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Restoration Tax Abatement

Revitalizing Communities

The Restoration Tax Abatement (RTA) program provides an up-to ten-year abatement of property taxes (ad valorem) on renovations and improvements of existing commercial structures and owner-occupied residences located within economic development districts, downtown development districts, historic districts and opportunity zones.

Five-year contract; option for five-year renewal with approval from local governing authority, Board of Commerce and Industry and governor’s approval.

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Eligibility

Restoration Tax Abatement (RTA) is available to all Louisiana businesses and homeowners with existing structures to be expanded, restored, improved or developed in qualifying locations, and as approved by the local governing authority. If property taxes have been paid on improvements, a business or homeowner is not eligible to apply for the exemption.

Qualifying Locations for Properties Include:

  • Downtown Development Districts
  • Historic Districts (includes properties listed on the National Register of Historic Places)
  • Opportunity Zones
  • Economic Development Districts*

*Different from Enterprise Zones and Economic Development Zones

Program Statutes & Rules:

RTA program rules may be found in the Louisiana Administrative Code maintained by the Office of the State Register.

Eligible Expenses:

  • Building and Materials
  • Machinery and Equipment (only that which becomes an integral part of the structure)
  • Labor and Engineering

Non-eligible Expenses:

  • Acquisition Cost of the Structure or Land
  • Movable and Personal Property

Process Overview

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1.

Submit Advance Notification with fee online.

2.

Submit application with fee and all required documentation online for LED review.

3.

Begin the project.

4.

LED reviews application and sends it to local governing authority for review.

5.

If local governing authority approves application, a resolution is sent to LED.

6.

Board of Commerce and Industry reviews application.

7.

If approved, the Board issues contract through LED.

8.

Submit Project Completion Report and Affidavit of Final Cost to LED with fees.

1.

Submit Advance Notification with fee online.

2.

Submit application with fee and all required documentation online for LED review.

3.

Begin the project.

4.

LED reviews application and sends it to local governing authority for review.

5.

If local governing authority approves application, a resolution is sent to LED.

6.

Board of Commerce and Industry reviews application.

7.

If approved, the Board issues contract through LED.

8.

Submit Project Completion Report and Affidavit of Final Cost to LED with fees.

Getting Started

First Step. Prior to project start, business owner or residential homeowner will submit online in FastLane, an Advance Notification, and pay filing fee.

If the contact designee is a representative other than a company official, a Disclosure Authorization is required and should be submitted inFastLane.

View non-refundable fees associated with this incentive.

Note: To determine if the overall tax benefit is greater than the cost to participate in this program, contact your assessor for approximate annual tax savings for the proposed investment in your property.

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Restoration Tax Abatement

Next Steps

Upon LED’s receipt of the advance notification and fee, the project may begin following these steps:

Submit online before beginning construction.

Includes construction, purchase of equipment that is an integral part of the structure, building and materials and other eligible capital investment transactions.

Upon receipt of application and fee, LED will review application for compliance, verify submitted information and provide a copy for resolution to the local governing authority. Upon receipt of an approval resolution from the local governing authority, application is presented for consideration to the Board of Commerce & Industry.

Application is presented for consideration to the Board of Commerce & Industry. Applicants will be notified within seven days of the board meeting with instructions, time and location of meeting. Applicants should have someone present to answer questions the Board may have regarding information contained in the application.

 

The board convenes every other month, meeting six times a calendar year.

Upon application approval by the Board of Commerce & Industry, a contract will be sent electronically from LED to the designated contract signatory via Adobe Sign. Contract should be reviewed and signed, within 60 days of receipt. Please note, on the signature page, the company contact refers to an employee of the company. A fully executed contract with governor’s signature will be emailed to you.

File with LED within 30 days following the last day of the month after effective use of the structure has begun, or construction is essentially completed, whichever occurs first.

File with LED within six months after construction has been completed, or within 90 days of receipt of executed contract, whichever occurs last.

The same approval process used for the original application and contract will be followed for renewal. A renewal application and fee must be submitted within six months of contract expiration. LED will review renewal application and forward to the local governing authority for approval resolution. Upon approval by the local governing authority, renewal application will be presented for consideration to the Board of Commerce and Industry.

Upon approval by the Board of Commerce and Industry, a contract will be sent electronically for signatures. A fully executed contract with the governor’s signature will be emailed to you.

If at any time during the term of a contract, a name change or transfer of ownership occurs; a Change in Name form or Contract Transfer form must be submitted for approval online. Upon receipt of an approval resolution from the local governing authority, request will be presented for approval to the Board of Commerce and Industry.

Eligibility Scenarios

To determine if the benefit is greater than the cost to participate contact the assessor to ask what your investment will add to the increased value of your property and how much additional tax you will be required to pay.

Yes, if allowed by local governing authority guidelines. The contract can be transferred to the new owner by submitting a request to LED, and subsequent approval from the local governing authority and the Board of Commerce and Industry. A Transfer of Ownership Request form must be submitted online with $250 fee.

No. Only improvements to the existing structure are eligible for the abatement. Acquisition cost of the structure or the land is not eligible for the abatement.

The tax abatement is not available if property taxes have been paid on the improvements made by the project. If, however, the application process has not been completed and those property taxes for the project are due, contact your local assessor to determine how to pay these taxes under protest and what steps may need to be taken to maintain eligibility.

If your structure is not currently located in an economic development district, contact your local governing authority to see if this may be an option.

Frequently Asked Questions

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The Restoration Tax Abatement Program is an incentive created for municipalities and local governments to encourage the expansion, restoration, improvement and development of existing structures in downtown development districts, economic development districts and historic districts.

Submit online in FastLane an Advance Notification and $250 filing fee prior to project start (i.e., before beginning construction)

A fee schedule is provided in the Getting Started section with the required fees.

Five-year abatement of ad valorem property taxes on the increased value of the property from the restoration, improvement, development or expansion of an existing structure.