§2456. Rebate; payments

            A. The rebates authorized in this Chapter shall be paid annually after the employer has filed its application for annual rebate at the end of the employer's fiscal year with the Department of Economic Development, and the department has determined from the information submitted along with such application as provided for in R.S. 51:2457 that the employer is eligible for such rebate for such year.

            B.(1) In addition to the rebates provided in this Chapter, an employer who has executed a contract under the provisions of this Chapter and who meets the requirements of R.S. 51:2455(E) shall be entitled to either:

            (a)(i) The rebate of sales and use taxes imposed by the state, and imposed by any political subdivision as provided for in Item (B)(1)(a)(ii) of this Section, on purchases of materials used in the construction of a building, or any addition or improvement thereon, for housing any legitimate business enterprise and machinery and equipment used in that enterprise.

            (ii) When an advance notification to file an application for benefits under this Chapter is received by the department, the department shall notify the appropriate local governing body, including the office of the sheriff in the case of a law enforcement district, of receipt of the advance notification. An endorsement resolution or letter of approval shall be submitted by the appropriate local governing body within ninety days of receipt of notification from the department that an advance notification to file an application for benefits under this Chapter has been received. If a local governing body fails to submit an endorsement resolution, written reasons for denial, or a written request for delay of consideration of the application within the time allowed, the board may unilaterally approve or deny the request for the rebate of the sales and use taxes imposed by the state only. In the event that all local sales and use taxes are dedicated and are unavailable to be rebated, no endorsement resolution shall be required of a local governing authority before the board considers its application for benefits under this Chapter.

            (iii) All requests for a rebate of local sales and use taxes shall be accompanied by the endorsement resolution or letter of approval from the appropriate local governing body in whose jurisdiction the establishment is to be located.

            (b)(i) A project facility expense rebate equal to one and one-half percent of the amount of qualified capital expenditures for the facility or facilities designated in the contract.

            (ii) For purposes of this Subsection, the term "qualified capital expenditures" shall mean the amounts classified as capital expenditures for federal income tax purposes that are related to the project, plus exclusions from capitalization provided for in Internal Revenue Code Section 263 (a)(1)(A) through (L), minus the capitalized cost of land, capitalized leases of land, capitalized interest, capitalized costs of manufacturing machinery and equipment, to the extent the capitalized costs of manufacturing machinery and equipment are excluded from sales and use tax pursuant to R.S. 47:301(3), and the capitalized cost for the purchase of an existing building. If a business purchases an existing building and capital expenditures are used to rehabilitate the building, only the cost of the rehabilitation shall be considered qualified capital expenditures.

            (iii) A qualified business shall be allowed to increase its qualified capital expenditures to the extent the qualified business' capitalized basis is properly reduced by claiming a federal credit.

            Acts 2002, 1st Ex. Sess., No. 153, §1, eff. May 1, 2002; Acts 2007, No. 400, §1, eff. July 10, 2007; Acts 2016, No. 663, §1, eff. July 1, 2016.