House Bill No. by Representative Bacala proposes to amend and reenact R.S. 47:303.1(B)(5) and enact R.S. 47:305.82, establishing a state and local sales and use tax rebate for purchases related to aerospace facilities and activities. The bill defines key terms such as "aerospace activity," "approved aerospace facility," and "approved aerospace facility contractor." It stipulates that approved aerospace facility owners and contractors will be eligible for an annual rebate on sales and use taxes for machinery, equipment, materials, and services used directly in aerospace activities, with eligibility limited to purchases made on or after July 1, 2026.

To qualify for the rebate, facility owners must provide a sworn attestation to Louisiana Economic Development (LED) that their project will create at least 200 new permanent jobs and involve a minimum of $1 billion in capital investment within a specified timeframe. The bill requires certified facilities to enter into agreements with LED that outline the terms of rebate eligibility, including a 20-year initial term and conditions for recapture of rebates if obligations are not met. Additionally, the Department of Revenue will be authorized to utilize collection remedies for any rebates subject to recapture, and each approved aerospace facility will receive a direct payment number to facilitate tax remittance. The provisions of this bill will take effect on July 1, 2026.

Statutes affected:
HB1088 Original: 47:1(B)(5)