aerospace facility contractor" means all of the following:
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1 (a) A contractor or subcontractor purchasing, leasing, operating, or
2 maintaining the approved aerospace facility.
3 (b) A contractor or subcontractor providing services for the construction,
4 repair, maintenance, or improvement of the approved aerospace facility or equipment
5 used in aerospace activities at an approved aerospace facility.
6 (4) "Approved aerospace facility owner" means the entity that enters into the
7 agreement with Louisiana Economic Development as provided for in this Section.
8 (5) "Department" means the Department of Revenue.
9 B.(1)(a) Subject to the limitations provided in Subparagraph (b) of this
10 Paragraph, an approved aerospace facility owner or approved aerospace facility
11 contractor shall be eligible for a rebate, to be paid annually, of sales and use taxes
12 of any taxing authority paid for the purchase, lease, rental, or use of machinery,
13 equipment, materials, supplies, or services used directly in aerospace activities at an
14 approved aerospace facility.
15 (b) Only purchases made on or after July 1, 2026, shall be eligible for the
16 rebate authorized in this Subsection.
17 (2) To be certified as an approved aerospace facility by Louisiana Economic
18 Development, the aerospace facility owner shall provide a sworn attestation that the
19 project will create a minimum of two hundred new direct, permanent, full-time jobs
20 in Louisiana and intends to expend at least one billion dollars in new capital
21 investment in Louisiana on or after July 1, 2026, but before July 1, 2031.
22 (3)(a) A facility that has been certified as an approved aerospace facility
23 shall enter into an agreement with Louisiana Economic Development that comports
24 with the requirements of this Paragraph.
25 (b) The agreement shall provide a term of rebate eligibility with an initial
26 term of twenty years, a list of all eligible recipients of the rebate, and language that
27 authorizes the state to terminate the agreement and recapture any rebates if the
28 approved aerospace facility fails to fulfill, or if Louisiana Economic Development
29 determines that the facility will be unable to fulfill its statutory and contractual
30 obligations. Failure to create a minimum of two hundred new direct, permanent,
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1 full-time jobs in Louisiana or to expend one billion dollars in new capital investment
2 in Louisiana by July 1, 2031, shall result in the termination of the rebate agreement
3 with Louisiana Economic Development.
4 (c) Upon the expiration of the initial term of the agreement, Louisiana
5 Economic Development may renew the agreement for an additional ten years.
6 (d) Louisiana Economic Development may include in the agreement any
7 additional conditions that it deems appropriate.
8 (4) An approved aerospace facility shall be issued a Direct Payment Number
9 in accordance with the applicable provisions of R.S. 47:303.1.
10 (5) The department may utilize any collection remedy authorized by R.S.
11 47:1561.2 for any rebates subject to recapture based on termination of the agreement
12 with Louisiana Economic Development or a determination that the purchase did not
13 qualify for the rebate. If a rebate is subject to recapture, the approved aerospace
14 facility owner shall reimburse the department or its agent for any costs incurred.
15 Notwithstanding any provision of law to the contrary, recapture of a rebate based on
16 a termination of the agreement may be initiated within the later of a time period set
17 forth in R.S. 47:1561.2 or two years after the date of termination of the agreement.
18 C.(1) Requests for the rebate of sales and use taxes levied by taxing
19 authorities pursuant to the provisions of this Section shall be processed by the
20 department. A taxpayer shall request a rebate of state tax using a form and in the
21 manner prescribed by the department.
22 (2) A taxpayer who requests a rebate pursuant to Subsection B of this
23 Section shall do all of the following:
24 (a) Obtain certification from Louisiana Economic Development that the
25 aerospace facility is an approved aerospace facility eligible to receive a rebate. A
26 copy of the certification shall be submitted to the department with the rebate request.
27 (b) Submit documentation to the department evidencing the purchases
28 eligible for the rebate.
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1 D.(1) Requests for the rebate of local sales and use taxes pursuant to the
2 provisions of this Section shall be processed by the appropriate local taxing
3 authority. A taxpayer shall claim a rebate of local tax using a form and in the manner
4 required by the local taxing authority.
5 (2) A taxpayer who requests a rebate pursuant to Subsection B of this
6 Section shall submit documentation to the local taxing authority evidencing the
7 purchases eligible for the rebate.
8 Section 2. This Act shall become effective on July 1, 2026.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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