La. Admin. Code tit. 13 § I-3901

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-3901 - Purpose and Definitions

A. Purpose

1. The primary purpose of this Subchapter is to encourage private investment in public port facilities in Louisiana. The development, improvement, expansion, and maintenance of the state's ports and port infrastructure facilities, is essential to Louisiana's economic health and the ability of business and industry associated with the maritime industry to compete cost effectively on a regional, national, and global scale.

B.

Applicant- investing company or proposing entity submitting application for certification of project/expenditures/tax credits

Application Date- the date an application for preliminary certification of a project is received by LED.

Capital Costs-

a. all costs and expenses incurred by an investing company.

i. in connection with acquisition, construction, installation, and equipping of a qualifying project;

ii. during the period commencing with the date on which the acquisition, construction, installation, and equipping commences and ending on the date on which the qualifying project is placed in service.

b.Capital costs shall include, but are not limited to:

i. costs of acquiring, constructing, installing, equipping, and financing a qualifying project, including all obligations incurred for labor and to contractors, subcontractors, builders, and materialmen;

ii. the costs of acquiring land or rights in land and any cost incidental thereto, including recording fees;

iii. the costs of contract bonds and of insurance of any kind that may be required or necessary during the acquisition, construction, or installation of a qualifying project;

iv. the costs of architectural and engineering services, including test borings, surveys, estimates, plans, and specifications, preliminary investigations, environmental mitigation, and supervision of construction, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, and installation of a qualifying project;

v. the costs associated with installation of fixtures and equipment; surveys, including archaeological and environmental surveys; site tests and inspections; subsurface site work; excavation; removal of structures, roadways, cemeteries, and other surface obstructions; filling, grading, paving, and provisions for drainage, storm water retention, installation of utilities, including water, sewerage treatment, gas, electricity, communications, and similar facilities; off-site construction of utility extensions to the boundaries of the property;

vi. costs otherwise defined as capital costs incurred by the investing company where the investing company is the lessee under a lease that contains a term of not less than five years and is characterized as a capital lease for federal income tax purposes;

vii. all other costs of a nature comparable to those described, including but not limited to all project costs required to be capitalized for federal income tax purposes pursuant to the provisions of 26 U.S.C. § 263(A).

c.Capital costs shall not include property owned or leased by the investing company or a related party before the commencement of the acquisition, construction, installation, or equipping of the qualified project unless such property was physically located outside the state for a period of at least one year prior to the date on which the qualifying project was placed in service.

COA- the Commissioner of Administration of the State of Louisiana

DOTD- the Louisiana Department of Transportation and Development.

Estimated Start Date- the estimated date on which the acquisition, construction, installation, or equipping of the qualifying project was commenced or is expected to commence.

Investing Company- any corporation, partnership, limited liability company, proprietorship, trust, or other business entity, regardless of form, making a qualified investment.

Investors- shareholders, partners, members, owners, or beneficiaries of an investing company.

JLCBthe Joint Legislative Committee on the Budget.

LED- the Louisiana Department of Economic Development.

LDRthe Louisiana Department of Revenue.

Port Activity- any trade or business described in the 1997 North American Industry Classification System (NAICS) within Subsector 493 (Warehousing and Storage), Industry Number 488310 (Port and Harbor Operations), or Industry Number 488320 (Marine Cargo Handling), when the trade or business is conducted on premises in which a public port has an ownership, leasehold, or other possessory interest and such premises are used as part of the operations of a public port, including the above trades and businesses as they may hereafter be reclassified in any subsequent publication of the NAICS or similar classification system developed in conjunction with the United States Department of Commerce and Office of Management and Budget.

Project- any land, building, or other improvement, and all real and personal properties deemed necessary or useful in connection therewith, whether or not previously in existence, located or to be located in a public port of the state.

Proposing Entity- The public port, upon whose property, a qualifying project is to be undertaken.

Public Port- any deep-water port commission or port, harbor and terminal district as defined in Article VI, Section 44 of the Constitution of Louisiana, and any other port, harbor, and terminal district established under Title 34 of the Louisiana Revised Statutes of 1950.

Qualified Investment- the financial undertaking by an investing company of a qualifying project.

Qualifying Expenditures- Expenditures in the state, after the application date, for capital costs of a qualifying project.

Qualifying Project project sponsored or undertaken by a public port and an investing company.

a. with a capital cost of not less than one and one-half million dollars, and

b. at which the predominant trade or business activity conducted will constitute industrial, warehousing, or port and harbor operations and cargo handling, including any port or port and harbor activity.

c. it shall not mean bulk liquid or gas facilities.

State- the State of Louisiana.

SBC- the Louisiana State Bond Commission.

La. Admin. Code tit. 13, § I-3901

Promulgated by the Department of Economic Development, Office of the Secretary, LR 36:2543 (November 2010), Amended LR 48403 (3/1/2022).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6036.