Tax Increment Financing (Louisiana)
Last modified on February 12, 2015.
|Applies to States or Provinces||Louisiana|
|Name||Tax Increment Financing (Louisiana)|
|Policy Category||Financial Incentive|
|Policy Type||Property Tax Incentive, Sales Tax Incentive|
|Affected Technologies||Biomass/Biogas, Coal with CCS, Concentrating Solar Power, Energy Storage, Fuel Cells, Geothermal Electric, Hydroelectric, Hydroelectric (Small), Natural Gas, Nuclear, Solar Photovoltaics, Tidal Energy, Wave Energy, Wind energy|
Louisiana law provides for two types of Tax Increment Financing mechanisms: (1) property tax, also known as ad valorem, and (2) sales tax. Either form may be utilized to enhance an economic development project. In these, it is assumed the project will create future increases in tax revenue above present level of revenues collected in a specific geographic area. This portion of the specific revenue stream may be used to satisfy bond or other debt incurred in the construction of improvements, improvements which may be presumed to create increased tax revenues available. Economic development projects which may be enhanced through either TIF include initiatives in the following sectors: industrial/manufacturing, housing, hotel/motel, commercial/retail, amusement/theme park/tourism, transportation, medical services, and any other industry which the local government determines to be of economic significance.